• 1. 
    When the risk of losses in on- or off-balance sheet positions arise from movement in market prices, it is called

  • Systematic risk
  • Equity risk
  • Market risk
  • Legal risk
  • 2. 
    Which one is not the international trade flows?

  • Regional trade bloc
  • Trade agreements
  • Tariffs
  • Exports and imports
  • 3. 
    The Financial Stability Board's principles of risk management do NOT includes:

  • An effective risk appetitive framework
  • Risk appetitive statement
  • Diversification porfolios
  • Risk limits
  • 4. 
    There are more than two parties in multilateral netting

  • True
  • False
  • 5. 
    Why firms pursue international business?

  • To seek comparative advantage
  • To avoid market restriction
  • To achieve new market target
  • All Of above
  • 6. 
    Which one is an example of human risk?

  • A teller accidentally gives an extra $50 bill to a customer
  • Borrowers default on a principal or interest payment of a loan
  • Computer hacking
  • A large number of depositors withdraw their deposits at bank
  • 7. 
    What is the main reason for shifting profits from one country to another country?

  • To benefit from a difference in tax rates
  • To avoid double taxation
  • To benefit from investment opportunities
  • To increase overall pre-tax profits
  • 8. 
    Equity comes from:

  • Bond issues
  • Loans
  • Receivables
  • None of above
  • 9. 
    What is the most important activity among the cash flow sources?

  • Investment activity
  • Operating activity
  • Financing activity
  • None of above
  • 10. 
    Market risk arises because of all of the following reasons EXCEPT

  • Adverse changes in interest rates
  • Adverse change in foreign exchange rates
  • Terrorist attacks, tsunamis and earthquakes
  • 11. 
    Which of the following is not the purposes of international financial management?

  • It is closely related to other activities in an organization such as asset management, marketing management, or human resource management.
  • It helps managers to plan and estimate reasonable costs for situations that arise in the future.
  • It assures the sustainable management of resources globally.
  • It will help businesses easily find new sources of profits such as investment in equity and loans.
  • 12. 
    The technique that relies on computer modeling of different scenarios and computation of the results of those scenarios on bank’s portfolio is

  • Stress Testing
  • Value at Risk (VaR)
  • Altman's Z Score model
  • The Standardised Approach
  • 13. 
    What is the simplest type of exchange exposure?

  • Transaction exposure
  • Translation exposure
  • Economic exposure
  • 14. 
    What type of risk that occurs from the failure of borrowers to make required payments on loans?

  • Liquidity risk
  • Credit risk
  • Operational risk
  • Market risk
  • 15. 
    When bank’s image and public standing is in doubt and leads to public’s loss of confidence in a bank, it is called

  • Reputational risk
  • Market risk
  • Operational risk
  • Moral Hazard
  • 16. 
    Which choice is classified as political risk factors?

  • Currency Inconvertibility
  • Corruption
  • War
  • All Of above
  • 17. 
    According to Basel Accord II, the minimum capital ratio is

  • 9%
  • 8%
  • 7%
  • 6%
  • 18. 
    When there is a financial loss to bank arising from legal suits filed against the bank or by bank for wrongly applying regulation, it is called

  • Systematic risk
  • Equity risk
  • Market risk
  • Legal risk
  • 19. 
    Who is the player in foreign exchange market?

  • Commercial banks
  • Retailers
  • Wholesalers
  • Workers
  • 20. 
    What does tax haven't do for multinational companies?

  • To double the corporate tax of multinational where it is located
  • To require residency or business presence for individuals and businesses to benefit from their tax policies
  • To share limited or no financial information with foreign tax authorities
  • To release the tax policy to force the multinationals to pay where they make vast values
Report Question