Quiz  /  International Trade and Finance Gate & PSU MCQ Questions With...

  • 1. 
    The dark matter hypothesis is asking to revisit the question what is actually the true net asset position of a country.

  • False
  • True

  • 2. 
    What is Purchasing Power Parity?

  • Is an economic theory that allows the comparison of the purchasing power of various world currencies
  • Difference between all money flowing into the country in a particular period of time
  • Societies and countries have differing levels of "development" on an international scale.
  • None of them

  • 3. 
    What are the Trade Imbalances?

  • A rise of prices over a certain period of time
  • Societies and countries have differing levels of "development" on an international scale.
  • Difference between the monetary value of a nation´s exports and imports over a certain time period
  • I don´t know

  • 4. 
    Two institutes created with BWS are ___________

  • IMF
  • World Bank
  • Asian Development Bank
  • Both A & B

  • 5. 
    _____ investor makes risk free profit.

  • Hedger
  • Speculator
  • Arbitrageur
  • Bull

  • 6. 
    Fixed Exchange Rate is permanently fixed.

  • True
  • False

  • 7. 
    What is the classical gold standart?

  • Doesn´t say
  • An increase of prices over the time
  • The possibility o an unprecedented event occur that affects asset prices
  • Was a system in which nearly all countries fixed the value of their currencies in terms of a specified amount of gold

  • 8. 
    The Nomial Exchange Rate is the relative price of currencies of two countries.

  • False
  • True

  • 9. 
    Bretton Woods System states that Each country fixed the value of its currency in terms of gold or dollar and kept its price within a range of 1% of its parity value

  • True
  • False

  • 10. 
    Which are the sides of the crisis?

  • Banking Crisis
  • Capital and Trade Imbalance
  • Fiscal Crisis
  • All of the above

  • 11. 
    Cash Rate is ______

  • T+0
  • T+2
  • T+3
  • T+1

  • 12. 
    Spot Rate is _______

  • T+0
  • T+1
  • T+2
  • T+3 Onward

  • 13. 
    Ask Rate is a rate at which Bank ________

  • Buys
  • Sells
  • Negotiate
  • Trade

  • 14. 
    What is a reserve currency?

  • An unpredictable event may occur which affects the asset prices
  • A large quantity currency maintained by major financial institutions to prepare for investments to influence their domestic exchange rate
  • System created a collective international currency exchange regime
  • A supply of a commodity not needed for immediate use but available if required.

  • 15. 
    Bid Rate is a rate at which Bank _________

  • Sells
  • Negotiates
  • Trades
  • Buys

  • 16. 
    _______declared that USA will not accept BWS.

  • Nixxon
  • Ronald Regan
  • Donald Trump
  • Barack Obama

  • 17. 
    International Finance Analyzes the following areas of study:

  • Optimum currency area theory
  • Mudell-Flemig Model
  • Interest Rate Parity
  • All of the Above

  • 18. 
    Dirty Float is also called as _______

  • Fixed Exchange Rate
  • Floating Exchange Rate
  • Managed Float
  • Clean Float
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