Deck 6: Foreign Exchange and Investment

Question 1

As per FEMA, no person, other than ________ would enter in any transactions of the foreign currency.

A)Offshore banks
B)Parliament
C)Government
D)Authorized Dealer

Answer 1

Authorized Dealer

Question 2

The monetary penalty payable under FERA was nearly ___________times the amount involved.

A)Three
B)Five
C)Two
D)Six

Answer 2

Five

Question 3

__________ implies investment made with an intent of obtaining an ownership stake in an enterprise domiciled in a country by an enterprise situated in some other country.

A)FDI
B)FPI
C)Two
D)Six

Answer 3

FPI

Question 4

RBI has granted license to certain established firms, hotels and other organizations permitting them to deal in foreign currency notes, coins and travelers' cheques. They are termed as ___________

A)Authorized Banks
B)Authorized Dealers
C)Authorized Money changers
D)Authorized shopkeeper

Question 5

FEDAI stands for _____________

A)Foreign Exchange dealers act of India
B)Foreign Exchange direct association of India
C)Foreign exchange dealers association Index
D)Foreign exchange dealers association of India

Question 6

____________ can authorize a person / company to deal in foreign exchange.

A)SEBI
B)RBI
C)IRDA
D)Parliament

Question 7

__________ is the process of analyzing and ranking proposed projects to determine which ones deserving of an investment.

A)IPO
B)Debt financing
C)Capital Budgeting
D)Budgeting

Question 8

Walmart opening a new retail outlet is an example of _______________ project.

A)Expansion
B)Regulatory
C)Replacement
D)R & D

Question 9

Net amount of all cash flowing in and out of the business, from all sources is ____________ cash flow.

A)Incremental
B)Total
C)Terminal
D)Capital budgeting

Question 10

_________ are the initial outlays required to analyse a project that cannot be recovered even if a project is accepted.

A)Opportunity cost
B)Externally
C)Cannibalization
D)Sunk cost

Question 11

___________ means transfer of corporate money from a foreign country back to its home country.

A)Repatriation
B)Capital Budgeting
C)Withholding
D)Holding

Question 12

Lower the better applies to ___________ capital budgeting method.

A)NPV
B)Payback period
C)IRR
D)Profitability Index

Question 13

Formula of profitability index is ___________

A)PV of cash inflow / PV of cash outlay
B)Pv of cash inflow - PV of cash outlay
C)PV of cash inflow + Pv of cash outlay
D)PV of cash outlay / PV of cash inflow

Question 14

__________ monitors the balance of payments of its member nations.

A)World Bank
B)IMF
C)WTO
D)IFC

Question 15

_________ supporters' sustainable investments in the private sector.

A)IFC
B)World Bank
C)IMF
D)WTO

Question 16

_____________ includes risk of loss from uniform political and government issues.

A)Political Risk
B)International Finance
C)Imperfect Market
D)Foreign Exchange risk

Question 17

Due to imperfection in markets ___________ are restricted by a limit to invest and manage their portfolio.

A)Investors
B)Creditors
C)Debtors
D)Consumers

Question 18

____________ to promote domestic investment and growth through capital Market.

A)International Finance
B)World Bank
C)WTO
D)IFC

Question 19

_________ it increases in flow of capital and investment to developing economics.

A)Globalization
B)Privatization
C)Liberalization
D)Balance of payment

Question 20

________ control over the monetary system of India.

A)RBI
B)IFC
C)IMF
D)WTO

Question 21

_________ records all international transactions that involve creation of assets and liabilities in foreign currencies.

A)Capital Account
B)Reserve Account
C)Current Accountant
D)Saving Account

Question 22

_____________ leads to increasingly the standard of living of developing economics.

A)Privatization
B)Globalization
C)Liberalization
D)Bank of Trade

Question 23

__________ also relates to international assets and liabilities for such transactions which the country's monetary authorities use to such transactions which the country's monetary authorities use to settle the deficits and surpluses.

A)Reserve Account
B)Capital Account
C)Saving Account
D)Current Account

Question 24

___________is a statistical residence.

A)Balance of payment
B)Balance of Trade
C)Omissions
D)Errors and omissions