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Foreign Exchange Management Test 2
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Foreign Exchange Management Test 2
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25 Questions

1. The anchor currency that was used in the original scheme of IMF was
2. Discount is ----- from spot rate to arrive forward rate
3. A credit in BOP indicates
4. The exchange exposure that does not lead to changes in cash flow is
5. ---- in the country will increase domestic prices
6. A two month forward contract booked on 25th March will due on
7. Rate at which banks selling forex----
8. Category III of Authorized dealers in India are
9. The acronym FEDAI stands for
10. In foreign exchange markets American quotation refers to
11. The option period for option forward rate should not exceed
12. The term Loro account means
13. CHAPS is similar to CHIPS and available in
14. Generally imports are recorded at _________ value in BOP
15. For balance of payment statistics, visible trade refers to trade in
16. Derivatives are so called because
17. _______________ is a process of taking advantage of differentials in interest rates of two currencies while eliminating exchange risk
18. The reduction in the value of the currency due to market forces is known as
19. Non- resident bank accounts in India are maintained in
20. Which of the following is not considered a unilateral transfer
21. A currency future is not
22. The demand for domestic currency in the foreign exchange market is indicated by the following transactions in balance of payment
23. The term risk in business refers to
24. ---- may be booked for exporters and importers without documents
25. Transaction exposure can be hedged