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Examination Paper of Finance Management
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
International Finance
Section A: Objective Type & Short Questions (30 Marks)
 This section consists of Multiple choice & Short Note type questions.
 Answer all the questions.
 Part One carries 1 mark each & Part Two carries 5 marks each.
Part One:
Multiple choices:
1. Foreign exchange market in India is relatively very ________.
a. Big
b. Small
c. Medium
d. None of the above
2. Balance of payment is a systematic record of all _______ during a given period of time.
a. Political transactions
b. Social transactions
c. Economic transactions
d. None of the above
3. Merchandise trade balance, services balance & balance on unilateral transfer are the part of
________ account.
a. Current account
b. Capital account
c. Official account
d. None of the above
4. Interest rate swaps can be explained as an agreement between _________ parties.
a. One
b. Two
c. Three
d. None of the above
5. Capital account convertibility in India evolved in August
a. 1996
b. 1995
c. 1994
d. None of the above
6. Interest rate parity is an economic concept, expressed as a basic algebraic identity that relates. a. Capital rate & interest rate
b. Interest rate & exchange rate
Examination Paper of Finance Management
2
IIBM Institute of Business Management
c. Currency rate & exchange rate
d. None of the above
7. The two kind of swap in the forward market are_________
a. Forward & reverse swap
b. Reverse swap & option swap
c. Forward & option less swap
d. Forward swap & option swap
8. FEMA stands for_________
a. Forward exchange market
b. Future exchange market
c. Foreign exchange management act
d. None of the above
9. Exchange rate quotation methods are________
a. Direct and direct
b. Indirect and

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