Row Labels

1
Spot USD/INR 55.8325 - 55.8350, 1 month forward 765-735, 1 month forward will be __________
54.9040-54.9060
55.7560-55.7615
55.9060-55.9115
55.7590-55.7585
B
2
100 INR / USD mid-rate = 2.1615, spread = 0.0005, percentage spread = __________
0.000766
0.013042
0.000231
0.002344
C
3
USD/CAD = 1.1630/1.1650, what is the inverse quote
USD/CAD = 0.8584/0.8598
CAD/USD = 0.8584/0.8598
USD/CAD = 0.8598/0.8584
CAD/USD = 0.8598/0.8584
B
4
100 INR / USD 2.1605-2.1610 Spread will be ________
0.0004
-0.0006
-0.0005
0.0005
D
5
GBP/NZD 2.0397-07 The full form of Exchange Rate will be GBP/NZD______
2.0397-07
2.0397-2.0307
2.0397-2.0407
2.0407-2.3097
C
6
1USD =CAD 1.1630/1.1650, which is the variable currency in this quote _______
USD
CAD
AUD
INR
B
7
1GBP=USD 1.7412/1.7418, which currencyt is Direct Quote ________
GBP
USD
 INR
SGD
B
8
Spot USD INR 75 and three months forward is USD INR 80. AFM is ___________.
0.2667
-0.2667
-0.25
0.25
A
9
USD/CAD 1.1685 - 1.1695, USD/CHF 1.3785 - 1.3795. Find BID rate for CAD/CHF
1.1787
1.2787
1.1896
1.1806
A
10
Bank A GBP/CHF 2.4326 - 2.4336, Bank B GBP/CHF 2.4330 - 2.4350. Find Geographical Arbitrage for 1 million
987 GBP
No Arbitrage
987 CHF
1987 GBP
B
11
USD/CAD 1.1293, USD/CAD 1.1275. Find Geographical Arbitrage for 12 Million.
20000 USD
No Arbitrage
19157 USD
17157 USD
C
12
USD/DKK 6.4270 - 6.4370 Inverse the Quote
DKK/USD 0.1544-0.1556
DKK/USD 0.1554-0.1556
DKK/USD 0.1554-0.1656
DKK/USD 0.1644-0.1656
B
13
100 INR/JPY 198.2350 - 50. Inverse the quote
50.4452-50.4852
49.5543-50.4452
50.4426-504452
49.5543-50.4426
B
14
If one Euro is equal to C$1.4904, then one Canadian dollar is equal to how many Euros?
 0.6453
0.6767
0.671
0.6545
C
15
Spot GBP/INR 78.3250-78.3275, 3 month forward 390-475, 3 month forward will be __________
78.3640-78.3770
78.3640-78.3750
78.3750-78.3640
78.3610-78.3750
B
16
USD/CAD mid-rate = 1.1295, spread = 0.0050, % spread = ___________
0.000766
0.004427
0.000018
0.002344
B
17
EUR = CAD 1.4317 - 1.4327, What is the inverse quote _____________
EUR=CAD 0.6980 -0.6985
CAD=EUR 0.6980 -0.6985
CAD=EUR 0.6985 -0.6980
EUR=CAD 0.6985 -0.6980
B
18
GBP / INR 78.6500-78.6530, Spread will be _________
0.003
0.005
0.006
-0.003
A
19
100 INR/JPY 173.1525-25 The full form of Exchange Rate will be 100INR/JPY______
173.1525 - 198.1525
173.1525 - 173.1625
173.1525 - 173.1525
173.1525 - 173.1500
B
20
1GBP=USD 1.7412/1.7418, which is the Base currency in this quote ___________
GBP
USD
INR
SGD
A
21
CHF/USD 1.2325-35, for which currency it is Indirect Quote _____________
India
USA
UK
Switzerland
D
22
Spot GBP INR 96 and three months forward is GBP INR 90. AFM is ___________.
0.25
-0.2
-0.25
0.2
C
23
Trade Restriction is called as ___________
Trade stopper
Trade Barrier
Trade Booster
Trade Damage
B
24
Under flexible exchange rate system, exchange rate is determined by the:
Demand for exchange
Supply of foreign exchange
Supply and demand forces
Government
C
25
Which of the following is the merit of flexible exchange rate system:
Optimum resources allocation
Market stability
External shocks
Stable monetary policy
A
26
A foreign currency account maintained by a bank abroad is its
nostro account
vostro account
Foreign bank account
loro account
A
27
Arbitrageur in a foreign exchange market
buys when the currency is low and sells when it is high
sells the currency when he has a receivable in furture
buys and sells simultaneously the currency with a view to making riskless profit
 buys or sells to make advantage of market imperfections
C
28
The selling rate is also known as
bid rate
offer rate
spread
Customer Rate
B
29
Company wants to borrow 6 million for a period of 6 months in GBP. For 1 GBP/ INR Spot rate is 80.7125-75 and
60000
62487
65423
66754
D
30
Company wants to borrow 12 million for a period of 3 months in EUR. For 1 EUR/ INR Spot rate is 65.2545 - 66.2
392611
391611
390611
389611
A
31
Spot USD/SGD 1.0510, 3 month forward 1.0560, SGD Interest Rate 1.60% p.a., USD Interest Rate 0.60% p.a., for
No Arbitrage Gain
Borrow in SGD and Invest in USD
Borrow in USD and Invest in SGD
Borrow in USD and Invest in INR
B
32
USD/CHF 1.3705 - 1.3715, GBP/USD 1.9355 - 1.9365. Find Cross Currency BID rate for GBP/CHF
2.6559
2.5626
2.6526
2.5659
C
33
EUR/USD 1.3132, USD/SGD 1.4733. Find Cross Currency Rate for EUR/SGD.
1.9322
1.9332
1.9357
1.9347
D
34
The theory which considers the change in exchange rate with the uctuations in ination rates is classied as
liquidated power parity
 selling power parity
purchasing power parity
volatile power parity
C
35
Exchange rates are determined in
the money market.
the foreign exchange market
the stock market.
the capital market.
B
36
The immediate (two-day) exchange of one currency for another is a
forward transaction.
spot transaction.
money transaction.
daily transaction
B
37
The theory of purchasing power parity cannot fully explain exchange rate movements because
all goods are identical even if produced in different countries
monetary policy differs across countries
some goods are not traded between countries.
fiscal policy differs across countries
C
38
Depreciation of a currency is
the increase in the value of one currency in terms of another.
the decrease in the value of one currency in terms of another.
an arbitrary increase in the value of a currency that had previously been fixed in value.
an arbitrary decrease in the value of a currency that had previously been fixed in value.
B
39
In 2019, the exchange rate for the Canadian dollar against the French franc was 1CAD = 0.25FF. In 1999, through
appreciated
depreciated
been re-valued
been devalued
A
40
The Law of one price states
that under certain conditions, the domestic and foreign price of a tradable good should be equal.
that under certain conditions, the exchange rates between two countries should be equal.
that under certain conditions, the domestic and foreign price of a tradable good should be somewhat close
that under certain conditions, the domestic and foreign price once converted with exchange rate shou
D
41
 A managed float regime is when
a country's currency is pegged to another currency
market forces are allowed to determine the exchange rate
the central bank intervenes in the market for foreign exchange to hold the rate at some desired level.
is when the IMF intervenes to establish manage the various exchange rates in selected countries.
C
42
In direct quotation the principle adopted by the bank is to
buy low only
buy high; sell low
buy low; sell high
Sell Low only
C
43
The external methods of hedging transaction exposure does not include-
forward contract hedge
money market hedge
cross hedging
futures hedging
C
44
Leading refers to-
advancing of receivable
advancing of payable
advancing payments either receivables or payables
advancing of receivables and delaying of payables
C
45
Which of the following is not a type of foreign exchange exposure?
Tax Exposure
Transaction exposure
Translation exposure
Balancesheet Exposure
A
46
Foreign exchange market is considered 24 hours market because
it is open all through the day
all transactions are to be settled within 24 hours
due to geographical dispersal at least one market is active at any point of time
minimum 24 hours must elapse before any transaction is settled
C
47
Company wants to borrow 10 million for a period of 6 months in GBP. For 1 GBP/ INR Spot rate is 95.25 - 95.30
294654
295654
292654
297654
 D
48
Company wants to borrow 12 million for a period of 3 months in USD. For 1 USD/ INR Spot rate is 48.8830 - 60 a
221136
222631
219631
219136
B
49
Spot USD/SGD 1.2425, 3 month forward 1.2435, SGD Interest Rate 0.40% p.a., USD Interest Rate 1.00% p.a., for
Borrow in USD and Invest in SGD
Borrow in SGD and Invest in USD
Borrow in INR and Invest in USD
No Arbitrage Gain
B
50
In spot market, exchange of currencies take place on_________.
T+1
T+2
T+0
T+4
B
51
SDR is an international reserve asset, created by_________.
IMF
WTO
World Bank
IBRD
A
52
Ask rate is determined by following formula ____________
Mid Rate – (Spread ÷ 2)
Mid Rate × (Spread ÷ 2)
Bid Rate – (Spread ÷ 2)
Mid Rate + (Spread ÷ 2)
D
53
FDI stands for _____________.
Foreign Direct Intermediation
Foreign Domestic Investment
Foreign Direct Intervention
Foreign Direct Investment
D
54
Sale or purchase of gold in BoP is covered under _________.
capital Account
Current Account
 Official Reserve Account
Balancing Items
C
55
Systematic record of economic transactions of a country during a given period of time is __________.
ADR
BOP
GDR
IFRS
B
56
Establishing a fixed exchange rate between one national currency and another is called the ___________ Peg of
Soft
Hard
Floating
Mixed
B
57
__________ is a financial institution that accepts foreign currency denominated deposits and makes foreign cur
Central Bank
RBI
Euro Bank
World Bank
C
58
Money market instruments include all the following, except _____________.
Commercial Papers
T-Bills
Certificate of Deposit
Equity shares
D
59
IPO stands for _______________
Indian Profit Organization
Investment and Public Offering
Initial Public Offering
Initial Prospectus Offering
C
60
____________ refers to the size or scope of potential loss.
Risk
Uncertainty
Exposure
None of these
C
61
In the ________ method, the revenues and costs of a project are estimated and then they are discounted and co
 PBP
IRR
NPV
PI
C
62
The project is financially viable, if the NPV is _____
Positive
Negative
Zero
Infinite
A
63
Internal techniques of managing forex risk includes all of the following, except ______________.
Leading and lagging
Matching
Split currency invoicing
Forward and future contracts
D
64
The demand for domestic currency in the foreign exchange market is indicated by the following transactions in
Export of goods and services
Import of goods and services.
Export of goods and services and capital inflows.
Import of goods and services and capital outflows.
C
65
The theory according to which the difference between expected appreciation and foreign interest must be equa
appreciation parity theorem
interest rate parity theorem
domestic parity theorem
foreign interest parity theorem
B
66
USD/CHF 1.3705 - 1.3715, GBP/USD 1.9355 - 1.9365. Find Cross Currency ASK rate for GBP/CHF
2.6559
2.5626
2.6526
2.5659
A
67
EUR/USD 1.3132, USD/SGD 1.4733. Find Cross Currency Rate for EUR/SGD.
1.9322
1.9332
1.9357
1.9347
D
68
USD/CAD 1.1685 - 1.1695, USD/CHF 1.3785 - 1.3795. Find BID rate for CAD/CHF
1.1787
1.2787
1.1896
1.1806
D
69
Bank A GBP/CHF 2.4326 - 2.4336, Bank B GBP/CHF 2.4330 - 2.4350. Find Geographical Arbitrage for 1 million
987 GBP
No Arbitrage
987 CHF
1987 GBP
B
70
USD/CAD 1.1293, USD/CAD 1.1275. Find Geographical Arbitrage for 12 Million.
20000 USD
No Arbitrage
19157 USD
17157 USD
C
71
100 INR/JPY 198.2350 - 50. Inverse the quote
50.4452-50.4852
49.5543-50.4452
50.4426-504452
49.5543-50.4426
B
72
USD/DKK 6.4270 - 6.4370 Inverse the Quote
DKK/USD 0.1544-0.1556
DKK/USD 0.1554-0.1556
DKK/USD 0.1554-0.1656
DKK/USD 0.1644-0.1656
B
73
If one Canadian dollar is equal to US$0.6134, then one US dollar is equal to how many C$?
1.6303
1.5406
1.5967
1.4534
A
74
IFRS stands for _____________
International Financial Recognition Standards
International Financial Reporting Standards
International Financial Reporting Solutions
 International Foreign Reporting Standards
B
75
_____________ is not a part of unilateral transfers.
Gifts
Donations
Remittances by worker
Short Term Loans
D
76
The current account in the balance of payments ________.
includes merchandise trade and services
is a total of all the visible items of trade
includes borrowings
includes autonomous and accommodating flows
A
77
Spot rate is also called as __________.
Future Price
Forward Price
Swap Price
Current Market Price
D
78
Under ___________ exchange rate system, the central bank of a nation intervenes in exchange rate determinat
Managed Float
Fixed
Flexible
Crawling Peg
A
79
__________ deal in currencies to benefit from movements in currency exchange markets.
Arbitrageurs
Hedgers
Speculations
None of these
C
80
____________ is a market where foreign currencies are bought and sold.
Stock Market
Forex Market
Capital Market
Debt Market
B
81
The current account balance of BOP does not include __________
Services Exports
 FDI
Unilateral Transfers
Non-factor Services
B
82
Required Return from an investment = __________
Risk Free Return + Risk Premium
Risk Free Return – Risk Premium
Risk Free Return x Risk Premium
Risk Free Return / Risk Premium
A
83
___________ can authorize a person/company to deal in foreign exchange.
SEBI
RBI
IRDA
Parliament
B
84
Lower the better applies to ______________ capital budgeting method.
NPV
Payback Period
IRR
Profitability Index
B
85
The risk of loss in your purchasing power because the value of your investment does not kep upwith inflation is
Concentration Risk
Liquidity Risk
Credit Risk
Inflation Risk
D
86
____________helps to equalize the exchange rate in all part of the foreign
interest arbitrage
speculation
hedging
Two-point arbitrage
B
87
IDR stands for __________.
International Depository Receipts
Indian Deposit Receipts
International Deposit Receipts
Indian Depository Receipts
D
88
 Vehicle currency is________________.
a standard internationally accepted currency
a currency of IMF
a currency issued by RBI
Home Currency
A
89
Arbitrage refers to purchase and sale of an asset _______________.
at low price in one market and its simultaneous sale at higher price in another market
at high price in one market and its sale at lower price in another market
purchase and sale at the same price
at auction price.
A
90
Who maintains the foreign exchange reserves in India ?
Reserve Bank of India
State Bank of India
Ministry of Finance, Government of India
Export-Import Bank of India
A
91
Devaluation of a currency means
Reduction in the value of currency vis a vis major internationally traded currencies
Permitting the currency to seek its worth in the international market
Fixing the value of the currency in conjunction with the movement in the value of a basket of predetermin
Fixing the value of a currency in multilateral consultation with the IMF, the World Bank, and major tra
A
92
Which one of the following is implied by interest rate parity?
Interest rates are at par in all the countries.
Movements in spot rates and forward rates in the foreign exchange market are same.
Potential holders of foreign currency deposits do not view these deposits as a desirable asset.
A condition that the expected returns on deposits in any two countries are equal when measured in t
D
93
India’s foreign exchange rate system is?
Free float
Managed float
Fixed
Fixed target of band
B
94
Indirect rate in foreign exchange means
The rate quoted with the units of home currency kept fixed.
The rate quoted with units of foreign currency kept fixed.
The rate quoted in terms of a third currency
The rate quoted in terms of a reporting currency
 A
95
An agreement to exchange dollar bank deposits for euro bank deposits in one month is a
forward transaction.
spot transaction.
future transaction.
monthly transaction.
A
96
Today 1 euro can be purchased for $1.10. This is the
spot exchange rate.
forward exchange rate
fixed exchange rate.
money exchange rate.
A
97
In an agreement to exchange dollars for euros in three months at a price of $0.90 per euro, the price is the
spot exchange rate.
forward exchange rate
fixed exchange rate.
money exchange rate.
B
98
When the value of the British pound changes from $1.25 to $1.50, then
the pound has appreciated and the dollar has appreciated.
the pound has depreciated and the dollar has appreciated.
the pound has appreciated and the dollar has depreciated.
the pound has depreciated and the dollar has depreciated.
C
99
When the value of the dollar changes from 0.5 pounds to 0.75 pounds, then
the pound has appreciated and the dollar has appreciated.
the pound has depreciated and the dollar has appreciated.
the pound has appreciated and the dollar has depreciated.
the pound has depreciated and the dollar has depreciated.
B
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Grand Total
1 USD/INR=68.1610/68.1615, which country it is Direct Quote
A. India
B. USA
C. UK
D. Japan
Correct INR

2 1USD =CAD 1.1630/1.1650, which is the variable currency in this quote

A. US DOLLAR
B. CANADIAN DOLLAR
C. CHINESE YUAN
D. DIRHAM
Correct CAD

3 1GBP=USD 1.7412/1.7418, which is the Base currency in this quote

A. GBP
B. USD
C. INR
D. SGD
Corr GBP

4 100 JPY/GBP=0.85/0.74, which country it is Indirect Quote

A. India
B. USA
C. UK
D. Japan
Correct Japan

5 1GBP=SGD 2.8272-82, which is the Base currency in this quote

A. GBP
B. USD
C. INR
D. SGD
Corr GBP

6 CHF/USD 1.2325-35, for which currency it is Indirect Quote

A. India
B. USA
C. UK
D. Switzerland
Correct Switzerland

7 1GBP=USD 1.7412/1.7418, which country it is Direct Quote

A. GBP
B. USD
C. INR
D. SGD
Corr USD
8 1 AUD/EUR = 0.6733-43, which country it is Indirect Quote
A. India
B. USA
C. UK
D. Australia
Correct Australia