International Financial Management MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on International Financial Management, a fundamental topic in the field of IC 89 Management Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our International Financial Management MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of International Financial Management mcq questions that explore various aspects of International Financial Management problems. Each MCQ is crafted to challenge your understanding of International Financial Management principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 89 Management Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our International Financial Management MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of International Financial Management. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your International Financial Management knowledge to the test? Let's get started with our carefully curated MCQs!

International Financial Management MCQs | Page 11 of 13

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Q101.
What is the IMF's major function in its renewed roles and responsibilities?

a.

Maintaining a position of oversight of only exchange rates

b.

Managing global military alliances

c.

Overseeing fixed exchange rates

d.

Surveillance of overall macroeconomic and managing economic policy of member countries

Discuss
Answer: (d).Surveillance of overall macroeconomic and managing economic policy of member countries Explanation:In its renewed roles and responsibilities, the IMF's major function is surveillance of overall macroeconomic and managing economic policy of member countries.
Q102.
Under the policy of conditionality, what can low-income countries borrow on?

a.

Concessional terms

b.

High-interest rates

c.

Fixed exchange rates

d.

Military alliances

Discuss
Answer: (a).Concessional terms Explanation:Under the policy of conditionality, low-income countries can borrow on concessional terms, which means a period of time with no interest rates.
Q103.
What is one of the major functions of the IMF?

a.

Overseeing military alliances

b.

Surveillance of the global economy

c.

Regulating banks

d.

Encouraging fixed exchange rates

Discuss
Answer: (b).Surveillance of the global economy Explanation:One of the major functions of the IMF is the surveillance of the global economy to oversee the international monetary and financial systems.
Q104.
How has surveillance evolved since the demise of the Bretton Woods System?

a.

Through the adoption of new obligations

b.

By changing the responsibilities from guardian to overseer

c.

By maintaining fixed exchange rates

d.

By reducing the number of member countries

Discuss
Answer: (b).By changing the responsibilities from guardian to overseer Explanation:Surveillance has evolved largely by changing the responsibilities from guardian to overseer of members' economic policies and financial policies.
Q105.
What was the role of the IMF in the wake of the financial crisis of 2007?

a.

Overseeing military alliances

b.

Implementing fixed exchange rates

c.

Regulating banks and financial institutions

d.

Maintaining economic cooperation

Discuss
Answer: (c).Regulating banks and financial institutions Explanation:In the wake of the financial crisis of 2007, the role of the IMF shifted to better regulate banks and other financial institutions.
Q106.
What was the policy action taken after the financial crisis of 2007?

a.

Implementing fixed exchange rates

b.

Averting a second Great Depression

c.

Reducing international cooperation

d.

Maintaining the status quo

Discuss
Answer: (b).Averting a second Great Depression Explanation:The decisive policy action taken after the financial crisis of 2007 was to avert a second Great Depression.
Q107.
What did the G-20 Leaders recognize at their Summit in Seoul in 2010?

a.

The need for military alliances

b.

The completion of Millennium Development Goals

c.

The progress toward external sustainability

d.

The end of economic growth

Discuss
Answer: (c).The progress toward external sustainability Explanation:At the Summit in Seoul in 2010, the G-20 Leaders recognized the progress toward external sustainability.
Q108.
What does the IMF assess based on the policy decision of the Seoul Summit in 2010?

a.

Progress toward internal sustainability

b.

The global consistency of national economic policies

c.

The need for fixed exchange rates

d.

The impact of military alliances

Discuss
Answer: (b).The global consistency of national economic policies Explanation:The IMF assesses the global consistency of national economic policies based on the policy decision of the Seoul Summit in 2010.
Q109.
What does international finance examine and explore?

a.

Military alliances

b.

Global environmental issues

c.

Dynamics of the global financial system, balance of payments, and more

d.

International cultural exchanges

Discuss
Answer: (c).Dynamics of the global financial system, balance of payments, and more Explanation:International finance examines and explores the dynamics of the global financial system, balance of payments, international monetary system, exchange rates, Foreign Direct Investment, and their contribution in international trade and commerce.
Q110.
What does the International Monetary System constitute?

a.

A set of international trade rules

b.

A network of military alliances

c.

An integrated set of money flows on account of foreign trade and more

d.

A global environmental protection agency

Discuss
Answer: (c).An integrated set of money flows on account of foreign trade and more Explanation:The International Monetary System constitutes an integrated set of money flows on account of foreign trade and inflow of cross border capital and the related financial institutions.
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