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 12 of 13

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Q111.
What does the International Financial System cover and include?

a.

Only domestic financial institutions

b.

Financial markets for international trade and exchange of currencies and more

c.

Historical events in international finance

d.

Agricultural trade and policies

Discuss
Answer: (b).Financial markets for international trade and exchange of currencies and more Explanation:The International Financial System covers and includes the complete range of interest and return-bearing assets, bank & non-bank financial institutions, and financial markets for international trade and exchange of currencies.
Q112.
What is facilitated by the international monetary system?

a.

Transfer of military technologies

b.

Conversion of national currencies into one another and more

c.

Space exploration

d.

Agricultural development

Discuss
Answer: (b).Conversion of national currencies into one another and more Explanation:The international monetary system facilitates the conversion of national currencies into one another, acquisition and liquidation of financial assets, and international credit creation and realization.
Q113.
What was established in 1947 to improve world trade?

a.

World Environmental Organization (WEO)

b.

International Finance Corporation ( IFC )

c.

General Agreement on Tariffs and Trade (GATT)

d.

Global Peace Council ( GPC )

Discuss
Answer: (c).General Agreement on Tariffs and Trade (GATT) Explanation:In 1947, the General Agreement on Tariffs and Trade (GATT) was established to improve world trade.
Q114.
What replaced GATT in 1995?

a.

International Monetary Fund (IMF)

b.

World Health Organization (WHO)

c.

World Trade Organization (WTO)

d.

United Nations (UN)

Discuss
Answer: (c).World Trade Organization (WTO) Explanation:GATT was replaced by the World Trade Organization (WTO) in 1995.
Q115.
What were some factors contributing to the 2007 financial crisis?

a.

Decline in global population

b.

Growing securitization of non-performing assets, large fiscal deficits, and more

c.

Advancements in space exploration

d.

Expansion of international cultural exchanges

Discuss
Answer: (b).Growing securitization of non-performing assets, large fiscal deficits, and more Explanation:The 2007 financial crisis originated from factors such as growing securitization of non-performing assets, large fiscal deficits, and excessive lending in the housing sector in the United States and other advanced nations.
Q116.
What is Foreign Direct Investment (FDI)?

a.

Indirect investment in stocks

b.

Investment in foreign bonds

c.

Direct investment into production or business in a country by an individual or company of another country

d.

Investment in agricultural projects

Discuss
Answer: (c).Direct investment into production or business in a country by an individual or company of another country Explanation:Foreign Direct Investment (FDI) is a direct investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding operations of an existing business in that country.
Q117.
What are the two types of FDI?

a.

External FDI and Internal FDI

b.

Inward and Outward FDI

c.

Short-term and Long-term FDI

d.

FDI in Services and FDI in Manufacturing

Discuss
Answer: (b).Inward and Outward FDI Explanation:There are two types of FDI: inward and outward, resulting in a Net FDI inflow or stock of foreign direct investment, which is the cumulative number for a given period.
Q118.
What are the various ways for FDI?

a.

Investment in foreign bonds only

b.

Only acquisition of foreign businesses

c.

Investment in the formation of a new corporate in the foreign country and more

d.

FDI is limited to joint ventures with existing foreign companies

Discuss
Answer: (c).Investment in the formation of a new corporate in the foreign country and more Explanation:Various ways for FDI include investment in the formation of a new corporate in the foreign country in the form of a branch or a subsidiary, greater investment in an existing foreign branch or subsidiary, and acquisition of a foreign business.
Q119.
Under what routes can an Indian company receive Foreign Direct Investment (FDI)?

a.

Government route only

b.

Automatic route or Government route

c.

Automatic route only

d.

FDI is not allowed in Indian companies

Discuss
Answer: (b).Automatic route or Government route Explanation:An Indian company may receive Foreign Direct Investment under the two routes: Automatic route or Government route.
Q120.
What is the Balance of Payment (BOP) account?

a.

A summary of stock market transactions

b.

A summary of economic transactions between the residents of a country and rest of the world

c.

A summary of government expenditures

d.

A summary of domestic trade transactions

Discuss
Answer: (b).A summary of economic transactions between the residents of a country and rest of the world Explanation:The Balance of Payment (BOP) account is the summary of the flow of economic transactions between the residents of a country and the rest of the world during a given time period.
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