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 13 of 13

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Q121.
What are the three main components of the BOP account?

a.

Trade Account, Services Account, and Capital Account

b.

Domestic Account, Foreign Account, and Trade Account

c.

Current Account, Capital Account, and Official Reserves

d.

Financial Account, Investment Account, and Savings Account

Discuss
Answer: (c).Current Account, Capital Account, and Official Reserves Explanation:The BOP account has three main components: Current Account, Capital Account, and Official Reserves.
Q122.
What are the stated objectives of the IMF?

a.

Promote international environmental co-operation

b.

International trade in cultural goods

c.

Promote international economic co-operation, international trade, employment, exchange rate stability, and more

d.

Facilitate international sports events

Discuss
Answer: (c).Promote international economic co-operation, international trade, employment, exchange rate stability, and more Explanation:The IMF's stated objectives are to promote international economic co-operation, international trade, employment, exchange rate stability, and to provide financial resources and assistance to member countries to meet the BOP requirements.
Q123.
Under the 'Gold Standard' Financial System from 1873-1914, which of the below were used as Reserve Assets?

a.

Gold and Silver

b.

Gold and Pound

c.

Gold and Dollar

d.

Dollar, Mark and Pound

Discuss
Answer: (c).Gold and Dollar Explanation:During the 'Gold Standard' Financial System from 1873-1914, gold and certain major currencies, particularly the British Pound and later the U.S. Dollar, were used as reserve assets. Countries adhering to the gold standard agreed to fix the value of their currencies in terms of a specific quantity of gold. The central banks held gold reserves and sometimes other major currencies to support their monetary systems. The U.S. Dollar, backed by gold, gained prominence as a key reserve currency during this period. The gold standard aimed to provide stability to international trade and financial transactions by linking currency values to a fixed quantity of gold.
Q124.
In the _________________ , imports & exports of goods and services and unilateral transfer of goods & services are entered.

a.

Current Account

b.

Capital Account

c.

Reserve Account

d.

Balance on Merchandise Trade Account

Discuss
Answer: (a).Current Account Explanation:In the context of balance of payments, the statement "imports & exports of goods and services and unilateral transfer of goods & services are entered" refers to the Current Account. The Current Account captures the flow of goods, services, income, and unilateral transfers (gifts or aid) between a country and the rest of the world. It is a key component of the balance of payments, reflecting the economic transactions involving the exchange of real resources.
Q125.
The objective Is of the IMF includes:

a.

Promotion of international economic co-operation

b.

Exchange rate stability

c.

To provide financial resources and assistance to member countries to meet the BOP requirements

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:The objectives of the International Monetary Fund (IMF) include the promotion of international economic co-operation, exchange rate stability, and providing financial resources and assistance to member countries to meet the Balance of Payments (BOP) requirements.
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