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 3 of 13

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Q21.
What are the roles of the International Monetary Fund (IMF) and the World Bank in the international monetary system?

a.

Enforcing exchange rates

b.

Facilitating international credit creation

c.

Accelerating implementation of domestic policies

d.

Creating a closed financial system

Discuss
Answer: (b).Facilitating international credit creation Explanation:The IMF and the World Bank were created to accelerate the implementation of the plan and facilitate international credit creation among other roles.
Q22.
What has contributed phenomenally to the growth of the global financial market in the last six decades?

a.

Regional conflicts

b.

Second World War

c.

International finance

d.

Domestic financial policies

Discuss
Answer: (b).Second World War Explanation:The enormous growth in international trade and commerce is attributed to the period following the Second World War.
Q23.
Why does the study of financial management remain incomplete?

a.

Lack of domestic financial policies

b.

Lack of understanding of global financial markets

c.

Emphasis on regional economies

d.

Limited focus on international finance

Discuss
Answer: (d).Limited focus on international finance Explanation:The study of financial management remains incomplete without a thorough understanding of global financial markets, global finance, and related issues in the global context.
Q24.
What has made the international economy a single complex organism?

a.

Regional production

b.

Integration of economies of almost all nations

c.

Domestic trade policies

d.

Isolationist economic strategies

Discuss
Answer: (b).Integration of economies of almost all nations Explanation:The integration of economies of almost all nations has made the international economy a single complex organism.
Q25.
What is the most important constituent of the international economy?

a.

Balance of payments

b.

Forex market

c.

Foreign trade

d.

International capital market

Discuss
Answer: (c).Foreign trade Explanation:Foreign trade is one of the most important constituent of the international economy.
Q26.
What are the top two trading partners of the United States, as per statistics of 2006-07?

a.

China and Japan

b.

Canada and Mexico

c.

Germany and UK

d.

India and South Korea

Discuss
Answer: (b).Canada and Mexico Explanation:The top two trading partners of the United States are Canada and Mexico as per statistics of 2006-07.
Q27.
What are the three core economic functions that have become highly globalized in recent decades?

a.

Distribution, manufacturing, and innovation

b.

Consumption, production, and investment

c.

Marketing, research, and development

d.

Supply chain, logistics, and financing

Discuss
Answer: (b).Consumption, production, and investment Explanation:Consumption, production, and investment have become highly globalized.
Q28.
What opportunity has increasing international financial integration provided to investors?

a.

Limited investment options

b.

Reduced investment portfolios

c.

Diversification and expansion of investment portfolios by investing abroad

d.

Localized investment strategies

Discuss
Answer: (c).Diversification and expansion of investment portfolios by investing abroad Explanation:Increasing international financial integration has afforded investors the opportunity to diversify and expand their investment portfolios by investing abroad.
Q29.
What is the recommended basis for valuing transactions entering the Balance of Payments (BoP) account, according to the IMF manual?

a.

Historical cost

b.

Face value

c.

Market prices

d.

Book value

Discuss
Answer: (c).Market prices Explanation:The IMF manual recommends that transactions entering the BoP account should be valued at market prices, defined as the amount of money a willing buyer pays to acquire something from a willing seller when commercial considerations alone are involved.
Q30.
How are both imports and exports valued in the Balance of Payments (BoP) according to the IMF manual?

a.

Imports are valued at market prices, and exports are valued at face value

b.

Both imports and exports are valued at free on board (FOB) basis

c.

Imports are valued at book value, and exports are valued at market prices

d.

Both imports and exports are valued at historical cost

Discuss
Answer: (b).Both imports and exports are valued at free on board (FOB) basis Explanation:The IMF manual recommends that both imports and exports should be valued at free on board (FOB) basis. This means the price paid for the insurance and shipment of goods should not be included as part of the value of goods.
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