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 5 of 13

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Q41.
What is one of the key activities of the IMF to improve the economies of its member countries?

a.

Providing long-term loans

b.

Surveillance of members' economies

c.

Direct investment in member countries

d.

Creating trade barriers

Discuss
Answer: (b).Surveillance of members' economies Explanation:One of the key activities of the IMF is the surveillance of its members' economies to encourage self-correcting policies and improve economic conditions.
Q42.
What are the objectives of the IMF according to its role in the global monetary system?

a.

Foster global military alliances

b.

Promote high employment and sustainable economic growth

c.

Encourage economic self-sufficiency of member countries

d.

Eliminate international trade

Discuss
Answer: (b).Promote high employment and sustainable economic growth Explanation:One of the objectives of the IMF is to promote high employment and sustainable economic growth globally.
Q43.
How many countries are currently members of the IMF?

a.

100

b.

150

c.

188

d.

50

Discuss
Answer: (c).188 Explanation:The IMF is currently an organization of 188 countries working together for global economic cooperation and stability.
Q44.
What were the IMF's two primary functions initially?

a.

Managing global military alliances

b.

Overseeing Fixed Exchange Rate arrangement and providing short-term capital

c.

Promoting economic self-sufficiency

d.

Encouraging international trade

Discuss
Answer: (b).Overseeing Fixed Exchange Rate arrangement and providing short-term capital Explanation:Initially, the IMF's two primary functions were overseeing Fixed Exchange Rate arrangement and providing short-term capital to member countries.
Q45.
When did the IMF's role fundamentally change?

a.

1950

b.

1960

c.

1971

d.

1980

Discuss
Answer: (c).1971 Explanation:The IMF's role fundamentally changed after the introduction of the Floating Exchange Rates post-1971.
Q46.
What was the IMF's main role after the introduction of Floating Exchange Rates?

a.

Managing global military alliances

b.

Examining economic policies of countries with IMF loan agreements

c.

Eliminating international trade

d.

Encouraging economic self-sufficiency

Discuss
Answer: (b).Examining economic policies of countries with IMF loan agreements Explanation:After the introduction of Floating Exchange Rates, the IMF's main role shifted to examining the economic policies of countries with IMF loan agreements.
Q47.
What is the new challenge for the IMF in its major function?

a.

Encouraging economic self-sufficiency

b.

Ensuring fixed exchange rates

c.

Reducing the frequency and severity of financial and economic crises

d.

Managing global military alliances

Discuss
Answer: (c).Reducing the frequency and severity of financial and economic crises Explanation:The new challenge for the IMF is to reduce the frequency and severity of financial and economic crises, especially in developing or underdeveloped countries.
Q48.
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.
Q49.
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.
Q50.
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.
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