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 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.
Q42.
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.
Q43.
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.
Q44.
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.
Q45.
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.
Q46.
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.
Q47.
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.
Q48.
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.
Q49.
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.
Q50.
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.
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