International Finance Quiz - 1

1. Naked position is when investor does not hedge against market risk.
[A]TRUE
[B]FALSE



2. In forward sales, the delivery refers to actual cash flows on due date.
[A]TRUE
[B]FALSE



3. An AD can book a forward contract for a part of the amount of Sale Contract
[A]TRUE
[B]FALSE



4. The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total.
[A]TRUE
[B]FALSE



5. Floating rate notes are traded in secondary market also.
[A]TRUE
[B]FALSE



6. The amount in EEFC account can be deposited in FCNR account to get interest.
[A]TRUE
[B]FALSE



7. Indian companies are now allowed to freely invest abroad up to $1.5 million, raised through GDE or EEFC without prior permission from RBI.
[A]TRUE
[B]FALSE



8. In an interest rate swap if the payment schedules are identical, only diffrence between the two payments is delivered.
[A]TRUE
[B]FALSE



9. An Indian party which has made direct investment abroad has to submit a annual performance report in form ARP-1 to RBI.
[A]TRUE
[B]FALSE



10. With the advent of futures and Options there is no need for additional instruments of risk hedging.
[A]TRUE
[B]FALSE



11. Services of a Paying bank are taken when currencies of exporters country or the importers country is not involved in the transaction.
[A]TRUE
[B]FALSE



12. Sandby credis are introduced by US Banks because they were not permitted to issue on demand guarantees.
[A]TRUE
[B]FALSE



13. Installment credit is issued for specific quantities of goods to be shipped every week or month.
[A]TRUE
[B]FALSE



14. The credit rating of World Bank is high in the world Capital market because it operates at the debt equity ratio of 1:2
[A]TRUE
[B]FALSE



15. Phytosanitary/ Radiation/Fumigation certificates are in the category of Health Certificates
[A]TRUE
[B]FALSE