Institute of Chartered Financial Analysts of India (ICFAI) University 2006 Certification Finance International and Trade – I - Question Paper

three months
0.8176/0.8181


The rate quoted to a bank that wants to purchase Euro for choice delivery over third month, the forward margin will be

(a) 0.114 (b) 0.525 (c) 0.857 (d) 0.866 (e) 0.967.
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6.
International trade leads to mutual gain because it enables every country to

I. Export all products in which it has an absolute advantage.

II. Specialize in products that have a higher opportunity cost relative to other countries.

III. Import goods at a cost lower than it would produce domestically.

(a) Only (II) above (b) Both (I) and (II) above

(c) Both (I) and (III) above (d) Both (II) and (III) only

(e) All (I), (II) and (III) above.
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7.
Which of the subsequent is not correct?

(a) Important function of the IMF is to give reserve credit to the member countries facing temporary balance of payment issue

(b) Oil facility is a kind of IMF lending

(c) International Development Authority (IDA) endeavors to finance those projects in developing countries, which may not be financially profitable

(d) International Finance Corporation (IFC) insists on government guarantee for financing projects

(e) International Finance Corporation (IFC) helps the development of private sector in various countries.
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8.
A dealer obtained that he has over bought HK$ by five million. The market quote is Rs/HK$ 5.80/5.85. To ensure a square position he should

(a) Increase the bid rate and reduce the ask rate

(b) reduce the bid rate and increase the ask rate

(c) Increase both bid and ask rates above the market quotes

(d) reduce both bid and ask rates beneath the market quotes

(e) Enter into a forward contract for sale.

Earning:   Approval pending.