Foreign Exchange Transactions Multiple Choice Questions with Answers – PDF Download

MCQ 1: The larger fluctuations in portfolio value of foreign exchange of financial institutions leads to:

1. greater liquidity of assets
2. greater volatility of rates
3. lesser volatility of rates
4. lesser liquidity of assets

MCQ 2: The services such as commercial trade transactions and positions in financial investments provided by financial institutions are classified as:

1. trade services
2. investment services
3. agent services
4. commercial services

MCQ 3: For a foreign exchange of specific currency, the non-hedged position is classified as:

1. open position
2. close position
3. currency long position
4. currency short position

MCQ 4: The position which came in to existence because of holding assets less than liabilities is considered as:

1. net surplus in assets
2. net surplus in liabilities
3. net long in currency
4. net short in currency

MCQ 5: The reasons for smaller exposure of foreign exchange than US money center are:

1. regulations
2. prudent individuals
3. smaller size of assets
4. all of the above