International Finance MCQ With Answers PDF: International finance or international financial management or global finance is the study, research, and management of financial decision-making involving multi-national companies, multinational corporations (MNCs), international organizations, and countries. It involves 4 basic concepts: assets, capital markets, currency management, and risk management. International finance creates a vast array of opportunities for job seekers who want to make a career in various international financial services firms/banking corporations or consultancies.

These international finance MCQs with answers are most valuable to you. These solved IF multiple-choice questions are helpful to MBA, BBA, IBM, MMS, PGDM, B Com, M Com, and other management and commerce students. These recently updated MCQs will help in UPSC, UGC NET, SET, MPSC, Ph.D., and other entrance exam preparation. These latest International Finance MCQ sets are equally useful for other subjects like Global Finance, International Trade Finance, International Financial Management, and international banking.

International Finance MCQ With Answers

1. India is facing a continuous deficit in its balance of payments in the foreign exchange market rupee is expected to _______

A. Appreciate

B. Depreciate

C. Show no specific tendency

D. All of the above

Answer: Depreciate

2. _____ is not a characteristic of speculation.

A. Hedging

B. Risk-taking

C. Profit motive

D. Exchange rate fluctuation

Answer: Hedging

3. The responsibility for the administration of FEMA is vested with ________

A. Central government

B. State government

C. RBI

D. National banks

Answer: RBI

4. A source of supply of foreign exchange is ________

A. Imports

B. Exports

C. Donations

D. Gifts

Answer: Exports

5. The foreign direct investment includes __________

A. tangible good

B. intangible good

C. intellectual property

D. human resources

Answer: tangible good

6. The three disputes of FDI are over _______

A. hobby

B. interest

C. regard

D. concern

Answer: interest

7. More expansion of foreign direct investment can boost _______

A. demand

B. money circulation

C. employment

D. unemployment

Answer: employment

8. Who determines foreign exchange rates in India?

A. RBI

B. FEDAI

C. market forces of demand and supply

D. finance ministry of India

Answer: market forces of demand and supply

9. Who regulates foreign trade in India?

A. SEBI

B. FEDAI

C. RBI

D. DGFT

Answer: SEBI

10. The statutory authority which administers the exchange control in India _____

A. RBI

B. ministry of commerce

C. DGFT

D. FEDAI

Answer: RBI

11. The main objective of international financial Management is to arrange sufficient funds for meeting the _____________ goals of an organization.

A. short term

B. long term

C. medium term

D. all of the above

Answer: all of the above

12. Which Indian industries have been hit by globalization?

A. Jute

B. toy making

C. information technology

D. cement

Answer: toy making

13. When did government remove the barrier to investment in India?

A. 1193

B. 1992

C. 1991

D. 1990

Answer: 1991

14. Foreign income received in India during the previous year is taxable in the case of ________

A. Non resident

B. resident

C. not ordinarily resident

D. all of the above

Answer: all of the above

15. CCIL stands for __________

A. The clearance code of India

B. The clearing corporation of India

C. The clearing committee of India

D. The clearing consignment of India

Answer: The clearing corporation of India

16. ______ refers to converting illegal money into legitimate money.

A. money laundering

B. tax evasion

C. black money

D. demonetization

Answer: money laundering

17. If portable devices made in India are imported into the United States, the Indian manufacturer is paid with _______

A. euros

B. dollars

C. international monetary credits

D. rupees

Answer: rupees

18. Which of the following is known as paper gold?

A. Bitcoin

B. US dollar

C. demand draft

D. special drawing right

Answer: special drawing right

19. Tax on imports can be treated as _______

A. foreign trade

B. collateral trade

C. trade barriers

D. terms of trade

Answer: trade barriers

20. IMS is the full form of _________

A. International monetary source

B. International monetary system

C. International monetary structure

D. International monetary society

Answer: International monetary system

21. ____offers the exporter the greatest level of safety.

A. Cash in advance

B. Letter of credit

C. Wire transfer

D. UPI

Answer: Letter of credit

22. The globalization of business activities has _________ the complexity as well as the importance of the financial managers’ duties.

A. Increased

B. Decreased

C. Ignored

D. Vanished

Answer: Increased

23. Due to globalization, the financial management function has become _________.

A. Less demanding and complex

B. More demanding and complex

C. Less important and complex

D. Outdated and complex

Answer: More demanding

24. International finance mainly discusses the issues related with monetary interactions of at least__________.

A. one country

B. two or more countries

C. five countries

D. None of the above

Answer: two or more countries

25. International finance is concerned with__________

A. exchange rates of currencies

B. monetary systems of the world

C. foreign direct investment

D. all of the above

Answer: all of the above

26. ________ maintains the foreign exchange reserves in India?

A. State Bank of India

B. Reserve Bank of India

C. Finance Ministry of India

D. EXIM India

Answer: Reserve Bank of India

27. India’s foreign exchange rate system is _______

A. Fixed target of band

B. Free float

C. Fixed system

D. Managed float

Answer: Managed float

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