International Financial Management MULTIPLE CHOICE QUESTIONS for CPD Exam, FM MCQ

 International Financial Management MULTIPLE CHOICE QUESTIONS for CPD Exam, FM MCQ

1.   Foreign trade means

a.      Enter pot trade

b.     Export trade

c.      Import trade

d.     All the above

 

2.   Enterpot trade refers to

a.      Buying for own consumption

b.     Buying for exporting

c.      Exporting goods to foreign country

d.     Importing goods from other country.

e.       

3.   Sequence in import is

a.      Placing the indent, import license, foreign exchange

b.     Import license, foreign exchange, placing the indent

c.      Foreign exchange, placing the indent, import license

d.     Import license, placing the indent, foreign exchange.

 

4.   Forward agent is appointed by

a.      Clearing agent

b.     Exporter

c.      Importer

d.     Clearing house

 

5.   GATT was established in

a.      1996

b.     1948

c.      1947

d.     None of the above

 

6.   When export exceeds imports, the balance of trade is

a.      Favorable

b.     Unfavorable

c.      Neither favorable not unfavorable

 

7.   When custom duty is levied according to the value of goods, it is known as

a.      Revenue duty

b.     Excise duty

c.      Specific duty

d.     Ad-velarem duty

 

8.   When custom duty is levied according to the weight of goods, it is known as

a.      Revenue duty

b.     Excise duty

c.      Specific duty

d.     Ad-velarem duty

 

9.   Import procedure begins with

a.      Mate’s receipt

b.     Marine insurance

c.      Indent

d.     Shipping bill

 

10.     A ‘closed’ indent is one that

a. Specifies the brand of goods ordered, the price and other details

b.Does not specify the brand, price and their details

c. Leaves the brand, price and other details to the discretion of the buyer in the importing country

d.Leaves the brand, price and other details to the discretion of the seller in the importing country.

 

11.     An indent house is one which

a. Serves as middleman between importer and exporter of goods for getting order.

b.Packs and forwards goods.

c. Guarantees the payment of goods

d.Performs custom formalities on behalf of importer

 

12.     A ‘letter of credit’ is produced by

a. An exporter

b.An importer

c. Custom authorities

d.Shipping company

 

13.     LOCO price quoted includes

a. Cost of goods plus a normal profit

b.All costs and charges for placing the goods near the ship, including railway freight

c. Cost of goods plus cost of loading the goods on the board of the ship

d.Cost of goods, cost of loading and freight charges

 

14.     Which of the following price quotations include all charges and expences necessary for sending the goods to the buyer’s places of business?

a. C.I.F

b.F.O.B

c. FRANCO

d.F.A.S

 

15.     If complete ship is hired, the shipping company issues

a. Shipping order

b.Charter party

c. Bill of entry

d.R/R

 

16.     A consular invoice testifies

a. That import duty has been paid

b.The true value of goods for the purpose import duty

c. The origin of exports

d.That importer wishes to re-export the goods

 

17.     Which of the following is a document of the title to the goods?

a. Bill of lading

b.Bill of entry

c. Certificate of origin

d.Letter of credit

 

18.     A consul is appointed by the govt to

a. Collect custom duty on goods imported

b.Take charge of smuggled goods

c. Stay in foreign country for looking after the trade and commercial interest of his own country

d.Stay in own country for looking after the business interest in foreign trade.

 

19.     A letter of credit means

a. A letter sent by importer to exporter sanctioning credit deal

b.A letter sent by exporter to importer sanction credit deal

c. A letter containing conditions of credit purchase or sale

d.A bank agreeing to accept and pay on due date

 

20.     The importer cannot take delivery of goods unless he produces the

a. Bill of sight

b.Bill of lading

c. Shipping bill

d.Mate’s receipt

 

21.     EXIM bank can be described as a

a. Non-banking financial company

b.Commercial bank

c. Non-banking non-financial company

d.Scheduled bank

e.  

 

22.     Caveat emptor means

a.      Let the seller beware

b.     Let the buyer beware

c.      Let the producer beware

d.     None of the above

 

23.      In which year the Indian contract act was passed

a.      1882

b.     1872

c.      1972

d.     1996

 

24.      An acceptance once posted –

a.      Cannot be revoked under English law

b.     Can be revoked under English law

c.      Cannot be revoked

d.     None of the above

 

25.     Material cost variance is due to

a. Change in price of material

b.Change in quantity used

c. Change in material mix

d.All the above

 

 

 

 

 

 

Key answers

1.   (d) All the above

2.   (b) Buying for exporting

3.   (d) Import license, placing the indent, foreign exchange

4.   (b) exporter

5.   (b) 1948

6.   (a) favorable

7.   (d) Ad-velarem duty

8.   (c ) Specific duty

9.   (c ) Indent

10.  (a) Specifies the brand of goods ordered, the price and other details

11.  (a) Serves as middleman between importer and exporter of goods for getting order

12.  (b) An importer

13.  (a) Cost of goods plus a normal profit

14.  (c ) FRANCO

15.  (b) Charter party

16.  (b) The true value of goods for the purpose import duty

17.  (a) Bill of lading

18.  (c ) Stay in foreign country for looking after the trade and commercial interest of his own country

19.  (a) A bank agreeing to accept and pay on due date

20.  (b) Bill of lading

21.  (c ) Non-banking non-financial company

22.  (b) (b) let the buyer beware

23.  (b) 1872

24.  (b) Cannot be revoked under English law

25.  (d) All the above