Question: Hello, really need help with this MCQ ! Thanks a lot ! 1)Risk, as a distinct uncertainty considers: a.A maximas approach b.A maximin approach c.A

Hello, really need help with this MCQ ! Thanks a lot !

1)Risk, as a distinct uncertainty considers:

a.A maximas approach

b.A maximin approach

c.A quantitative approach

d.A qualitative approach

2)Which of the following is not a source of finance risk?

a.Exchange rates

b.Credit terms

c.Marketing risk

d.Interest rates

3)The exchange rate equivalency model excludes which of the following?

a.International Fisher Effect

b.International Fletcher Effect

c.Expectancy Theory

d.Interest Rate Parity Theory

4)Interest rate risk is not faced by:

a.Ordinary shareholders

b.Borrowers

c.Lenders

d.Debenture holders

5)Exchange rate risk does not include:

a.Transposition risk

b.Economic risk

c.Transaction risk

d.Translation risk

6)Financial risk management includes hedging techniques which do not include:

a.Foreign exchange swaps

b.Forward interest rate agreements (FRA)

c.Foreign exchange fixed forward contracts

d.Foreign exchange options forward contracts

7)Examples of financial derivatives do not include:

a.Loansb.Options

c.Futures

d.Swaps

8)A traded option may be:

a.A European option

b.A call option

c.A put option

d.An American option

9)A futures contract is not:

a.Tradeable

b.A standardizes contract

c.Priced using ticks

d.Protection against downside risk

10) A swap is not:

A futures contract

a.A hedging technique

b.A flexible derivative

c.A protection against downside interest or exchange rate risk

11) Which ratio does not assess liquidity

a.Quick ratio

b.Current ratio

c.Acid test

d.Return of capital

12) The risk that borrowers are unable to repay their loans on time is

a.Currency risk

b.Liquidity risk

c.Credit risk

d.Interest rate risk

13) The type of risk in which payments are interrupted by the intervention of foreign governments is considered as

a.Channel risk

b.Globalization risk

c.State risk

d.Country risk

14) The risk arises from trding of asses because of change in asset prices and exchange rates is classified as

a.Asset risk

b.Trade risk

c.Market risk

d.Exchange risk

15) The risk faced by financial institutions in which advancement of technology does not produce savings in cost is classified as

a.Savings risk

b.Advance risk

c.Cost risk

d.Technology risk

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