Question: Question 1 : - In equilibrium position, spread between foreign and domestic rate of interest must be equal to spread of a ) domestic rates

Question 1:- In equilibrium position, spread between foreign and domestic rate of interest must be equal to spread of
a) domestic rates
b) forward rate
c) forward and spot exchange rates
d) spot rates
Question 2:- What is retiring a bill under rebate means?
a) Making a payment of the bill before the due date
b) Dishonoring of a bill
c) Making a payment of the bill after the due date
d) All of the above
Question 3:- The market value of a share is responsible for
a) The investment market
b) The government
c) Shareholders
d) The respective companies
Question 4:- International trade and domestic trade differ because of
a) Different government policies
b) Immobility of factors
c) Trade restrictions
d) All of these
Question 5:- Everything else being equal, the ______ the depreciation expenses is in a given year, the ______ a foreign project`s NPV will be
a) Higher, lower
b) higher, higher
c) lower, higher
d) none of these

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