Match the following :
List – I List – II a. Banks that conduct trading in market for Euro currencies 1. Euro currencies b. Deposits denominated and payable in dollars and other foreign currencies in banks outside USA 2. SDRs c. Dollar deposits located in banks outside US 3. Euro banks d. Currency baskets composed of five currencies of IMF members 4. Euro dollars
Codes :
a-3, b-1, c-4, d-2
Matching Financial Market Terms
This section matches financial terms from List I with their correct definitions in List II.
Understanding the Terms:
- a. Banks that conduct trading in market for Euro currencies are known as Euro banks (3). These banks facilitate currency trading outside the home country of the currency.
- b. Deposits denominated and payable in dollars and other foreign currencies in banks outside USA represent Euro currencies (1). This is a broad category for currencies held outside their country of origin.
- c. Dollar deposits located in banks outside US specifically refers to Euro dollars (4). This is a specific type of Euro currency focusing on US dollars held in foreign banks.
- d. Currency baskets composed of five currencies of IMF members are SDRs (2) (Special Drawing Rights), an international reserve asset.
Final Matching:
The correct matches are:
- a - 3 (Euro banks)
- b - 1 (Euro currencies)
- c - 4 (Euro dollars)
- d - 2 (SDRs)
This combination aligns with Option B.
Important Questions from Foreign exchange market
In which year did the companies IBM and Coca Cola shut down their operations for not being able to comply with the Foreign Exchange Regulation Act that mandated foreign investors cannot own over 40% in Indian enterprises?
Identify the drivers for increased Foreign Institutional Investment flows in Indian stock markets in recent times
A. Covid-19 pandemic driven liquidity outflows from the western capital markets
B. Geopolitical supply chain relocations
C. Increased India weightage in MSCI Emerging Market Index
D. Steep decline in interest rates in large market friendly economies
E. Favourable risk-reward ratios in Indian stock markets
Choose the correct answer from the options given below:
Which of the following constitutes Foreign Direct Investment?
Arrange the following modes of entry in foreign markets starting with the mode of entry having least commitment, risk, control and profit potential:
(A) Company hires a local manufacturer to produce the product.
(B) Company starts exports working through domestic export agents and exports management companies.
(C) Company joins hands with local investor and forms a company in which both share ownership and control.
(D) Company starts export using domestic export department and overseas sales branch.
(E) Company offers a complete brand concept and operating system to an investor in return of certain fee.
Choose the correct answer from the options given below:
Given below are two statements: One is labelled as Assertion A and the other is labelled as Reason R.
Assertion (A): Sustained current account surplus encourages the government to liberalize imports and capital movements.
Reasons (R): The current account and balance of payments positions of a country can significantly influence its economic policies.
In the light of the above statements, choose the correct answer from the options given below:
