# MCQ for CA Final SFM - Chapter 6 Foreign Exchange Exposure and Risk Management

Sample Multiple Choice Questions (MCQ's) for CA Final - Paper 2 - Strategic Financial Management - Chapter 6: Foreign Exchange Exposure and Risk Management - For Practice relevant for May/Nov 23 Examinations

#### Further, if the deal is struck, what would be the equivalent US\$ amount

1. US\$ 2,95,250
2. US\$ 2,95,050
3. US\$ 2,92,050
4. US\$ 2,90,550

#### Calculate cover rate and ascertain the profit or loss in the transaction. Ignore brokerage

1. Profit Rs. 529000
2. Profit Rs. 29000
3. Profit Rs. 290000
4. Profit Rs. 590000

1. 5.63%
2. 5.33%
3. 3.33%
4. 3.63%

1. \$ 60.5
2. \$ 61.5
3. \$ 62.5
4. \$ 65.5

1. \$ 60.5
2. \$ 61.5
3. \$ 62.5
4. \$ 65.5

#### Q:6 On April 1, 3 months interest rate in the UK £ and US \$ are 7.5% and 3.5% per annum respectively. The UK £/US \$ spot rate is 0.7570. What would be the forward rate for US \$ for delivery on 30th June?

1. UK £0.6745 / US\$
2. UK £0.7645 / US\$
3. UK £0.7750 / US\$
4. UK £0.7754 / US\$

#### For excess or balance of JY covered, the firm would use forward rate as future spot rate.

1. Rs.235000
2. Rs.253000
3. Rs.253500
4. none of these

1. Rs.2500
2. Rs.3500
3. Rs.2800
4. Rs.2700