Bank issued a document that authorizes the bearer to receive money from one of its foreign branches or from another bank abroad. What such document is called ?

Related Mcqs:

1. Suppose the State Bank purchases a Rs 1,000 government bond from you. If you deposit the entire Rs 1,000 in you bank what is the total potential change in the money supply as a result of the State Bank’s action if the your bank’s reserve ratio is 20 percent ?

   A. Rs 4,000
   B. Rs 5,000
   C. Rs 1,000
   D. Rs 0

2. What is called that bank which regularly accepts foreign currency-denominated deposits and makes foreign currency-denominated deposits and makes foreign currency loans ?

   A. Eurobank
   B. Foreign bank
   C. International Bank
   D. Multinational Bank

3. The record of a country’s imports and exports of of goods and services plus net investment incomes and current transfers of money to and from abroad, is called its ?

   A. balance of payments on current account
   B. visible trade balance
   C. balance of trade
   D. balance of payments

4. The record of country’s transfers of land inter-government payments and money sent by migrants to and from abroad is called its ?

   A. balance of payments
   B. capital account of the balance of payments
   C. financial account of the balance of payments
   D. balance of payments on current account

5. The record of a county’s transfers of shareholding property and bank deposits to and from abroad is called its ?

   A. financial account on the balance of payments.
   B. balance of payments
   C. balance of payments on current account
   D. capital account of the balance of payments

6. Government borrows in the form of promissory note to repay the bearer after some fixed days from the date of issue. How is called such borrowing ?

   A. Bond
   B. Treasury bill
   C. Term bound
   D. Securities

7. Investor engage in _____ when they move funds into foreign currencies in order to take advantage to interest rates abroad that are higher than domestic interest rates ?

   A. currency arbitrage
   B. interest arbitrage
   C. short positions
   D. long positions

8. Bearer cheque is ?

   A. Payable to anyone
   B. payable to person holding it
   C. payable through account only
   D. payable after specific period

9. A bank has excess reserves to lend but is unable to find anyone to borrow the money This will _________ the size of the money multiplier?

   A. reduce
   B. have no effect on
   C. increase
   D. double

10. Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium its balance of payments would move into a surplus position if there occurred in the nation a (an) ?

    A. decrease in the money supply
    B. increase in the money supply
    C. decrease in the money demand
    D. None of the above