MNB3701 EXAM PACK 2025

MNB3701

EXAM
PACK

2025

, lOMoARcPSD|19139637




Question1
Correct
Mark 1.00 out of 1.00

Flag question

Question text
The fundamental principle of minimizing exchange risk is to ensure that ___________.
a.
a firm realises its financial and non-financial targets.
b.
a firm prioritise currencies with low exchange rates.
c.
the future revenue and expenses are in the same currency.
d.
the expenses and costs are kept to minimum.
Feedback
The correct answer is: the future revenue and expenses are in the same currency.

Question2
Correct
Mark 1.00 out of 1.00

Flag question

Question text
The World Trade Organisation (WTO) aims to eliminate discrimination between trading
partners by____________.
a.
determining the exchange rates between nations.
b.
establishing rules for resolving trade-related conflicts between multinational
businesses.
c.
establishing rules for resolving trade-related conflicts between nations.
d.
determining the landing rates between nations.
Feedback
The correct answer is: establishing rules for resolving trade-related conflicts between
nations.

Question3
Correct
Mark 1.00 out of 1.00

Flag question

Question text
The international monetary system that maintain a flexible exchange rate policy with no
common denominator is known as _________
a.




Downloaded by Jonah Njuguna ()

, lOMoARcPSD|19139637




The gold standard
b.
The Bretton Woods system
c.
The European Financial system
d.
The post-Bretton Woods system
Feedback
The correct answer is: The post-Bretton Woods system

Question4
Correct
Mark 1.00 out of 1.00

Flag question

Question text
A multinational business wishing to exploit its copyrights in another country can protect
itself through____________.
a.
General Agreement on Trade in Services.
b.
Trade Dispute Settlement Mechanism
c.
Trade-related Aspects of Intellectual Property Rights.
d.
General Agreement on Tariffs and trade.
Feedback
The correct answer is: Trade-related Aspects of Intellectual Property Rights.

Question5
Correct
Mark 1.00 out of 1.00

Flag question

Question text
The IMF loans to countries often comes with measures aimed at fighting the source of
macroeconomic imbalances. This is commonly known as IMF _____________.
a.
loan condition
b.
conditionality
c.
trade agreement
d.
financing conditions
Feedback
The correct answer is: conditionality

6
Question




Downloaded by Jonah Njuguna ()

, lOMoARcPSD|19139637




Correct
Mark 1.00 out of 1.00

Flag question

Question text
Counter party risk means that ____________.
a.
a firm will face high exchange rate when it pays with its domestic currency.
b.
a firm will face risk when its business partner, such as a bank, fails to fulfil hedging
contract.
c.
a firm will lose its capital when the dollar improves.
d.
a firm will face risk when they involve partners, such as a bank, in a transaction.
Feedback
The correct answer is: a firm will face risk when its business partner, such as a bank,
fails to fulfil hedging contract.

Question7
Correct
Mark 1.00 out of 1.00

Flag question

Question text
The primary mandate of the International Monetary Fund (IMF) is to ______________.
a.
provide temporary financial assistance to member countries.
b.
fund large projects of multinational organisations.
c.
provide temporary financial assistance to multinational businesses.
d.
fund development projects of developing countries.
Feedback
The correct answer is: provide temporary financial assistance to member countries.

Question8
Correct
Mark 1.00 out of 1.00

Flag question

Question text
The reason some countries would support strong dollar as a trading and reserve
currency is because they ___________.
a.
expect capital gain if dollar improves.
b.




Downloaded by Jonah Njuguna ()