Management MCQs

At present the role of IMF in the exchange rate policies of its members is to

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A. prohibit floating rate
B. have surveillance and express opinion on policies
C. restrict the exchange fluctuations within a band
D. prohibit fixed rate
✅ The correct answer is option B.
At present the role of IMF in the exchange rate policies of its members is to have surveillance and express opinion on policies. The International Monetary Fund (IMF) is an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

Pegging the value of a currency can be done by

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A. pegging to a major currency
B. pegging to a basket of currencies
C. pegging to SDR
D. any of the above
✅ The correct answer is option D.
Pegging is controlling a country’s currency rate by tying it to another country’s currency or steering an asset’s price prior to option expiration. Pegging the value of a currency can be done by pegging to a major currency or pegging to a basket of currencies or pegging to SDR.

Information systems can facilitate supply chain management by ______________.

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A. Tracking the status of orders
B. Rapidly communicating orders
C. Providing product specifications
D. Doing all of the above
✅ The correct answer is option D.
Information systems can facilitate supply chain management by tracking the status of orders, rapidly communicating orders and providing product specifications.

In manufacturing companies, revenue and cost drivers are categorized under

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A. variable costs
B. costs of goods sold
C. number of units sold
D. all of above
✅ The correct answer is option C.
In manufacturing companies, revenue and cost drivers are categorized under number of units sold. Revenue and cost drivers are the individual elements that make up those gross numbers. They are different in each business model. Most managers usually can identify specific drivers, but they often don’t use them as key management tools.

The major players in the foreign exchange market are.

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A. commercial banks
B. corporates
C. exchange brokers
D. central bank of the country and the Central Government
✅ The correct answer is option C.
The major players in the foreign exchange market are exchange brokers. A foreign exchange broker (also known as an FX broker or a forex broker) buys and sells currencies on behalf of clients while charging a commission for the service.

A computer security protocol for logging in would be an example of the component of an information system ____________.

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A. Software
B. Hardware
C. Data
D. Procedure
✅ The correct answer is option D.
A computer security protocol for logging in would be an example of the component of an information system Procedure. Procedures are the policies that govern the operation of a computer system. “Procedures are to people what software is to hardware” is a common analogy that is used to illustrate the role of procedures in a system.

Financial instruments traded in money markets are then traded in

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A. money markets
B. capital markets
C. debt markets
D. economic markets
✅ The correct answer is option B.
Financial instruments traded in money markets are then traded in capital markets. Financial instruments are assets that can be traded, or they can also be seen as packages of capital that may be traded. Most types of financial instruments provide efficient flow and transfer of capital all throughout the world’s investors.

Consider buying put option, if price is lower at expiration date of option then the

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A. liquidity will be higher
B. loss will be higher
C. profit will be lower
D. profit will be higher
✅ The correct answer is option D.
Consider buying put option, if price is lower at expiration date of option then the profit will be higher. A person would buy a put option if they expected the price of the underlying futures contract to move lower. A put option gives the buyer the right to sell the underlying futures contract at an agreed-upon price called the strike price any time before the contract expires.