Practice Foreign Exchange Questions and Answers
- An Indian exporter receives a payment of USD 50,000 when the exchange rate is ₹83/USD. At the year-end, the rate drops to ₹80/USD and the amount is sti...
- A foreign subsidiary reports its accounts in USD. On consolidation, the holding company translates the figures into INR. Which rate should be used for inco...
- Beta Ltd., an Indian company, operates a 100% subsidiary in the UAE. The subsidiary manufactures and sells products only in the Gulf region, incurs costs a...
- A company revalues its foreign currency receivable at the closing rate on balance sheet date. Under which Ind AS is this required?
- An Indian company receives a large export order payable in USD after 6 months. The management fears rupee appreciation in this period. To hedge the risk, t...
- An importer based in India has a large payment to make in EUR after 2 months. To reduce exchange rate risk, the firm buys a European Call Option with a str...
- A firm in India has to pay €5 million in 3 months. They expect the rupee to depreciate against the euro. Which of the following hedging tools will best p...
More Topics
- Accounts Questions
- Auditing Questions
- Banking Operations Questions
- Bills of Exchange Questions
- Bonds Questions
- Capital Budgeting Questions
- Commerical Law Questions
- Costing Concepts Questions
- Depreciation Questions
- Financial Statement Analysis Questions
- Forming base to Accounts Questions
- GST Questions
- NBFC Credit PSL Questions
- Presentation of Company Financial Statements Questions
- Taxation Related Questions
