Professional Documents
Culture Documents
True/False
Question NABARD does not provide Refinance for stocking &
distribution of Chemical Fertilisers.
Correct Answer False
Your Answer True
True/False
Question Non bank financial institutions undertake fund and
non fund based activities.
Correct Answer True
Your Answer False
True/False
Question Bank Guarantee can be Performance of financial
Guarantee.
Correct Answer False
Your Answer True
True/False
Question Most of the Indian PS Banks practice retail banking.
Correct Answer True
Your Answer False
True/False
Question IMF discourages excessive use of its resources by
imposing a surcharge on large loans.
Correct Answer True
Your Answer True
True/False
Question A Bill of Exchange is negotiable.
Correct Answer True
Your Answer True
True/False
Question The currency notes issued by RBI are legal tender
everywhere in India without any limit.
Correct Answer True
Your Answer True
True/False
Question Issuance of CD attracts reserve requirements.
Correct Answer False
Your Answer True
True/False
Question IDA does not lend to countries that are not in a
position to borrow from IBRD.
Correct Answer False
Your Answer False
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer True
Financial Institutions and Banking_9
Select The Blank
Question Kisan Vikas Patra are issued through ________.
Correct Answer Post Offices
Your Answer Post Offices
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer True
True/False
Question Small Savings are source of Capital Receipts for the
Government.
Correct Answer True
Your Answer False
True/False
Page 4
Financial Institutions and Banking_9
Question The Capital of NABARD is subscribed by World Bank.
Correct Answer False
Your Answer False
True/False
Question PFC has been persuading State Governments restructuring
of their power sector to make them viable.
Correct Answer True
Your Answer True
True/False
Question Under MIGA the World bank offers various forms of
Page 5
Financial Institutions and Banking_9
Political Insurance.
Correct Answer True
Your Answer True
True/False
Question SCICI is a member of the OTCEI.
Correct Answer True
Your Answer False
True/False
Question A Bill of Exchange is negotiable.
Correct Answer True
Your Answer True
True/False
Question HDFC was set up by NHB.
Correct Answer False
Your Answer False
True/False
Question In case of T-Bills potential investors have to put in
competitive bids.
Correct Answer True
Your Answer True
Page 6
Financial Institutions and Banking_9
True/False
Question Non bank financial institutions undertake fund and non
fund based activities.
Correct Answer True
Your Answer True
Page 7
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question PFC has been persuading State Governments restructuring of their power
sector to make them viable.
Correct Answer True
Your Answer True
True/False
Question The SFCs also borrow from SIDBI & IDBI.
True/False
Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.
True/False
Question NABARD is an apex institution in the field of Integrated Rural Development.
&nbs! p;
True/False
Question A Bill of Exchange is negotiable.
True/False
Question Issuance of CD attracts reserve requirements.
True/False
Question Banks issue Guarantees on behalf of their clients.
True/False
Question Under MIGA the World bank offers various forms of Political Insurance.
Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it
in the open market
Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in
the open market
Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
True/False
Question The SFCs also borrow from SIDBI & IDBI.
True/False
Question The bids for T-Bills are on price/interest basis.
True/False
Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.
True/False
Question NABARD is an apex institution in the field of Integrated Rural Development.
True/False
Question A Bill of Exchange is negotiable.
True/False
Question Issuance of CD attracts reserve requirements.
True/False
Question Banks issue Guarantees on behalf of their clients.
True/False
Question Under MIGA the World bank offers various forms of Political Insurance.
Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer True
True/False
Question Small Savings are source of Capital Receipts for the Government.
Correct Answer True
Your Answer False
True/False
Question The Capital of NABARD is subscribed by World Bank.
Correct Answer Issuing bonds , Borrowing from RBI , Borrowing from International
Financial Institutions
Your Answer Borrowing from RBI , Borrowing from International Financial Institutions
True/False
Question PFC has been persuading State Governments restructuring of their power
sector to make them viable.
True/False
Question Under MIGA the World bank offers various forms of Political Insurance.
True/False
Question SCICI is a member of the OTCEI.
True/False
Question A Bill of Exchange is negotiable.
True/False
Question In case of T-Bills potential investors have to put in
competitive bids.
True/False
Question Non bank financial institutions undertake fund and non fund based activities.
Correct Answer Handling foreign currency , Handling Doc. credits , Granting lines of
Credit
Your Answer Maintaining SLR/CRR , Handling foreign currency , Handling Doc. credits
, Granting lines of Credit
True/False
Question Banks issue Guarantees on behalf of their clients.
Correct Answer True
Your Answer False
True/False
Question Bank Guarantee can be Performance of financial Guarantee.
Correct Answer False
Your Answer False
True/False
Question EXIM Bank provides Lines of Credit to other nations for Indian exports.
Correct Answer True
Your Answer True
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer False
True/False
Question No TDS is deducted on Interest paid on CDs.
Correct Answer True
Your Answer True
True/False
Question Amongst others, ICICI also provided long and medium term loans or equity finance.
Correct Answer True
Your Answer True
True/False
Question HDFC was set up by NHB.
Correct Answer False
Your Answer False
True/False
Question IDA does not lend to countries that are not in a position to borrow from IBRD.
Correct Answer False
Your Answer False
True/False
Question The bids for T-Bills are on price/interest basis.
Correct Answer True
Your Answer True
True/False
Question NABARD provides short term refinance for procurement activities also.
Correct Answer True
Your Answer False
True/False
Question Banks issue Guarantees on behalf of their clients.
Correct Answer True
Your Answer False
True/False
Question Bank Guarantee can be Performance of financial Guarantee.
Correct Answer False
Your Answer False
True/False
Question EXIM Bank provides Lines of Credit to other nations for Indian exports.
Correct Answer True
Your Answer True
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer False
True/False
Question No TDS is deducted on Interest paid on CDs.
Correct Answer True
Your Answer True
True/False
Question Amongst others, ICICI also provided long and medium term loans or equity finance.
Correct Answer True
Your Answer True
True/False
Question HDFC was set up by NHB.
Correct Answer False
Your Answer False
True/False
Question IDA does not lend to countries that are not in a position to borrow from IBRD.
Correct Answer False
Your Answer False
True/False
Question The bids for T-Bills are on price/interest basis.
Correct Answer True
Your Answer True
True/False
Question NABARD provides short term refinance for procurement activities also.
Correct Answer True
Your Answer False
True/False
Question NABARD does not provide Refinance for stocking &
distribution of Chemical Fertilisers.
Correct Answer False
Your Answer True
True/False
Question Non bank financial institutions undertake fund and
non fund based activities.
Correct Answer True
Your Answer False
True/False
Question Bank Guarantee can be Performance of financial
Guarantee.
Correct Answer False
Your Answer True
True/False
Question Most of the Indian PS Banks practice retail banking.
Correct Answer True
Your Answer False
True/False
Question IMF discourages excessive use of its resources by
imposing a surcharge on large loans.
Correct Answer True
Your Answer True
True/False
Question A Bill of Exchange is negotiable.
Correct Answer True
Your Answer True
True/False
Question The currency notes issued by RBI are legal tender
everywhere in India without any limit.
Correct Answer True
Your Answer True
True/False
Question Issuance of CD attracts reserve requirements.
Correct Answer False
Your Answer True
True/False
Question IDA does not lend to countries that are not in a
position to borrow from IBRD.
Correct Answer False
Your Answer False
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer True
FI & B Binu -LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question Banks issue Guarantees on behalf of their clients.
Correct Answer True
Your Answer False
True/False
Question Bank Guarantee can be Performance of financial Guarantee.
Correct Answer False
Your Answer False
True/False
Question EXIM Bank provides Lines of Credit to other nations for Indian exports.
Correct Answer True
Your Answer True
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer False
True/False
Question No TDS is deducted on Interest paid on CDs.
Correct Answer True
Your Answer True
True/False
Question Amongst others, ICICI also provided long and medium term loans or equity finance.
Correct Answer True
Your Answer True
True/False
Question HDFC was set up by NHB.
Correct Answer False
Your Answer False
True/False
Question IDA does not lend to countries that are not in a position to borrow from IBRD.
Correct Answer False
Your Answer False
True/False
Question The bids for T-Bills are on price/interest basis.
Correct Answer True
Your Answer True
True/False
Question NABARD provides short term refinance for procurement activities also.
Correct Answer True
Your Answer False
True/False
Question PFC has been persuading State Governments restructuring of their power
sector to make them viable.
Correct Answer True
Your Answer True
True/False
Question The SFCs also borrow from SIDBI & IDBI.
True/False
Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.
True/False
Question NABARD is an apex institution in the field of Integrated Rural Development.
&nbs! p;
True/False
Question A Bill of Exchange is negotiable.
True/False
Question Issuance of CD attracts reserve requirements.
True/False
Question Banks issue Guarantees on behalf of their clients.
True/False
Question Under MIGA the World bank offers various forms of Political Insurance.
Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it
in the open market
Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in
the open market
Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
True/False
Question The SFCs also borrow from SIDBI & IDBI.
True/False
Question The bids for T-Bills are on price/interest basis.
True/False
Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.
True/False
Question NABARD is an apex institution in the field of Integrated Rural Development.
True/False
Question A Bill of Exchange is negotiable.
True/False
Question Issuance of CD attracts reserve requirements.
True/False
Question Banks issue Guarantees on behalf of their clients.
True/False
Question Under MIGA the World bank offers various forms of Political Insurance.
Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer True
True/False
Question Small Savings are source of Capital Receipts for the Government.
Correct Answer True
Your Answer False
True/False
Question The Capital of NABARD is subscribed by World Bank.
Correct Answer Issuing bonds , Borrowing from RBI , Borrowing from International
Financial Institutions
Your Answer Borrowing from RBI , Borrowing from International Financial Institutions
True/False
Question PFC has been persuading State Governments restructuring of their power
sector to make them viable.
True/False
Question Under MIGA the World bank offers various forms of Political Insurance.
True/False
Question SCICI is a member of the OTCEI.
True/False
Question A Bill of Exchange is negotiable.
True/False
Question In case of T-Bills potential investors have to put in
competitive bids.
True/False
Question Non bank financial institutions undertake fund and non fund based activities.
Correct Answer Handling foreign currency , Handling Doc. credits , Granting lines of
Credit
Your Answer Maintaining SLR/CRR , Handling foreign currency , Handling Doc. credits
, Granting lines of Credit
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer True
True/False
Question Small Savings are source of Capital Receipts for the
Government.
Correct Answer True
Your Answer False
True/False
Page 4
Financial Institutions and Banking_6
Question The Capital of NABARD is subscribed by World Bank.
Correct Answer False
Your Answer False
True/False
Question PFC has been persuading State Governments restructuring
of their power sector to make them viable.
Correct Answer True
Your Answer True
True/False
Question Under MIGA the World bank offers various forms of
Page 5
Financial Institutions and Banking_6
Political Insurance.
Correct Answer True
Your Answer True
True/False
Question SCICI is a member of the OTCEI.
Correct Answer True
Your Answer False
True/False
Question A Bill of Exchange is negotiable.
Correct Answer True
Your Answer True
True/False
Question HDFC was set up by NHB.
Correct Answer False
Your Answer False
True/False
Question In case of T-Bills potential investors have to put in
competitive bids.
Correct Answer True
Your Answer True
Page 6
Financial Institutions and Banking_6
True/False
Question Non bank financial institutions undertake fund and non
fund based activities.
Correct Answer True
Your Answer True
Page 7
FI & B Binu -LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question Banks issue Guarantees on behalf of their clients.
Correct Answer True
Your Answer False
True/False
Question Bank Guarantee can be Performance of financial Guarantee.
Correct Answer False
Your Answer False
True/False
Question EXIM Bank provides Lines of Credit to other nations for Indian exports.
Correct Answer True
Your Answer True
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer False
True/False
Question No TDS is deducted on Interest paid on CDs.
Correct Answer True
Your Answer True
True/False
Question Amongst others, ICICI also provided long and medium term loans or equity finance.
Correct Answer True
Your Answer True
True/False
Question HDFC was set up by NHB.
Correct Answer False
Your Answer False
True/False
Question IDA does not lend to countries that are not in a position to borrow from IBRD.
Correct Answer False
Your Answer False
True/False
Question The bids for T-Bills are on price/interest basis.
Correct Answer True
Your Answer True
True/False
Question NABARD provides short term refinance for procurement activities also.
Correct Answer True
Your Answer False
True/False
Question Free trade policy is not suited to developing & underdeveloped
countries because the industries of the developed countries
need protection from well established and well organized
industries of the developed countries.
Correct Answer True
True/False
Question In case of export of goods on consignment basis, the freight and
insurance is arranged by the agent of exporter in his country.
Correct Answer False
Correct Answer Products from small/ cottage units , Fruits and vegetables ,
Horticultural products
Your Answer Products from small/ cottage units , Fruits and vegetables ,
Horticultural products
True/False
Question Capital Account covers all transactions relating to India's foreign
financial assets and liabilities.
Correct Answer True
Correct Answer Are same within the country , Different outside the country ,
Incorporate artificial barriers in form of quotas import duties
Your Answer Are same within the country , Different outside the country ,
Incorporate artificial barriers in form of quotas import duties
True/False
Question Foreign Trade helps to understand the life style, culture,
philosophies, social & political institutions of the different
countries
Correct Answer True
True/False
Question Free Trade is the best policy for economic development.
True/False
Question The international monetary fund is an organization of countries
that seeks to promote international monetary cooperation
Correct Answer True
True/False
Question IRPS is replaced by Engineering Products (Replenishment of
Iron and Steel Intermediates) Scheme.
Correct Answer True
Correct Answer South east Asian crisis , Continued recession in Japan , Several
economic crisis in Russia
Your Answer South east Asian crisis , Continued recession in Japan , Several
economic crisis in Russia
Your Answer 80
True/False
Question Handicrafts are exported to more than 100 countries out of
which 11 countries buy and absorb about 80% of India's export
of Handicraft
Correct Answer True
a)
1980-82
b) 1981-82
c) 1982-83
d) 1979-80
As per estimates of IMF if oil price rises by USD 5 per barrel it will amount to
25.
reduced GDP in industrial countries by .
34.
During plan period the average annual trade deficit reached its peak
43. Current Account is regarded as most basic of all sub accounts because :-
a)
Its volumes are bigger in size
b) It contains all transactions giving rise to countries national income
a)
STAT 5 From
b) STAT 4 From
c) STAT 3 Form
d) STAT 10 Form
a)
Modern economists
b) Traditional economists
c) Classical economists
d) Conservative economists
51. Faceless presence of Indian exporters in International market is denoted by
:-
a)
In ability to export in consumer packs
b) Create market for the brand
c) Maintaining quality
d) Dominance of MNCs
True/False
Question Demonetisation means transfer of gold from Non-Monetary to
Monetary stock of reserves.
Correct Answer False
True/False
Question CCS scheme was abolished following the economic reforms.
Correct Answer India is the seventh largest production of fish , Second in inland
fish , Japan is the major market
Your Answer India is the seventh largest production of fish
True/False
Question Coffee has been identified for making special thrust in foreign
markets
Correct Answer False
Correct Answer Uneven GDP Growth pattern , Demand in major currencies like
Dollars , Misalignment between EURO and US Dollar
Your Answer Uneven GDP Growth pattern , Demand in major currencies like
Dollars , Misalignment between EURO and US Dollar
True/False
Question Capital Account covers all transactions relating to India's foreign
financial assets and liabilities.
Correct Answer True
True/False
Question Adverse International economic situation immediately affects
Indian markets and exports.
Correct Answer True
True/False
Question IRPS compensates the exporters price difference between
domestic market and International market on purchase of raw
materials.
Correct Answer True
True/False
Question Export Processing Zones cannot be set up by Private sector.
True/False
Question Asian Development Bank is established to assist development of
the developing countries under its region
Correct Answer True
True/False
Question Short terms Capital involves movement of ownership with less
than one year maturity.
Correct Answer True
True/False
Question Foreign Trade helps to understand the life style, culture,
philosophies, social & political institutions of the different
countries
Correct Answer True
a)
1980-82
b) 1981-82
c) 1982-83
d) 1979-80
As per estimates of IMF if oil price rises by USD 5 per barrel it will amount to
25.
reduced GDP in industrial countries by .
34.
During plan period the average annual trade deficit reached its peak
43. Current Account is regarded as most basic of all sub accounts because :-
a)
Its volumes are bigger in size
b) It contains all transactions giving rise to countries national income
a)
STAT 5 From
b) STAT 4 From
c) STAT 3 Form
d) STAT 10 Form
a)
Modern economists
b) Traditional economists
c) Classical economists
d) Conservative economists
51. Faceless presence of Indian exporters in International market is denoted by
:-
a)
In ability to export in consumer packs
b) Create market for the brand
c) Maintaining quality
d) Dominance of MNCs
True/False
Question Demonetisation means transfer of gold from Non-Monetary to
Monetary stock of reserves.
Correct Answer False
True/False
Question CCS scheme was abolished following the economic reforms.
Correct Answer India is the seventh largest production of fish , Second in inland
fish , Japan is the major market
Your Answer India is the seventh largest production of fish
True/False
Question Coffee has been identified for making special thrust in foreign
markets
Correct Answer False
Correct Answer Uneven GDP Growth pattern , Demand in major currencies like
Dollars , Misalignment between EURO and US Dollar
Your Answer Uneven GDP Growth pattern , Demand in major currencies like
Dollars , Misalignment between EURO and US Dollar
True/False
Question Capital Account covers all transactions relating to India's foreign
financial assets and liabilities.
Correct Answer True
True/False
Question Adverse International economic situation immediately affects
Indian markets and exports.
Correct Answer True
True/False
Question IRPS compensates the exporters price difference between
domestic market and International market on purchase of raw
materials.
Correct Answer True
True/False
Question Export Processing Zones cannot be set up by Private sector.
True/False
Question Asian Development Bank is established to assist development of
the developing countries under its region
Correct Answer True
True/False
Question Short terms Capital involves movement of ownership with less
than one year maturity.
Correct Answer True
True/False
Question Foreign Trade helps to understand the life style, culture,
philosophies, social & political institutions of the different
countries
Correct Answer True
True/False
Question The trade balance was positive during the year 2000-01
amounting to approx US$ 1 Bill only.
Correct Answer False
Correct Answer Uneven GDP Growth pattern , Demand in major currencies like
Dollars , Misalignment between EURO and US Dollar
Your Answer Uneven GDP Growth pattern , Demand in major currencies like
Dollars , Lack of support to developing countries
True/False
Question WTO is simply renaming of GATT an d the there is no major
difference
Correct Answer False
True/False
Question Consignment exports means goods dispatched to the agent of
the exporter on sale or return basis
Correct Answer True
True/False
Question Membership in the world bank is optional & not prerequisite for
membership in International Finance Corporation (IFC)
Correct Answer False
True/False
Question Export growth was slow due to lack of value addition.
True/False
Question Export Processing Zones cannot be set up by Private sector.
True/False
Question Trade samples of goods and publicity materials supplied free of
payment are exempted from declaration in the form prescribed
by RBI
Correct Answer True
True/False
Question A deficit occurs when Autonomous Transactions give rise to
receipts as against payments.
Correct Answer False
Correct Answer Foreign exchange received from abroad for tourist/ students
Your Answer Foreign exchange received from abroad for tourist/ students
Correct Answer Spell out principles of liberalization , Set procedures for settling
disputes , Prescribe special treatment for developing countries
Your Answer Spell out principles of liberalization , Set procedures for settling
disputes , Prescribe special treatment for developing countries
True/False
Question Capital Account of BOP has undergone major structural change
in favour of Non Debt creating Foreign Investment inflows.
Correct Answer True
True/False
Question Coffee has been identified for making special thrust in foreign
markets
Correct Answer False
True/False
Question India has a natural competitive advantage in agricultural exports
because of lower need of inputs, reasonable labour cost and
diverse agro-climatic conditions.
Correct Answer True
True/False
Question Under the Gold Standard burden of adjustment is on Internal
Economy.
Correct Answer True
Your Answer Pent up demand of the war and the post war period
True/False
Question International Monetary Fund was established to create a
monetary system that would provide relief and reconstruction to
the countries affected by World War.
Correct Answer False
True/False
Question Membership of IMF is the principle condition for membership of
the world bank
Correct Answer True
Correct Answer All trading partners shall be granted the most fevoured nation
status (MFN)
Your Answer All trading partners shall be granted the most fevoured nation
status (MFN)
Correct Answer Air Freight subsidy , Export Credit Interest rates , Excise duties
Your Answer Air Freight subsidy , Export Credit Interest rates , Excise duties
True/False
Question For the exports to Nepal and Bhutan payment has to be in their
respective currencies
Correct Answer False
True/False
Question Free trade policy is not suited to developing & underdeveloped
countries because the industries of the developed countries
need protection from well established and well organized
industries of the developed countries.
Correct Answer True
True/False
Question In case of export of goods on consignment basis, the freight and
insurance is arranged by the agent of exporter in his country.
Correct Answer False
Correct Answer Products from small/ cottage units , Fruits and vegetables ,
Horticultural products
Your Answer Products from small/ cottage units , Fruits and vegetables ,
Horticultural products
True/False
Question Capital Account covers all transactions relating to India's foreign
financial assets and liabilities.
Correct Answer True
Correct Answer Are same within the country , Different outside the country ,
Incorporate artificial barriers in form of quotas import duties
Your Answer Are same within the country , Different outside the country ,
Incorporate artificial barriers in form of quotas import duties
True/False
Question Foreign Trade helps to understand the life style, culture,
philosophies, social & political institutions of the different
countries
Correct Answer True
True/False
Question Free Trade is the best policy for economic development.
True/False
Question The international monetary fund is an organization of countries
that seeks to promote international monetary cooperation
Correct Answer True
True/False
Question IRPS is replaced by Engineering Products (Replenishment of
Iron and Steel Intermediates) Scheme.
Correct Answer True
Correct Answer South east Asian crisis , Continued recession in Japan , Several
economic crisis in Russia
Your Answer South east Asian crisis , Continued recession in Japan , Several
economic crisis in Russia
Your Answer 80
True/False
Question Handicrafts are exported to more than 100 countries out of
which 11 countries buy and absorb about 80% of India's export
of Handicraft
Correct Answer True
True/False
Question The trade balance was positive during the year 2000-01
amounting to approx US$ 1 Bill only.
Correct Answer False
Correct Answer Uneven GDP Growth pattern , Demand in major currencies like
Dollars , Misalignment between EURO and US Dollar
Your Answer Uneven GDP Growth pattern , Demand in major currencies like
Dollars , Lack of support to developing countries
True/False
Question WTO is simply renaming of GATT an d the there is no major
difference
Correct Answer False
True/False
Question Consignment exports means goods dispatched to the agent of
the exporter on sale or return basis
Correct Answer True
True/False
Question Membership in the world bank is optional & not prerequisite for
membership in International Finance Corporation (IFC)
Correct Answer False
True/False
Question Export growth was slow due to lack of value addition.
True/False
Question Export Processing Zones cannot be set up by Private sector.
True/False
Question Trade samples of goods and publicity materials supplied free of
payment are exempted from declaration in the form prescribed
by RBI
Correct Answer True
True/False
Question A deficit occurs when Autonomous Transactions give rise to
receipts as against payments.
Correct Answer False
Correct Answer Foreign exchange received from abroad for tourist/ students
Your Answer Foreign exchange received from abroad for tourist/ students
Correct Answer Spell out principles of liberalization , Set procedures for settling
disputes , Prescribe special treatment for developing countries
Your Answer Spell out principles of liberalization , Set procedures for settling
disputes , Prescribe special treatment for developing countries
True/False
Question Capital Account of BOP has undergone major structural change
in favour of Non Debt creating Foreign Investment inflows.
Correct Answer True
True/False
Question Coffee has been identified for making special thrust in foreign
markets
Correct Answer False
True/False
Question India has a natural competitive advantage in agricultural exports
because of lower need of inputs, reasonable labour cost and
diverse agro-climatic conditions.
Correct Answer True
True/False
Question Under the Gold Standard burden of adjustment is on Internal
Economy.
Correct Answer True
Your Answer Pent up demand of the war and the post war period
True/False
Question International Monetary Fund was established to create a
monetary system that would provide relief and reconstruction to
the countries affected by World War.
Correct Answer False
True/False
Question Membership of IMF is the principle condition for membership of
the world bank
Correct Answer True
Correct Answer All trading partners shall be granted the most fevoured nation
status (MFN)
Your Answer All trading partners shall be granted the most fevoured nation
status (MFN)
Correct Answer Air Freight subsidy , Export Credit Interest rates , Excise duties
Your Answer Air Freight subsidy , Export Credit Interest rates , Excise duties
True/False
Question For the exports to Nepal and Bhutan payment has to be in their
respective currencies
Correct Answer False
True/False
Question Free trade policy is not suited to developing & underdeveloped
countries because the industries of the developed countries
need protection from well established and well organized
industries of the developed countries.
Correct Answer True
True/False
Question In case of export of goods on consignment basis, the freight and
insurance is arranged by the agent of exporter in his country.
Correct Answer False
Correct Answer Products from small/ cottage units , Fruits and vegetables ,
Horticultural products
Your Answer Products from small/ cottage units , Fruits and vegetables ,
Horticultural products
True/False
Question Capital Account covers all transactions relating to India's foreign
financial assets and liabilities.
Correct Answer True
Correct Answer Are same within the country , Different outside the country ,
Incorporate artificial barriers in form of quotas import duties
Your Answer Are same within the country , Different outside the country ,
Incorporate artificial barriers in form of quotas import duties
True/False
Question Foreign Trade helps to understand the life style, culture,
philosophies, social & political institutions of the different
countries
Correct Answer True
True/False
Question Free Trade is the best policy for economic development.
True/False
Question The international monetary fund is an organization of countries
that seeks to promote international monetary cooperation
Correct Answer True
True/False
Question IRPS is replaced by Engineering Products (Replenishment of
Iron and Steel Intermediates) Scheme.
Correct Answer True
Correct Answer South east Asian crisis , Continued recession in Japan , Several
economic crisis in Russia
Your Answer South east Asian crisis , Continued recession in Japan , Several
economic crisis in Russia
Your Answer 80
True/False
Question Handicrafts are exported to more than 100 countries out of
which 11 countries buy and absorb about 80% of India's export
of Handicraft
Correct Answer True
a)
1980-82
b) 1981-82
c) 1982-83
d) 1979-80
As per estimates of IMF if oil price rises by USD 5 per barrel it will amount to
25.
reduced GDP in industrial countries by .
34.
During plan period the average annual trade deficit reached its peak
43. Current Account is regarded as most basic of all sub accounts because :-
a)
Its volumes are bigger in size
b) It contains all transactions giving rise to countries national income
a)
STAT 5 From
b) STAT 4 From
c) STAT 3 Form
d) STAT 10 Form
a)
Modern economists
b) Traditional economists
c) Classical economists
d) Conservative economists
51. Faceless presence of Indian exporters in International market is denoted by
:-
a)
In ability to export in consumer packs
b) Create market for the brand
c) Maintaining quality
d) Dominance of MNCs
True/False
Question Demonetisation means transfer of gold from Non-Monetary to
Monetary stock of reserves.
Correct Answer False
True/False
Question CCS scheme was abolished following the economic reforms.
Correct Answer India is the seventh largest production of fish , Second in inland
fish , Japan is the major market
Your Answer India is the seventh largest production of fish
True/False
Question Coffee has been identified for making special thrust in foreign
markets
Correct Answer False
Correct Answer Uneven GDP Growth pattern , Demand in major currencies like
Dollars , Misalignment between EURO and US Dollar
Your Answer Uneven GDP Growth pattern , Demand in major currencies like
Dollars , Misalignment between EURO and US Dollar
True/False
Question Capital Account covers all transactions relating to India's foreign
financial assets and liabilities.
Correct Answer True
True/False
Question Adverse International economic situation immediately affects
Indian markets and exports.
Correct Answer True
True/False
Question IRPS compensates the exporters price difference between
domestic market and International market on purchase of raw
materials.
Correct Answer True
True/False
Question Export Processing Zones cannot be set up by Private sector.
True/False
Question Asian Development Bank is established to assist development of
the developing countries under its region
Correct Answer True
True/False
Question Short terms Capital involves movement of ownership with less
than one year maturity.
Correct Answer True
True/False
Question Foreign Trade helps to understand the life style, culture,
philosophies, social & political institutions of the different
countries
Correct Answer True
True/False
Question The Negotiating bank examines the documents submitted by
the seller and makes payment if they comply the terms and conditions of
the LC.
Correct Answer True
Your Answer True
True/False
Question Cash flows generated from aforeign project may replace
revenue-producing imports to the host country
Correct Answer False
Your Answer True
True/False
Question Bid rate is bidders buying rate and offered rate is
bidders selling rate.
Correct Answer True
Your Answer True
True/False
Question Head office of ICC is in Paris because of its First
President Eliance Clementel.
Correct Answer True
Your Answer True
True/False
Question Sandby credis are introduced by US Banks because they were
not permitted to issue on demand guarantees.
Correct Answer True
Your Answer True
True/False
Question Funding Options in domestic yen market are Futures, FRAs,
Call and put options.
Correct Answer True
Your Answer True
True/False
Question With the advent of futures and Options there is no need
for additional instruments of risk hedging.
Correct Answer False
Your Answer True
True/False
Question Charter party bills of lading are generally not acceptable
to bankers as security because Sea Charters are full of problems.
Correct Answer True
Your Answer True
True/False
Question The American Dollar market comprises of the domestic
segment of USD the offshore segment of USD.
Correct Answer True
Your Answer True
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question The Negotiating bank examines the documents submitted by
the seller and makes payment if they comply the terms and conditions of
the LC.
Correct Answer True
Your Answer True
True/False
Question Cash flows generated from aforeign project may replace
revenue-producing imports to the host country
Correct Answer False
Your Answer True
True/False
Question Bid rate is bidders buying rate and offered rate is
bidders selling rate.
Correct Answer True
Your Answer True
True/False
Question Head office of ICC is in Paris because of its First
President Eliance Clementel.
Correct Answer True
Your Answer True
True/False
Question Sandby credis are introduced by US Banks because they were
not permitted to issue on demand guarantees.
Correct Answer True
Your Answer True
True/False
Question Funding Options in domestic yen market are Futures, FRAs,
Call and put options.
Correct Answer True
Your Answer True
True/False
Question With the advent of futures and Options there is no need
for additional instruments of risk hedging.
Correct Answer False
Your Answer True
True/False
Question Charter party bills of lading are generally not acceptable
to bankers as security because Sea Charters are full of problems.
Correct Answer True
Your Answer True
True/False
Question The American Dollar market comprises of the domestic
segment of USD the offshore segment of USD.
Correct Answer True
Your Answer True
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question Cross currency forward contract is not meaningful if original contract is in Rupees to USD
Correct Answer True
Your Answer True
True/False
Question ECGC offers insurance protection to Indian exporters against payment risks.
Correct Answer True
Your Answer True
True/False
Question The American Dollar market comprises of the domestic segment of USD the offshore
segment of USD.
Correct Answer True
Your Answer True
True/False
Question An Indian exporting goods to New York receives dollars in New York.
Correct Answer True
Your Answer True
The First stage in the Europeand and Monetary Union (EMU) Free movement of capital in EC Free
movement of capital in EC
Stage III in EMU Members to meet the convergence criteria and fix the exchange rates Members to
meet the convergence criteria and fix the exchange rates
True/False
Question Bridge Loans are granted for construction of large size bridges, and flyovers.
Correct Answer False
Your Answer True
True/False
Question Integrated branches of Commercial banks handle forex transactions as well as options,
swaps, futures, arbitrage operations
Correct Answer True
Your Answer True
True/False
Question Country risk analysis is a futile exercise in the background of cost of analysis.
Correct Answer True
Your Answer True
True/False
Question In red clause credit some clauses are printed in Red ink.
Correct Answer True
Your Answer True
True/False
Question Out of 15 member countries in European Union 12 countries committed themselves for a
single currency.
Correct Answer False
Your Answer False
Select The Blank
Question FRNs are issued for a maturity period of ________ and are normally redeemed in one
shot.
Correct Answer 5-7 years
Your Answer 5-7 years
True/False
Question Sterling FRNs are issued in Europe, USA ,Asia
Correct Answer False
Your Answer True
True/False
Question In a coupon swap the receiver is the one who receives fixed rate
of interest.
Correct Answer True
True/False
Question Normally the forward contracts are booked for making huge
profits.
Correct Answer False
Correct Answer Right and not the obligation to take or give future delivery of an
agreed quantity at certain price
Your Answer Right and not the obligation to take or give future delivery of an
agreed quantity at certain price
True/False
Question Postal receipt is an acknowledgement of receipt of goods, a
quasi negotiable instrument.
Correct Answer False
True/False
Question Open Insurance policy is for any amount for specific period and
specific number of shipments.
Correct Answer False
True/False
Question Resident Individuals in India can acquire foreign bonus shares
on the foreign securities already held by them without prior
approval of RBI
Correct Answer True
Your Answer False
True/False
Question Both futures and options are traded on a public exchange.
Correct Answer Plus or minus movement of exchange rate around the parity rate
Your Answer Plus or minus movement of exchange rate around the parity rate
True/False
Question An Indian exporting goods to New York receives dollars in New
York.
Correct Answer True
Your Answer False
Correct Answer Which are convertible , Which have liquidity confirmed in Euro
market operations
Your Answer Which have liquidity confirmed in Euro market operations ,
Which are convertible
True/False
Question The American Dollar market comprises of the domestic segment
of USD the offshore segment of USD.
Correct Answer True
True/False
Question Out of 15 member countries in European Union 12 countries
commiteed themselves for a single currency.
Correct Answer False
Your Answer True
True/False
Question JV means Joint venture and WOS means World of Security.
Correct Answer It represents title to goods , It is issued under Sale of Goods act
Your Answer It represents title to goods , It is issued under Sale of Goods act
Correct Answer Arrange for transfer of risk from seller to buyer at a convenient
place
Your Answer Arrange for transfer of risk from seller to buyer at a convenient
place
Correct Answer The change in value of currency alters the home currency value
of an asset , liability, , The change in value of currency alters the
home currency value of profit, loss, or future cash flows
Your Answer The change in value of currency alters the home currency value
of an asset , liability, , The change in value of currency alters the
home currency value of profit, loss, or future cash flows
True/False
Question The Negotiating bank examines the documents submitted by the
seller and makes payment if they comply the terms and conditions of the LC.
Correct Answer True
Your Answer True
True/False
Question Cash flows generated from aforeign project may replace
revenue-producing imports to the host country
Correct Answer False
Your Answer True
True/False
Question Bid rate is bidders buying rate and offered rate is bidders selling
rate.
Correct Answer True
Your Answer True
True/False
Question Head office of ICC is in Paris because of its First President Eliance
Clementel.
Correct Answer True
Your Answer True
True/False
Question Sandby credis are introduced by US Banks because they were not
permitted to issue on demand guarantees.
Correct Answer True
Your Answer True
Correct Answer Bring down the external value of US Dollar , Bring some
stability to exchange rates of all the countries
Your Answer Bring down the external value of US Dollar , Bring some
stability to exchange rates of all the countries
Your Answer The buyer of option can buy silver from Mr A at 8000/- per
Kg, in next 6 months, even if the price goes up, , The buyer of option can sell
silver to Mr A at 8000/- per Kg, in next 6 months, even if the price goes down.
Page 5
International Finance_5
True/False
Question Funding Options in domestic yen market are Futures, FRAs, Call
and put options.
Correct Answer True
Your Answer True
True/False
Question The volume of trading of Derivatives in the world trade market is
growing but still only 5% of the total.
Correct Answer False
Your Answer True
True/False
Question With the advent of futures and Options there is no need for
additional instruments of risk hedging.
Correct Answer False
Your Answer True
True/False
Question Charter party bills of lading are generally not acceptable to
bankers as security because Sea Charters are full of problems.
Correct Answer True
Your Answer True
True/False
Question The American Dollar market comprises of the domestic segment of
USD the offshore segment of USD.
Correct Answer True
Your Answer True
Page 8
Ât cellSpacing=0 cellPadding=0 width="100%" border=0>
 Select The Blank
  Question ÂThe stock of foreign reserves in
India, is now around ________ % of
the GDP and exceeds money
circulation.
  Correct AnswerÂ
15 Â
  Your AnswerÂ
20 Â
Â
 Multiple Choice Multiple Answer
  Question ÂThe World Bank Group Consists of
  Correct AnswerÂ
International
 Development
Association , International finance
Corporation , Multinational
Investment Guarantee Agency
  Your AnswerÂ
International
 finance Corporation ,
Multinational Insurance Guarantee
Agency , International Development
Association
Â
 Multiple Choice Single Answer
  Question ÂWhat do you call a 'decreasing
principal swap'?
  Correct AnswerÂ
Amortizing
 swap
  Your AnswerÂ
Amortizing
 swap
Â
 Multiple Choice Single Answer
  Question ÂWho can open an EEFC account?
  Correct AnswerÂ
Individuals
 , firms, companies,
resident in India
  Your AnswerÂ
Individuals
 , firms, companies,
resident in India
Â
 Select The Blank
  Question ÂEUROCLEAR, CEDEL are the
names of ________ related with the
issue of GDR.
  Correct AnswerÂ
Registrars
Â
  Your AnswerÂ
Registrars
Â
Â
 True/False
  Question ÂAn Indian importing goods from USA
pays dollars in India.
  Correct AnswerÂ
False Â
  Your AnswerÂ
True
Â
Â
 Multiple Choice Multiple Answer
  Question ÂHow does a company use swap to
restructure debt, in its balance
sheet?
  Correct AnswerÂ
By resorting
 to floating rate from
fixed rate , By resorting to fixed rate
from floating rate
  Your AnswerÂ
By resorting
 to floating rate from
fixed rate , By resorting to fixed rate
from floating rate
Â
 Multiple Choice Single Answer
  Question ÂHow many Countries participated in
the third survey on Foreign
Exchange, coordinated by BIS in
1992?
  Correct AnswerÂ
26 Â
  Your AnswerÂ
26 Â
Â
 True/False
  Question ÂIn red clause credit some clauses
are printed in Red ink.
  Correct AnswerÂ
True Â
  Your AnswerÂ
False
Â
Â
 Select The Blank
  Question ÂThe rate of interest on rupee finance
for exports is not exceeding
________ less than PLR.
  Correct AnswerÂ
0.025 Â
  Your AnswerÂ
50 basis
 points over LIBOR
Â
 Multiple Choice Multiple Answer
  Question ÂFor issuing a Documentary credit
The applicant is required to provide
to the issuing bank details about
  Correct AnswerÂ
The purchase-sales
 contract, the
mode of payment, the tenor of
payment , The documents required,
the names of authorities who would
issue the documents
  Your AnswerÂ
TheÂpurchase-sales contract, the
mode of payment, the tenor of
payment , The track record of the
buyer and seller
Â
 Multiple Choice Single Answer
  Question ÂExchange Rate means
  Correct AnswerÂ
Value Â
of one currency in terms of
another
  Your AnswerÂ
Value
 of one currency in terms of
another
Â
 Multiple Choice Single Answer
  Question ÂWhat do you understand by 'bill of
lading in a quasi negotiable
instrument'?
  Correct AnswerÂ
It is a document
 of title to goods and
its negotiation may not be complete
and free from qualification.
  Your AnswerÂ
It isÂa document of title to goods and
its negotiation may not be complete
and free from qualification.
Â
 Multiple Choice Single Answer
  Question ÂWhere does the word derivative
originate from?
  Correct AnswerÂ
Mathematics
Â
  Your AnswerÂ
Mathematics
Â
Â
 Multiple Choice Multiple Answer
  Question ÂWhat options does the merchant
have while booking a forward
contract?
  Correct AnswerÂ
Delivery
 on a Fixed date, within six
months , Delivery on a date between
two days separated by a period of
maximum one month
  Your AnswerÂ
Delivery
 on a Fixed date, within six
months , Delivery on a date between
two days separated by a period of
maximum one month , A day within
next 1 year
Â
 Select The Blank
  Question ÂEEFC account holder is allowed to
have ________ facility.
  Correct AnswerÂ
Cheque
 book and nomination
  Your AnswerÂ
Cheque
 book and nomination
Â
 True/False
  Question ÂA small percentage of futures
contracts actually result in delivery of
the underlying commodity or
security.
  Correct AnswerÂ
True Â
  Your AnswerÂ
TrueÂ
Â
 True/False
  Question ÂLong in futures means a
commitment to sell futures at a
future date.
  Correct AnswerÂ
False Â
  Your AnswerÂ
True
Â
Â
 Multiple Choice Multiple Answer
  Question ÂWhat are the categories of
exposures, a person faces in
International trade?
  Correct AnswerÂ
Transaction
 exposure , Translation
exposure
  Your AnswerÂ
Transaction
 exposure , Translation
exposure
Â
 True/False
  Correct AnswerÂ
True Â
  Your AnswerÂ
True
Â
Â
 Multiple Choice Multiple Answer
  Question ÂThe participants in the Forex
Markets are :-
  Correct AnswerÂ
Non banking
 entities wishing to
exchange currencies, , Banks and
their clients , Speculators,
arbitragers
  Your AnswerÂ
NonÂbanking entities wishing to
exchange currencies, , Banks and
their clients , Speculators,
arbitragers
  Correct AnswerÂ
Control
 by Government'
  Your AnswerÂ
Predictability
Â
Â
 Multiple Choice Multiple Answer
  Question ÂCriteria for Direct investment abroad
under normal route :-
  Correct AnswerÂ
Viability
 of the proposal, and
excellent track record of business ,
Experience and expertise of
promoters, benefit to the country
  Your AnswerÂ
Viability
 of the proposal, and
excellent track record of business ,
Experience and expertise of
promoters, benefit to the country
Â
 True/False
  Question ÂPP Form is required when exports
are made to any country by post
parcel on value payable basis.
  Correct AnswerÂ
False Â
  Your AnswerÂ
True
Â
Â
 Multiple Choice Multiple Answer
  Question ÂThe investor is in the money when :-
  Correct AnswerÂ
The exercise
 price is below the spot
price for a call option , The exercise
price is above the spot price for a
put option
  Your AnswerÂ
TheÂexercise price is above the spot
price for a put option , The exercise
price is below the spot price for a put
option
Â
 Multiple Choice Single Answer
  Question ÂUnder which category of exchange
rate did the Indian Rupee came from
June 92?
  Correct AnswerÂ
Other Â
managed Floating
  Your AnswerÂ
Independently
 floating
Â
 Multiple Choice Single Answer
  Question ÂFinancial management is complex
process for
  Correct AnswerÂ
Companies
 which have international
trade
  Your AnswerÂ
Cooperative
 societies abroad
Â
 Select The Blank
  Question ÂThe Trans European Automated
Real Time Gross Settlement
Express Transfer is popular in
________.
  Correct AnswerÂ
Brussels
Â
  Your AnswerÂ
Frankfurt
Â
Â
 Multiple Choice Multiple Answer
  Question ÂWhat is the duty of the AD while
booking a forward contract?
  Correct AnswerÂ
Verify Â
the suitable documentary
evidence, and that the customer is
exposed to risk , Ensure that a
genuine transaction exists
  Your AnswerÂ
Verify
 the suitable documentary
evidence, and that the customer is
exposed to risk , Ensure that a
genuine transaction exists , Protect
the customer fully from exchange
risk
Â
 Select The Blank
  Question ÂEven after liberalisation of exchange
controls, the Euro sterling market
remained volatile because of
uncertainties in UK and gyrations of
sterling against major ________
countries
  Correct AnswerÂ
OECDÂ
  Your AnswerÂ
OECD
Â
Â
 Multiple Choice Single Answer
  Question ÂWith whom can an exporter or
importer book the forward contract?
  Correct AnswerÂ
Authorised
 dealer/Authorised person
  Your AnswerÂ
AnyÂbank in India
Â
 Select The Blank
  Correct AnswerÂ
Cash Incentives
Â
  Your AnswerÂ
LineÂof credit
  Correct AnswerÂ
USD 1=Rs
 50.5000
  Your AnswerÂ
USD
 1=Rs 50.5000 + margin
Â
 True/False
  Question ÂThe Euro Commercial paper is
supported by a team-syndicated
credit with both sides of the
transaction combined into one
operation.
  Correct AnswerÂ
True Â
  Your AnswerÂ
True
Â
Â
 Multiple Choice Multiple Answer
  Correct AnswerÂ
American
 option , European Option
  Your AnswerÂ
American
 option , European Option
Â
 Select The Blank
  Question ÂIn mid 1992 ________ rejected the
ratification of Maastricht treaty
  Correct AnswerÂ
Denmark
Â
  Your AnswerÂ
UK Â
Â
  Correct AnswerÂ
Issuing various insurance policies
covering different risks connected
with exports at nominal premium
  Your AnswerÂ
Issuing
 various guarantees covering
different risks connected with
exports at nominal premium,
Â
 Match The Following
Question Correct Your Answer
Answer
Swap price Difference in Difference in prices of
prices of two two legs of buying and
legs of selling
buying and
selling
Euro Market Market in Market in Euro
Euro currencies
currencies
Making market Quoting rate Quoting rate for both
for both buying and selling a
buying and currency
selling a
currency
Spread Price Price difference
difference between bid and offer
between bid
and offer
Â
 True/False
  Question ÂCountry risk analysis is a futile
exercise in the background of cost of
analysis.
  Correct AnswerÂ
True Â
  Your AnswerÂ
False
Â
Â
 Multiple Choice Single Answer
  Question ÂWhat is the volume of the world's
average daily transactions in foreign
exchange?
  Correct AnswerÂ
USD 1Âtrillion
  Your AnswerÂ
USD Â 1 trillion
Â
 Multiple Choice Multiple Answer
  Question ÂIn DAF, the frontier means :-
  Correct AnswerÂ
Frontier
 of exporter's country ,
Frontier of importer's country
  Your AnswerÂ
Frontier
 of exporter's country ,
Frontier of importer's country
Â
 True/False
  Question ÂIn an interest rate swap if the
payment schedules are identical,
only diffrence between the two
payments is delivered.
  Correct AnswerÂ
True Â
  Your AnswerÂ
True
Â
Â
 Select The Blank
  Question ÂThe option which can be exercised
on the maturity date and not before it
is known as________.
  Correct AnswerÂ
European
 Option
  Your AnswerÂ
European
 Option
Â
 True/False
  Correct AnswerÂ
True Â
  Your AnswerÂ
True
Â
Â
 Multiple Choice Multiple Answer
  Question ÂAt the request of M/s Universal
Traders Calcutta, State Bank of
India opened a documentary credit
in Favour of M/s Star Trading Co
Dubai, for USD 25000/-.Here State
Bank of India Calcutta is known as
  Correct AnswerÂ
Issuing Bank , Opening Bank
  Your AnswerÂ
Issuing
 Bank , Confirming Bank
Â
 Select The Blank
  Question ÂUnder the ________ standard the
Country's Central Bank promised to
buy back the currency at certain rate
of Gold.
  Correct AnswerÂ
Gold Â
  Your Gold
Answer  Â
Multiple Choice Multiple Answer
Âoice Multiple Answer
  Question ÂThe World Bank Group Consists of
  Correct AnswerÂ
International
 Development
Association , International finance
Corporation , Multinational
Investment Guarantee Agency
  Your AnswerÂ
International
 Development
Association , International finance
Corporation , Multinational
Investment Guarantee Agency
Â
 Multiple Choice Single Answer
  Question ÂEquity can be raised internationallly
by a company through :-
  Correct AnswerÂ
Fund raising,
 underwriting, hedging ,
arbitration operations
  Your AnswerÂ
Floating
 debt instruments
Â
 True/False
  Question ÂIn an interest rate swap if the
payment schedules are identical,
only diffrence between the two
payments is delivered.
  Correct AnswerÂ
True Â
  Your AnswerÂ
True
Â
Â
 Select The Blank
  Question ÂThe large flow of money
internationally was caused primarily
by the oil price hikes engineered by
________.
  Correct AnswerÂ
OPECÂcountries
  Your AnswerÂ
European
 Countries
Â
 Select The Blank
  Question Â________ enables bankers to
extend purchase, negotiation or
discount of export bills.
  Correct AnswerÂ
Post shipment
 credit guarantee
  Your AnswerÂ
Export
 finance guarantee
Â
 Multiple Choice Multiple Answer
  Question ÂWhich non financial service does
EXIM Bank give to an exporter?
  Correct AnswerÂ
Provide
 Technical and administrtive
support , Planning, promoting and
developing export oriented
Industries
  Your AnswerÂ
Provide
 Technical and administrtive
support , Planning, promoting and
developing export oriented
Industries
Â
 Multiple Choice Multiple Answer
  Question ÂWhich debits are permitted to EEFC
accounts?
  Correct AnswerÂ
Payment
 of hotel bills abroad,
payment for expenses on Heart
operation abroad , Payment to
EOUs in India for services rendered
by them
  Your AnswerÂ
Payment
 of hotel bills abroad,
payment for expenses on Heart
operation abroad , Payment to
EOUs in India for services rendered
by them
Â
 True/False
  Question ÂTerms in an Irrevocable credit can
not be alterred at all.
  Correct AnswerÂ
False Â
  Your AnswerÂ
TrueÂ
Â
 Multiple Choice Single Answer
  Question ÂHow many INCOTERMS are there in
"Departure" Group?
  Correct AnswerÂ
One Â
  Your AnswerÂ
OneÂ
Â
 Multiple Choice Single Answer
  Question ÂHow does ICC access Govt and
influence Governmental decisions?
  Correct AnswerÂ
Through national committees
  Your AnswerÂ
Through
 national committees
Â
 Multiple Choice Multiple Answer
  Question ÂA Usance bill of exchange may be
drawn in 2 ways. Which are they?
  Correct AnswerÂ
Documents
 against payment ,
Documents against acceptance
  Your AnswerÂ
Documents
 against payment ,
Documents against acceptance
Â
 Multiple Choice Single Answer
  Question ÂName the single most important
factor which may devastate the
economic viability of an operation in
international trade :-
  Correct AnswerÂ
Unfavourable
 fluctuation in the
exchange rate
  Your AnswerÂ
Unfavourable
 fluctuation in the
exchange rate
Â
 True/False
  Question ÂThe Euro Commercial paper is
supported by a team-syndicated
credit with both sides of the
transaction combined into one
operation.
  Correct AnswerÂ
True Â
  Your AnswerÂ
TrueÂ
Â
 Select The Blank
  Question ÂWhen interest rate changes by 0.05
per cent then it has changed
________ basis points.
  Correct AnswerÂ
50 Â
  Your AnswerÂ
50 Â
Â
 Select The Blank
  Question ÂIndia is a founder member of
________.
  Correct AnswerÂ
IMF Â
  Your AnswerÂ
BANKNET
Â
Â
 Multiple Choice Single Answer
  Question ÂHow many types of documents are
required in the International trade?
  Correct AnswerÂ
Six Â
  Your AnswerÂ
Six Â
Â
 Multiple Choice Multiple Answer
  Question ÂExport finance
  Correct AnswerÂ
Preshipment
 credit , Post shipment
credit , Duty Draw back
  Your AnswerÂ
Preshipment
 credit , Post shipment
credit , Buyers credit
Â
 Select The Blank
  Question ÂWhen a credit is made to available
to additional beneficiary wholly or
partly it is called as ________.
  Correct AnswerÂ
Transferable
 credit
  Your AnswerÂ
Transferable
 credit
Â
 True/False
  Question ÂA small percentage of futures
contracts actually result in delivery of
the underlying commodity or
security.
  Correct AnswerÂ
True Â
  Your AnswerÂ
True Â
Â
 Select The Blank
  Question ÂAn exchange rate for $ was48.2050,
it is now 48.2075, then one says that
it has moved ________ basis points
  Correct AnswerÂ
25 Â
  Your AnswerÂ
0.0025
Â
Â
 True/False
  Question ÂTransfer of funds for investment
abroad is allowed freely.
  Correct AnswerÂ
True Â
  Your AnswerÂ
True
Â
Â
 Select The Blank
  Question ÂThe rate of interest on rupee finance
for exports is not exceeding
________ less than PLR.
  Correct AnswerÂ
0.025 Â
  Your AnswerÂ
0.025
Â
Â
 Multiple Choice Multiple Answer
  Question ÂWhat do you understand by 'Foreign
Exchange Risk'?
  Correct AnswerÂ
The change
 in value of currency
alters the home currency value of an
asset , liability, , The change in value
of currency alters the home currency
value of profit, loss, or future cash
flows
  Your AnswerÂ
Certainty
 of an event which would
happen in favour of the importer/
exporter , Inability to control various
factors contributing to International
trade
Â
  Your AnswerÂ
12.5Â
  Correct AnswerÂ
DDP Â
  Your AnswerÂ
DDU Â
Â
 True/False
  Question ÂDealing room is a place where the
actual exchange of currencies takes
place phsically at predetermined
rates.
  Correct AnswerÂ
False Â
  Your AnswerÂ
True
Â
Â
 Multiple Choice Single Answer
  Question ÂWhat was the reason for launching
swap as an risk hedging instrument?
  Correct AnswerÂ
To avoid
 the effects of currency
control imposed in UK
  Your AnswerÂ
To avoid
 the effects of currency
control imposed in UK
Â
 Select The Blank
  Question ÂThe creditworthiness of futures
exchange is maintained through
imposition of ________.
  Correct AnswerÂ
MarginÂ
  Your AnswerÂ
Margin
Â
Â
 True/False
  Question ÂIn forward sales, the delivery refers
to actual cash flows on due date.
  Correct AnswerÂ
True Â
  Your AnswerÂ
TrueÂ
Â
 Multiple Choice Multiple Answer
  Question ÂIn a documentary credit the word
document means :-
  Correct AnswerÂ
Specified
 documents of title,
transportation, insurance , Specified
certificates, and other papers
required as per the regulations in the
buyers country
  Your AnswerÂ
Specified
 documents of title,
transportation, insurance , Specified
certificates, and other papers
required as per the regulations in the
buyers country , Credit is
documented as an evidence
Â
 True/False
  Question ÂThe amount in EEFC account can
be deposited in FCNR account to
get interest.
  Correct AnswerÂ
False Â
  Your AnswerÂ
True
Â
Â
 True/False
  Question ÂADR Level I, is the final step to enter
US erquity market.
  Correct AnswerÂ
False Â
  Your AnswerÂ
False
Â
Â
 Multiple Choice Multiple Answer
  Question ÂAs per BIS, recovery from the recent
crisis in global capital market was
mainly due to
  Correct AnswerÂ
Rapid Âand appropriate policy
response in US and other countries ,
Increase in Foreign Direct
Investments , free flow of credit
  Your AnswerÂ
Rapid
 and appropriate policy
response in US and other countries ,
Increase in Foreign Direct
Investments , free flow of credit ,
Devaluation of currencies
Â
 Multiple Choice Multiple Answer
  Question ÂWhat is the effect of cross currency
option on the customer?
  Correct AnswerÂ
He gets
 the flexibility to exposure ,
He is exposed to additional risk of
movement of rates between 3
currencies
  Your AnswerÂ
He Âgets the flexibility to exposure ,
His profit increases
Â
 Multiple Choice Single Answer
  Question ÂIn case the value date happens to
be a holiday then the settlement is
done :-
  Correct AnswerÂ
On theÂnext working day
  Your AnswerÂ
On Â
the next working day
Â
 Select The Blank
  Question ÂAfter the second world war many
countries adopted the route of
________ to give facelift to sagging
economies.
  Correct AnswerÂ
Devaluation
 of their currencies
  Your AnswerÂ
Devaluation
 of their currencies
Â
 Select The Blank
  Question Â________Bill of lading must specify
the name of the ship.
  Correct AnswerÂ
"On Board"
Â
  Your AnswerÂ
"OnÂBoard"
Â
 Multiple Choice Single Answer
  Question ÂWhose permission was necessary
for forming the Association of
Foreign Exchange Dealers, in India?
  Correct AnswerÂ
Reserve
 Bank of India
  Your AnswerÂ
Reserve
 Bank of India
Â
 Match The Following
Question Correct Your Answer
Answer
European On or after On or after maturity
option maturity
Out of money Loss Loss
In the money Profit Profit
American Before Before maturity
option maturity Â
Multiple Choice Multiple Answer
Âoice Multiple Answer
  QuestionÂ
The ÂWorld Bank Group Consists
of
  CorrectInternational
Answer  Development
  Your AnswerÂ
International
 Development
Association , International finance
Corporation , Multinational
Investment Guarantee Agency
Â
 Multiple Choice Single Answer
  QuestionÂ
Equity
 can be raised
internationallly by a company
through :-
  CorrectFund
AnswerÂ
raising,
 underwriting,
hedging , arbitration operations
  Your AnswerÂ
FloatingÂdebt instruments
Â
 Multiple Choice Single Answer
  QuestionÂ
Financial
 management is complex
process for
  CorrectCompanies
Answer Âwhich have
international trade
  Your AnswerÂ
Companies which have
international trade
Â
 True/False
  QuestionÂ
Import
 finance is nomally
available at rates of interest
cheaper than domestic finance
rates.
  CorrectFalse
Answer Â
  Your AnswerÂ
False Â
Â
 Select The Blank
  QuestionÂ
The Âstock of foreign reserves in
India, is now around ________ %
of the GDP and exceeds money
circulation.
  Correct15
Answer Â
  Your AnswerÂ
12.5 Â
Â
 Multiple Choice Single Answer
  QuestionÂ
Which
 type of Convertibility of
Rupee launched in March 1992 ?
  CorrectLimited
AnswerÂconvertibility
Â
  Your AnswerÂ
Convertibility
 on current account
Â
 Multiple Choice Multiple Answer
  QuestionÂ
HowÂdoes a company use swap to
restructure debt, in its balance
sheet?
  CorrectByAnswerÂ
resorting
 to floating rate from
fixed rate , By resorting to fixed
rate from floating rate
  Your AnswerÂ
By resorting
 to fixed rate from
floating rate , Prepayment of
existing debts , Raising new loans
Â
 Multiple Choice Single Answer
  QuestionÂ
Punjab
 National Bank Mumbai
Branch quoted USD 1= Rs
50.5000/52.5050. Which is the
offered rate for Rs?
  CorrectUSD
AnswerÂ
1=RsÂ50.5000
  Your AnswerÂ
USD 1=Rs
 50.5000 + margin
Â
 Multiple Choice Multiple Answer
  QuestionÂ
What
 facilities are proposed by
Sodhani Committee for NRIs?
  CorrectHousing
AnswerÂLoan
 to NRI staff of
Indian Companies, , NRIs be
permitted to invest in MMMF
  Your AnswerÂ
HousingÂLoan to NRI staff of
Indian Companies, , NRIs be
permitted to invest in MMMF ,
Permission to sale shares under
Port folio investment be denied
Â
 Multiple Choice Multiple Answer
  QuestionÂ
Which
 document is used for
transportation by air, rail, road,
marine?
  CorrectMultimodal
Answer Âtransport document ,
Combined Transport document
  Your AnswerÂ
Multimodal
 transport document ,
Combined Transport document
Â
 Multiple Choice Single Answer
  QuestionÂ
Under
 which contracts the seller
pays the import duty for the
buyer?
  CorrectDDP
Answer Â
  Your AnswerÂ
DDU Â
Â
 True/False
  QuestionÂ
Dealing
 room is a place where the
actual exchange of currencies
takes place phsically at
predetermined rates.
  CorrectFalse
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Single Answer
  QuestionÂ
What was the reason for
launching swap as an risk
hedging instrument?
  CorrectTo
AnswerÂ
avoid the
 effects of currency
control imposed in UK
  Your AnswerÂ
To avoidÂthe effects of currency
control imposed in UK
Â
 Select The Blank
  QuestionÂ
The Âcreditworthiness of futures
exchange is maintained through
imposition of ________.
  CorrectMargin
Answer Â
  Your AnswerÂ
Margin Â
Â
 True/False
  QuestionÂ
In forward
 sales, the delivery
refers to actual cash flows on due
date.
  CorrectTrue
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
In a Â
documentary credit the word
document means :-
  CorrectSpecified
AnswerÂdocuments
 of title,
transportation, insurance ,
Specified certificates, and other
papers required as per the
regulations in the buyers country
  Your Specified documents of title,
Answer transportation, insurance , Â
Multiple Choice Single Answer
ÂChoice Single Answer
  QuestionÂ
In which
 of the funding facilities the
repayment period is between 3 to 5 years ?
  CorrectC.C.F.F.
Answer Â
  Your AnswerÂ
Stand By
 Arrangement
Â
 Multiple Choice Single Answer
  QuestionÂ
Samuraibonds
 are
  CorrectForeign
Answer yen
 bonds issued to non resident
entities in Japanese Market
  Your AnswerÂ
Foreign  yen bonds issued to non resident
entities in Japanese Market
Â
 Match The Following
Question Correct Answer Your
Answer
  QuestionÂ
Samuraibonds
 are
  CorrectForeign
Answer yen
 bonds issued to non resident
entities in Japanese Market
  Your AnswerÂ
Foreign  yen bonds issued to non resident
entities in Japanese Market
Â
  QuestionÂ
In the
 context of International economy ,the
period between 1920s and 1930s is known as
  CorrectGreat
AnswerÂ
Depression
Â
  Your AnswerÂ
Great Depression
Â
Â
  QuestionÂ
Sterling
 Market is attractive for an
international investor because
  CorrectGilts
AnswerÂ
offer higher
 attractive margin , Choice of
issuing medium term and long term bonds
  Your AnswerÂ
Gilts offer
 higher attractive margin , Choice of
issuing medium term and long term bonds ,
Linking of issues to currency swaps
Â
 Select The Blank
  QuestionÂ
When interest rate changes by 0.05 per cent
then it has changed ________ basis points.
  Correct50
Answer Â
  Your AnswerÂ
500 Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
Internationally
 only those currencies are in
demand
  CorrectWhich
AnswerÂare Â
convertible , Which have liquidity
confirmed in Euro market operations
  Your AnswerÂ
Which are convertible , Which have liquidity
confirmed in Euro market operations , Which
have greater intrinsic value
Â
 Select The Blank
  QuestionÂ
AfterÂthe second world war many countries
adopted the route of ________ to give facelift
to sagging economies.
  CorrectDevaluation
Answer  of their currencies
  Your AnswerÂ
Devaluation
 of their currencies
Â
 Multiple Choice Multiple Answer
  QuestionÂ
HowÂdoes RBI control Exports?
  CorrectThrough
AnswerÂRule
 like "Full value of Export bills
must be realised in 180 days," , Through Rule
like " Export must be denominated In a
currency of the Importing country or a freely
convertible currency"
  Your AnswerÂ
ThroughÂRule like "Full value of Export bills
must be realised in 180 days," , Through Rule
like " Export must be denominated In a
currency of the Importing country or a freely
convertible currency" , By Issuing a Export
Code Number, and monitoring his exports
through returns and statements filed by him
Â
 Select The Blank
  QuestionÂ
OverÂthe years ________has been the most
widely accepted currency in international
capital market.
  CorrectAmerican
Answer Dollar
Â
  Your AnswerÂ
American
 Dollar
Â
 Select The Blank
  QuestionÂ
Any Â
company involved in foreign exchange
transactions is exposed to ________ risk.
  CorrectCurrency
Answer Â
  Your AnswerÂ
PaymentÂ
Â
 True/False
  QuestionÂ
An ADÂ can book a forward contract for a part
of the amount of Sale Contract
  CorrectTrue
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Single Answer
  QuestionÂ
WhyÂdoes a person need protection from
unfavourable movement of exchange rate?
  CorrectUnfavourable
Answer  fluctuations in exchange rate
can wipe out the normal business profit
  Your AnswerÂ
He wants
 to make profit
Â
 Match The Following
Question Correct Answer Your
Answer
 True/False
  QuestionÂ
Transfer
 of funds for investment abroad is
allowed freely.
  CorrectTrue
Answer Â
  Your AnswerÂ
True Â
Â
 True/False
  QuestionÂ
The ÂOption period in the forward contract is at
the option of the Banker, hence the bank has
to be very conservative in quoting rates.
  CorrectFalse
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Single Answer
  QuestionÂ
What are the powers of money changers?
  CorrectPurchase
Answer and sell foreign currency notes and
travellers cheques
  Your AnswerÂ
Purchase  and sell foreign currency notes and
travellers cheques
Â
 Select The Blank
  QuestionÂ
________
 is drawn by taking mean of the bid
and offered rates.
  CorrectMiddle
AnswerÂrateÂ
  Your AnswerÂ
Basic rate
Â
Â
 True/False
  QuestionÂ
The Âcredit rating of World Bank is high in the
world Capital market because it operates at
the debt equity ratio of 1:2
  CorrectFalse
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
What are the activities of ICC?
  CorrectAribtration
Answer  and dispute resolving , Canvass
for open trade combat commercial crime
  Your AnswerÂ
Aribtration
 and dispute resolving , Canvass
for open trade combat commercial crime
Â
 Multiple Choice Single Answer
  QuestionÂ
Whose permission was necessary for forming
the Association of Foreign Exchange Dealers,
in India?
  CorrectReserve
AnswerÂBank
 of India
  Your AnswerÂ
ReserveÂBank of India
Â
 Match The Following
Question Correct Answer Your
Answer
 True/False
  QuestionÂ
Tranche'
 is a managed issue of securities in
smaller denominations.
  CorrectTrue
Answer Â
  Your AnswerÂ
True Â
Â
  QuestionÂ
A Documentary
 credit issued on the strength
of another documentary credit is known as
________.
  CorrectBack
AnswerÂ
to Back
 credit
  Your AnswerÂ
Back to ÂBack credit
Â
  QuestionÂ
Till August
 1994 India was following the
Indirect Methodof Rate quotation.
  CorrectFalse
Answer Â
  Your AnswerÂ
True Â
Â
  QuestionÂ
Which
 debits are permitted to EEFC
accounts?
  CorrectPayment
AnswerÂofÂhotel bills abroad, payment for
expenses on Heart operation abroad ,
Payment to EOUs in India for services
rendered by them
  Your AnswerÂ
Payment of hotel bills abroad, payment for
expenses on Heart operation abroad ,
Payment to EOUs in India for services
rendered by them , Investment abroad in
stocks and shares by an Individual
Â
 True/False
  QuestionÂ
Normally
 the forward contracts are booked
for making huge profits.
  CorrectFalse
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
Which
 factors influence the valuation of cash
flows?
  CorrectIncomplete
Answer Âcapital market , Availability of
projkect specific concessional finance,
  Your AnswerÂ
Incomplete  capital market , Rates of inflation,
, volatility of exchange rates
Â
 True/False
  QuestionÂ
Indian
 companies are now allowed to freely
invest abroad up to $1.5 million, raised
through GDE or EEFC without prior
permission from RBI.
  CorrectFalse
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
Name  the services provided by 'Reuter 3000'
in forex market:-
  CorrectQuotation
Answer of forex rates, interest rates ,
Electronic broking by matching the rates
  Your AnswerÂ
Quotation
 of forex rates, interest rates ,
Electronic broking by matching the rates ,
Calculate and quote rates for transactions
Â
 Multiple Choice Multiple Answer
  QuestionÂ
Underwriters
 are more attracted to NIF issue
because of :-
  CorrectLesser
AnswerÂ
risks
 , Increased returns , Easy
marketability features
  Your AnswerÂ
Lesser risks
 , Increased returns , High
underwriting fees
Â
 Multiple Choice Multiple Answer
  QuestionÂ
In which
 cases can a Resident Individual in
India acquire foreign securities without prior
approval?
  CorrectGift
AnswerÂ
from aÂperson outside India, or
Inheritance from a person resident in or
outside India , Security issued under
Cashless employees stock option scheme
  Your AnswerÂ
Gift fromÂa person outside India, or
Inheritance from a person resident in or
outside India , Security issued under
Cashless employees stock option scheme ,
Purchased from NRO/NRNR accounts
Â
 Select The Blank
  QuestionÂ
A ________
 Bill of lading does not specify the
terms and conditions of carriage.
  CorrectShort
AnswerÂ
FormÂ
  Your AnswerÂ
Dirty Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
What  does a speculator accept while dealing
with an option?
  CorrectThe
AnswerÂ
exercise
 or strike price, the amount , The
expiration date and time, the method of
payment
  Your AnswerÂ
The exercise
 or strike price, the amount , The
expiration date and time, the method of
payment
Â
 Multiple Choice Single Answer
  QuestionÂ
For a
 spot transaction carried out on
Thursday, currencies will be exchanged on :-
  CorrectMonday
Answer Â
  Your AnswerÂ
Friday Â
Â
 Multiple Choice Single Answer
  QuestionÂ
Inhow
 many groups are INCOTERMS
classified?
  CorrectFour
Answer Â
  Your AnswerÂ
Four Â
Â
 Select The Blank
  QuestionÂ
In ________
 transaction the delivery is
postponed from the agreed date.
  CorrectRollover
Answer Â
  Your AnswerÂ
Future Â
Â
 True/False
  QuestionÂ
Phytosanitary/
 Radiation/Fumigation
certificates are in the category of Health
Certificates
  CorrectTrue
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
What is the objective of FEDAI?
  CorrectLaying
AnswerÂ
down terms and conditions of
exchange business between Customers and
Bankers , Interbank understanding for
transacting forex business and exchange
rates
  Your AnswerÂ
Laying down
 terms and conditions of
exchange business between Customers and
Bankers , Growth of Indian Exports , Ensure
the profitability of Forex business to the
banks
Â
 True/False
  QuestionÂ
Out Âof 15 member countries in European
Union 12 countries commiteed themselves
for a single currency.
  CorrectFalse
Answer Â
  Your AnswerÂ
True Â
Â
 Select The Blank
  QuestionÂ
For setting
 up joint ventures abroad or equity
participation abroad, EXIM bank provides
funds under ________ Scheme.
  CorrectOverseas
Answer investment
 facility
  Your AnswerÂ
Equity Participation
 scheme
Â
 Multiple Choice Multiple Answer
  QuestionÂ
HowÂis the entry into any conuntry's money
market or capital market is restricted?
  CorrectBecause
AnswerÂofÂdifferent tax systems , Because
of different credit standards
  Your AnswerÂ
BecauseÂof different tax systems , Because
of different credit standards , Because of
resistance by dealer's associations
Â
 Select The Blank
  QuestionÂ
A Bill of exchange payable 45 days from date
of shipment, is a means of ________ from
seller to the buyer.
  CorrectCredit
Answer Â
  Your Payment Â
  QuestionÂ
Forward
 margin makes a currency cheaper
then the currency is at ________.
  CorrectDiscount
Answer Â
  Your AnswerÂ
PAR Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
Which
 of these are not considered as good
securities by the banker?
  CorrectHouse
AnswerÂAirway
 bill , Postal Receipt
  Your AnswerÂ
Postal Receipt
 , House Airway bill
Â
 Multiple Choice Single Answer
  QuestionÂ
The ÂDirect Investment abroad through share
swap arrangement under normal route is
permitted in a :-
  CorrectJV/WOS
Answer Â
  Your AnswerÂ
JV/WOSÂ
Â
 Multiple Choice Single Answer
  QuestionÂ
WhoÂintroduced the worlds first exchange
traded currency futures?
  CorrectChicago
AnswerÂMercantile
 Exchange
  Your AnswerÂ
ChicagoÂMercantile Exchange
Â
 Multiple Choice Multiple Answer
  QuestionÂ
WithÂreference to ECB, fund raising activity
includes :-
  CorrectFloating
Answer rate
 notes, bonds, debentures ,
Syndicate loans, issue of shares
  Your AnswerÂ
FloatingÂrate notes, bonds, debentures ,
Syndicate loans, issue of shares
Â
 Select The Blank
  QuestionÂ
An option
 on a future is ________.
  CorrectDerivative
Answer  on a derivative
  Your AnswerÂ
Irrelevant
Â
Â
 Multiple Choice Single Answer
  QuestionÂ
HowÂdoes ICC help poor countries?
  CorrectAttract
AnswerÂForeign
 Direct investments togeather
with UNCTAD
  Your AnswerÂ
Attract Foreign
 Direct investments togeather
with UNCTAD
Â
 Multiple Choice Multiple Answer
  QuestionÂ
Which  functions does the Bill of Lading
serve?
  CorrectItAnswerÂ
is a document
 of title to goods. , It is receipt
of goods
  Your AnswerÂ
It is a document
 of title to goods. , It is receipt
of goods
Â
 Match The Following
  QuestionÂ
For a
 spot transaction carried out on
Tuesday, where both centers have holiday on
Wednesday, currencies will be exchanged on
:-
  CorrectThursday
AnswerÂifÂit is a working day at both the
centers
  Your AnswerÂ
Thursday if it is a working day at both the
centers
Â
 Match The Following
Question Correct Answer Your
Intolerable Drop the investment project Cost of
risk evluation
does not
justify
analysis
Country Cost of evluation does not justify Continue
risk analysis the project
Stock Banks are ahead Banks are
market ahead
analysis
Weightag Factors' values Factors'
es % values
Â
 True/False
  QuestionÂ
Bid rate
 is bidders buying rate and offered
rate is bidders selling rate.
  CorrectTrue
Answer Â
  Your AnswerÂ
True Â
Â
 True/False
  QuestionÂ
Resident
 Individuals in India can acquire
foreign bonus shares on the foreign securities
already held by them without prior approval of
RBI
  CorrectTrue
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
What do you understand by Commercial
Risk?
  CorrectProtracted
Answer Âdefault by the buyer , Insolvency of
the buyer
  Your AnswerÂ
Protracted default by the buyer , Insolvency of
the buyer , Risk of strikes due to which
commercial activity is haulted
Â
 Multiple Choice Single Answer
  QuestionÂ
A billÂof exchange issued by a bank which
pays specified sum of money to the holder on
a specific date is called :-
  CorrectBankers'
AnswerÂAcceptance
 Bond
  Your AnswerÂ
Usance ÂBill of Exchange
Â
 Select The Blank
  QuestionÂ
Association
 of several scheduled commercial
banks for forex business is ________.
  CorrectForeign
Answer Exchange
 Dealers Association of
India
  Your AnswerÂ
Foreign ÂExchange Dealers Association of
India
Â
 Select The Blank
  QuestionÂ
The Âmajor industrial power whose economy
was not affected after the II world war was
________.
  CorrectUSA
Answer Â
  Your AnswerÂ
USA Â
Â
 True/False
  QuestionÂ
Sterling
 FRNs are issued in Europe, USA
,Asia
  CorrectFalse
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Single Answer
  QuestionÂ
Mr MÂ has imported some goods from Greece.
What is the maximum period within which he
must make the payment?
  CorrectSix
AnswerÂ
monthsÂfrom date of shipment
  Your AnswerÂ
Six months
 from date of bill of exchange
Â
 Multiple Choice Single Answer
  QuestionÂ
Under
 the automatic route of Direct
Investment Abroad, what is the restriction on
market purchases?
  Correct50%
AnswerÂ
of theÂnet worth of the investing
company
  Your AnswerÂ
50% of the
 net worth of the investing
company
Â
 Select The Blank
  QuestionÂ
For importing
 goods in India RBI insists on
________ value.
  CorrectCIF
Answer Â
  Your AnswerÂ
FOB Â
Â
 Multiple Choice Single Answer
  QuestionÂ
What
 is the objective of INCOTERMS?
  CorrectArrange
Answer forÂtransfer of risk from seller to
buyer at a convenient place
  Your AnswerÂ
ArrangeÂfor transfer of risk from seller to
buyer at a convenient place
Â
 Multiple Choice Single Answer
  QuestionÂ
Name the members of Exchange Banks
association :-
  CorrectForeign
AnswerÂBanks
 at Bombay, Calcutta, Delhi,
Madras, Amritsar,
  Your AnswerÂ
Foreign Â
Banks at Bombay, Calcutta, Delhi,
Madras, Amritsar,
Â
 True/False
  QuestionÂ
Yankee
 bond is issued for domestic
borrowers.
  CorrectFalse
Answer Â
  Your AnswerÂ
True Â
Â
 True/False
  QuestionÂ
In the
 forward rate quotations between two
currencies, when one currency is at discount
the other currency is at premium.
  CorrectTrue
Answer Â
  Your AnswerÂ
False Â
Â
 Select The Blank
  QuestionÂ
Fixed interest rate Eurobond without the
option to convert to equity is known as
________.
  CorrectStraight
Answer Debt
Â
  Your AnswerÂ
Straight ÂDebt
Â
 True/False
  QuestionÂ
Cause
 of increase in cost of public issues
Underwriting fees , selling commission
  CorrectTrue
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Single Answer
  QuestionÂ
In the
 syndicated loan arrangement the
borrower has to execute :-
  CorrectSingle
AnswerÂPrincipal
 loan agreement
  Your AnswerÂ
Single Principal
 loan agreement
Â
 Multiple Choice Multiple Answer
  QuestionÂ
What  criteria of lending is adopted by The
International Development agency while
giving loans to a country?
  CorrectThe
AnswerÂ
per capita
 income of the borrwoing
country , The population of the borrwoing
country
  Your AnswerÂ
The per Âcapita income of the borrwoing
country , The repayment capacity. , The
Security offerred.
Â
 Select The Blank
  QuestionÂ
As aÂresult of the world wars in the 20th
century the ________ of most of the
countries suffered heavily.
  CorrectEconomies
Answer Â
  Your AnswerÂ
Currencies
Â
Â
 Select The Blank
  QuestionÂ
Rupee
 was liberalised on ________ account
in 1993, and on current account in 1994.
  CorrectTrade
Answer Â
  Your AnswerÂ
Capital Â
Â
 True/False
  QuestionÂ
Integrated
 branches of Commercial banks
handle forex transactions as well as options,
swaps, futures, arbitrage operations
  CorrectTrue
Answer Â
  Your AnswerÂ
True Â
Â
 True/False
  QuestionÂ
Floating
 rate notes are traded in secondary
market also.
  CorrectTrue
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Single Answer
  QuestionÂ
What  maxim is followed by the forex dealer
when indirect method of exchange rate
quotation is used?
  CorrectBuy
AnswerÂ
Low, sell
 High
  Your AnswerÂ
Buy High, Sell Low
Â
 Select The Blank
  QuestionÂ
In ________
 Contract seller is like a domestic
seller in destination country
  CorrectDDP
Answer Â
  Your AnswerÂ
DDP Â
Â
 Select The Blank
  QuestionÂ
________Bill
 of lading must specify the name
of the ship.
  Correct"On
AnswerÂ
Board"Â
  Your AnswerÂ
"On Board"
Â
Â
 Select The Blank
  QuestionÂ
Indian
 Co. intending to make investment
under Automatic route needs to submit form
________ to RBI with enclosures.
  CorrectODA
Answer Â
  Your AnswerÂ
ODA Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
What  is a 'speculator'?
  CorrectTrader
Answer whoÂis neither hedger nor arbitragor ,
He takes risks for profit
  Your AnswerÂ
Trader who
 is neither hedger nor arbitragor ,
He takes risks for profit , He buys or sells to
hedge his risk
Â
 Multiple Choice Multiple Answer
  QuestionÂ
The Âcharacteristics of IDA Loan are:
  CorrectItAnswerÂ
gives loans
 to poorer countries , The rate of
interest is zero percent , The repayment
period is very long 40 years
  Your AnswerÂ
It gives loans
 to poorer countries , The rate of
interest is zero percent , The repayment
period is very long 40 years
Â
 True/False
  QuestionÂ
Head  office of ICC is in Paris because of its
First President Eliance Clementel.
  CorrectTrue
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
What  does the word '"Tombstone" stand for?
  CorrectAdvertisement
Answer  which lists the managers,
underwriters, , List of Providers of recently
floated issue
  Your AnswerÂ
Advertisement
 which lists the managers,
underwriters, , List of Providers of recently
floated issue , Issue without planning, for
short duration
Â
 Multiple Choice Single Answer
  QuestionÂ
What  is Risk Syndication facility?
  CorrectSharing
Answer of Â
risk of non payment by supplier
  Your AnswerÂ
Sharing Âof risk of non payment by supplier
Â
 Multiple Choice Multiple Answer
  QuestionÂ
What  do you understand by 'Foreign
Exchange Risk'?
  CorrectThe
AnswerÂ
change  in value of currency alters the
home currency value of an asset , liability, ,
The change in value of currency alters the
home currency value of profit, loss, or future
cash flows
  Your AnswerÂ
The change
 in value of currency alters the
home currency value of an asset , liability, ,
The change in value of currency alters the
home currency value of profit, loss, or future
cash flows
Â
 Multiple Choice Multiple Answer
  QuestionÂ
The Âmaximum period for which a forward
contract can be granted by the AD depends
upon which RBI directives?
  CorrectMaximum
Answer Period
 of repatriation of export
proceeds , Maximum Period of payment for
Imports
  Your AnswerÂ
Maximum  Period of repatriation of export
proceeds , Maximum Period of payment for
Imports
Â
 Multiple Choice Multiple Answer
  QuestionÂ
A Forward
 purchase contract was booked
with an authorised dealer and subsequently
cancelled .It :-
  CorrectCan
AnswerÂ
be booked
 again with another dealer ,
Can be booked again with the same dealer
  Your AnswerÂ
Can be booked
 again with another dealer ,
Can be booked again with the same dealer ,
Can be booked only for un booked portion of
the contract.
Â
 True/False
  QuestionÂ
BothÂfutures and options are traded on a
public exchange.
  CorrectFalse
Answer Â
  Your AnswerÂ
False Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
The Âcharacteristics of an International
documentary credit are :-
  CorrectItAnswerÂ
is an undertaking
 given by the openers
bank to pay certain sum of money , It is an
undertaking given on behalf of a certain
person to another person in different country
  Your It is an undertaking given by the openers
Answer bank to pay certain sum of money , It is an
 undertaking given on behalf of a certain
person to another person in different country ,
It is an unconditional undertaking Â
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Correct Answer Price established by the clearing house at the end of each
trading session , It is used to determine the net gain, loss,
margin call and next days price limits
Your Answer Price established by the clearing house at the end of each
trading session , It is used to determine the net gain, loss,
margin call and next days price limits
True/False
Question The working of the IBRD and IMF in recent has blurred the
difference between the two
Correct Answer True
True/False
Question An exporter expecting payment in$ next month will book a
forward purchase contract.
Correct Answer False
Correct Answer It gives loans to poorer countries , The rate of interest is zero
percent , The repayment period is very long 40 years
Your Answer It gives loans to poorer countries , The rate of interest is zero
percent , The repayment period is very long 40 years
Correct Answer Viability of the proposal, and excellent track record of business ,
Experience and expertise of promoters, benefit to the country
Your Answer Viability of the proposal, and excellent track record of business ,
Experience and expertise of promoters, benefit to the country ,
Total Financial commitment in JV/WOS as per prescribed ceiling
True/False
Question Integrated branches of Commercial banks handle forex
transactions as well as options, swaps, futures, arbitrage
operations
Correct Answer True
True/False
Question Both futures and options are traded on a public exchange.
Correct Answer Which are convertible , Which have liquidity confirmed in Euro
market operations
Your Answer Which are convertible , Which have liquidity confirmed in Euro
market operations , Which have greater intrinsic value
True/False
Question JV means Joint venture and WOS means World of Security.
True/False
Question The American Dollar market comprises of the domestic segment
of USD the offshore segment of USD.
Correct Answer True
True/False
Question FRN's issued with ceiling on interest beyond which the issues is
not required to pay interest is known as Mini-Max FRN
Correct Answer True
Correct Answer Gilts offer higher attractive margin , Choice of issuing medium
term and long term bonds
Your Answer Gilts offer higher attractive margin , Choice of issuing medium
term and long term bonds , Linking of issues to currency swaps
True/False
Question At Least one principal Lender bank is essential for issue of the
ADR or GDR.
Correct Answer False
True/False
Question In an already booked forward contract, a person may seek early
delivery, extension in period, or cancellation.
Correct Answer True
True/False
Question Bid rate is bidders buying rate and offered rate is bidders selling
rate.
Correct Answer True
True/False
Question Corporates are allowed to raise funds abroad up to $ 15 million
as short term finance if they have EPCG license.
Correct Answer True
True/False
Question Out of 15 member countries in European Union 12 countries commiteed themselves
for a single currency.
Correct Answer False
Your Answer True
True/False
Question In red clause credit some clauses are printed in Red ink.
Correct Answer True
Your Answer True
True/False
Question Transfer of funds for investment abroad is allowed freely.
Correct Answer True
Your Answer False
True/False
Question An Indian importing goods from USA pays dollars in India.
Correct Answer False
Your Answer True
True/False
Question CFR = FOB plus freight paid by seller +insurance paid by seller.
Correct Answer False
Your Answer True
True/False
Question Integrated branches of Commercial banks handle forex transactions as well as
options, swaps, futures, arbitrage operations
Correct Answer True
Your Answer True
True/False
Question Normally the forward contracts are booked for making huge profits.
Correct Answer False
Your Answer False
True/False
Question Head office of ICC is in Paris because of its First President Eliance Clementel.
Correct Answer True
Your Answer False
True/False
Question Till August 1994 India was following the Indirect Methodof Rate quotation.
Correct Answer False
Your Answer False
Correct Answer He can book a sale contract any time from May 2005 till Mid Sept 2005, for
Euro 25000 or less, for maturity last week of Sept.
Your Answer He can book a contract for Forward Purchase, any time from May 2005 till Mid
Sept 2005, for Euro 25000 or less, for maturity last week of Sept.
Your Answer Payment to EOUs in India for services rendered by them , Payment of Gifts of
GBP 5000 per year per donor
True/False
Question PP Form is required when exports are made to any country by post parcel on value
payable basis.
Correct Answer False
Your Answer True
True/False
Question In developed markets, speculators play important role in
determining the trend of currency rates.
Correct Answer True
Your Answer True
True/False
Question Cash flows generated from aforeign project may replace revenue-
producing imports to the host country
Correct Answer False
Your Answer False
True/False
Question Cross currency forward contract is not meaningful if original
contract is in Rupees to USD
Correct Answer True
Your Answer True
True/False
Question Sterling FRNs are issued in Europe, USA ,Asia
Correct Answer False
Your Answer False
True/False
Question The working of the IBRD and IMF in recent has blurred the
difference between the two
Correct Answer True
Your Answer True
True/False
Question Multimodal transport document is also known as
"IntermobileTransport Document"
Correct Answer True
Your Answer True
True/False
Question A small percentage of futures contracts actually result in delivery
of the underlying commodity or security.
Correct Answer True
Your Answer False
True/False
Question The Option period in the forward contract is at the option of the
Banker, hence the bank has to be very conservative in quoting
rates.
Correct Answer False
Your Answer True
True/False
Question Services of a Paying bank are taken when currencies of exporters country
or the importers country is not involved in the transaction.
Correct Answer False
Your Answer House Airway bill , Postal Receipt , On board bill of exchange
Correct Answer The export receivables must be repatriated within six months of the date
of shipment.
Your Answer The export receivables must be repatriated within six months of the date
of shipment.
Correct Answer The issues are different, unique to each project, and solutions are varied
Your Answer The issues are different, unique to each project, and solutions are varied
True/False
Question An Indian importing goods from USA pays dollars in India.
Correct Answer False
Correct Answer Quotation of forex rates, interest rates , Electronic broking by matching the
rates
Your Answer Quotation of forex rates, interest rates , Electronic broking by matching the
rates , Calculate and quote rates for transactions
Correct Answer Interest rates are changing, Interest rates affect and are affected by
exchange rates
Your Answer Interest rates are changing, Interest rates affect and are affected by
exchange rates
Your Answer 26
True/False
Question Cash flows generated from aforeign project may replace revenue-
producing imports to the host country
Correct Answer False
Correct Answer Which are convertible , Which have liquidity confirmed in Euro market
operations
Your Answer Which are convertible , Which have liquidity confirmed in Euro market
operations , which have greater gold parity
True/False
Question Out of 15 member countries in European Union 12 countries commiteed
themselves for a single currency.
Correct Answer False
True/False
Question The American Dollar market comprises of the domestic segment of USD
the offshore segment of USD.
Correct Answer True
True/False
Question Tranche' is a managed issue of securities in smaller denominations.
True/False
Question Prior approval of RBI is needed for payment of all imports.
True/False
Question Cause of increase in cost of public issues Underwriting fees , selling
commission
Correct Answer True
Correct Answer Exemption is granted from the criteria of Core activity stipulation under
automatic route
Your Answer Exemption is granted from the criteria of Core activity stipulation under
automatic route
True/False
Question Bid rate is bidders buying rate and offered rate is bidders selling rate.
Correct Answer True
Your Answer 5
Correct Answer Floating rate notes, bonds, debentures , Syndicate loans, issue of shares
Your Answer Floating rate notes, bonds, debentures , Syndicate loans, issue of shares
Correct Answer Champion the global economy as a force of economic growth , Creating of
job and prosperity
Your Answer Champion the global economy as a force of economic growth , Creating of
job and prosperity
True/False
Question The volume of trading of Derivatives in the world trade market is growing
but still only 5% of the total.
Correct Answer False
Correct Answer Help private enterprise by financing projects , Provide technical assistance
to private enterprise
Your Answer Help private enterprise by financing projects , Provide technical assistance
to private enterprise , Help to maintain the exchange rate stability
Correct Answer The exercise or strike price, the amount , The expiration date and time,
the method of payment
Your Answer The exercise or strike price, the amount , The expiration date and time,
the method of payment , The Market report of the exchange which trades
the option
True/False
Question In a coupon swap the receiver is the one who receives fixed rate
of interest.
Correct Answer True
True/False
Question JV means Joint venture and WOS means World of Security.
Your Answer Purchase and sell foreign currency notes and travellers cheques
True/False
Question Till August 1994 India was following the Indirect Methodof Rate
quotation.
Correct Answer False
True/False
Question Services of a Paying bank are taken when currencies of
exporters country or the importers country is not involved in the
transaction.
Correct Answer False
True/False
Question An Indian importing goods from USA pays dollars in India.
Correct Answer Floating rate notes, bonds, debentures , Syndicate loans, issue
of shares
Your Answer Floating rate notes, bonds, debentures , Syndicate loans, issue
of shares , Futures and Forward Rate agreements
True/False
Question The working of the IBRD and IMF in recent has blurred the
difference between the two
Correct Answer True
True/False
Question Cash flows generated from aforeign project may replace
revenue-producing imports to the host country
Correct Answer False
True/False
Question Resident Individuals in India can acquire foreign bonus shares
on the foreign securities already held by them without prior
approval of RBI
Correct Answer True
Correct Answer The change in value of currency alters the home currency value
of an asset , liability, , The change in value of currency alters the
home currency value of profit, loss, or future cash flows
Your Answer The change in value of currency alters the home currency value
of an asset , liability, , The change in value of currency alters the
home currency value of profit, loss, or future cash flows ,
Certainty of an event which would happen in favour of the
importer/ exporter
True/False
Question Cross currency forward contract is not meaningful if original
contract is in Rupees to USD
Correct Answer True
True/False
Question With the advent of futures and Options there is no need for
additional instruments of risk hedging.
Correct Answer False
True/False
Question In UK in london Market the Indirect Quote Method is still
adopted.
Correct Answer True
True/False
Question The volume of trading of Derivatives in the world trade market is
growing but still only 5% of the total.
Correct Answer False
Correct Answer Through Rule like "Full value of Export bills must be realised in
180 days," , Through Rule like " Export must be denominated In
a currency of the Importing country or a freely convertible
currency"
Your Answer Through Rule like "Full value of Export bills must be realised in
180 days," , Through Rule like " Export must be denominated In
a currency of the Importing country or a freely convertible
currency" , By Issuing a Export Code Number, and monitoring
his exports through returns and statements filed by him
True/False
Question The Negotiating bank examines the documents submitted by the
seller and makes payment if they comply the terms and
conditions of the LC.
Correct Answer True
True/False
Question FRN's issued with ceiling on interest beyond which the issues is
not required to pay interest is known as Mini-Max FRN
Correct Answer True
True/False
Question Phytosanitary/ Radiation/Fumigation certificates are in the
category of Health Certificates
Correct Answer True
True/False
Question The American Dollar market comprises of the domestic segment
of USD the offshore segment of USD.
Correct Answer True
True/False
Question Cash flows generated from aforeign project may replace
revenue-producing imports to the host country
Correct Answer False
True/False
Question In an interest rate swap if the payment schedules are identical,
only diffrence between the two payments is delivered.
Correct Answer True
Correct Answer Gilts offer higher attractive margin , Choice of issuing medium
term and long term bonds
Your Answer Gilts offer higher attractive margin , Choice of issuing medium
term and long term bonds , Linking of issues to currency swaps
True/False
Question Yankee bond is issued for domestic borrowers.
True/False
Question Country risk analysis is a futile exercise in the background of
cost of analysis.
Correct Answer True
Your Answer The goods are put on board a ship for shipment
True/False
Question Cross currency forward contract is not meaningful if original contract is in Rupees to USD
Correct Answer True
Your Answer True
True/False
Question ECGC offers insurance protection to Indian exporters against payment risks.
Correct Answer True
Your Answer True
True/False
Question The American Dollar market comprises of the domestic segment of USD the offshore
segment of USD.
Correct Answer True
Your Answer True
True/False
Question An Indian exporting goods to New York receives dollars in New York.
Correct Answer True
Your Answer True
The First stage in the Europeand and Monetary Union (EMU) Free movement of capital in EC Free
movement of capital in EC
Stage III in EMU Members to meet the convergence criteria and fix the exchange rates Members to
meet the convergence criteria and fix the exchange rates
True/False
Question Bridge Loans are granted for construction of large size bridges, and flyovers.
Correct Answer False
Your Answer True
True/False
Question Integrated branches of Commercial banks handle forex transactions as well as options,
swaps, futures, arbitrage operations
Correct Answer True
Your Answer True
True/False
Question Country risk analysis is a futile exercise in the background of cost of analysis.
Correct Answer True
Your Answer True
True/False
Question In red clause credit some clauses are printed in Red ink.
Correct Answer True
Your Answer True
True/False
Question Out of 15 member countries in European Union 12 countries committed themselves for a
single currency.
Correct Answer False
Your Answer False
Select The Blank
Question FRNs are issued for a maturity period of ________ and are normally redeemed in one
shot.
Correct Answer 5-7 years
Your Answer 5-7 years
True/False
Question Sterling FRNs are issued in Europe, USA ,Asia
Correct Answer False
Your Answer True
True/False
Question In a coupon swap the receiver is the one who receives fixed rate
of interest.
Correct Answer True
True/False
Question Normally the forward contracts are booked for making huge
profits.
Correct Answer False
Correct Answer Right and not the obligation to take or give future delivery of an
agreed quantity at certain price
Your Answer Right and not the obligation to take or give future delivery of an
agreed quantity at certain price
True/False
Question Postal receipt is an acknowledgement of receipt of goods, a
quasi negotiable instrument.
Correct Answer False
True/False
Question Open Insurance policy is for any amount for specific period and
specific number of shipments.
Correct Answer False
True/False
Question Resident Individuals in India can acquire foreign bonus shares
on the foreign securities already held by them without prior
approval of RBI
Correct Answer True
Your Answer False
True/False
Question Both futures and options are traded on a public exchange.
Correct Answer Plus or minus movement of exchange rate around the parity rate
Your Answer Plus or minus movement of exchange rate around the parity rate
True/False
Question An Indian exporting goods to New York receives dollars in New
York.
Correct Answer True
Your Answer False
Correct Answer Which are convertible , Which have liquidity confirmed in Euro
market operations
Your Answer Which have liquidity confirmed in Euro market operations ,
Which are convertible
True/False
Question The American Dollar market comprises of the domestic segment
of USD the offshore segment of USD.
Correct Answer True
True/False
Question Out of 15 member countries in European Union 12 countries
commiteed themselves for a single currency.
Correct Answer False
Your Answer True
True/False
Question JV means Joint venture and WOS means World of Security.
Correct Answer It represents title to goods , It is issued under Sale of Goods act
Your Answer It represents title to goods , It is issued under Sale of Goods act
Correct Answer Arrange for transfer of risk from seller to buyer at a convenient
place
Your Answer Arrange for transfer of risk from seller to buyer at a convenient
place
Correct Answer The change in value of currency alters the home currency value
of an asset , liability, , The change in value of currency alters the
home currency value of profit, loss, or future cash flows
Your Answer The change in value of currency alters the home currency value
of an asset , liability, , The change in value of currency alters the
home currency value of profit, loss, or future cash flows
  Correct AnswerÂ
15 Â
  Your AnswerÂ
20 Â
Â
 Multiple Choice Multiple Answer
  Question ÂThe World Bank Group Consists of
  Correct AnswerÂ
International
 Development
Association , International finance
Corporation , Multinational
Investment Guarantee Agency
  Your AnswerÂ
International
 finance Corporation ,
Multinational Insurance Guarantee
Agency , International Development
Association
Â
 Multiple Choice Single Answer
  Question ÂWhat do you call a 'decreasing
principal swap'?
  Correct AnswerÂ
Amortizing
 swap
  Your AnswerÂ
Amortizing
 swap
Â
 Multiple Choice Single Answer
  Question ÂWho can open an EEFC account?
  Correct AnswerÂ
Individuals
 , firms, companies,
resident in India
  Your AnswerÂ
Individuals
 , firms, companies,
resident in India
Â
 Select The Blank
  Question ÂEUROCLEAR, CEDEL are the
names of ________ related with the
issue of GDR.
  Correct AnswerÂ
Registrars
Â
  Your AnswerÂ
Registrars
Â
Â
 True/False
  Question ÂAn Indian importing goods from USA
pays dollars in India.
  Correct AnswerÂ
False Â
  Your AnswerÂ
True
Â
Â
 Multiple Choice Multiple Answer
  Question ÂHow does a company use swap to
restructure debt, in its balance
sheet?
  Correct AnswerÂ
By resorting
 to floating rate from
fixed rate , By resorting to fixed rate
from floating rate
  Your AnswerÂ
By resorting
 to floating rate from
fixed rate , By resorting to fixed rate
from floating rate
Â
 Multiple Choice Single Answer
  Question ÂHow many Countries participated in
the third survey on Foreign
Exchange, coordinated by BIS in
1992?
  Correct AnswerÂ
26 Â
  Your AnswerÂ
26 Â
Â
 True/False
  Question ÂIn red clause credit some clauses
are printed in Red ink.
  Correct AnswerÂ
True Â
  Your AnswerÂ
False
Â
Â
 Select The Blank
  Question ÂThe rate of interest on rupee finance
for exports is not exceeding
________ less than PLR.
  Correct AnswerÂ
0.025 Â
  Your AnswerÂ
50 basis
 points over LIBOR
Â
 Multiple Choice Multiple Answer
  Question ÂFor issuing a Documentary credit
The applicant is required to provide
to the issuing bank details about
  Correct AnswerÂ
The purchase-sales
 contract, the
mode of payment, the tenor of
payment , The documents required,
the names of authorities who would
issue the documents
  Your AnswerÂ
TheÂpurchase-sales contract, the
mode of payment, the tenor of
payment , The track record of the
buyer and seller
Â
 Multiple Choice Single Answer
  Question ÂExchange Rate means
  Correct AnswerÂ
Value Â
of one currency in terms of
another
  Your AnswerÂ
Value
 of one currency in terms of
another
Â
 Multiple Choice Single Answer
  Question ÂWhat do you understand by 'bill of
lading in a quasi negotiable
instrument'?
  Correct AnswerÂ
It is a document
 of title to goods and
its negotiation may not be complete
and free from qualification.
  Your AnswerÂ
It isÂa document of title to goods and
its negotiation may not be complete
and free from qualification.
Â
 Multiple Choice Single Answer
  Question ÂWhere does the word derivative
originate from?
  Correct AnswerÂ
Mathematics
Â
  Your AnswerÂ
Mathematics
Â
Â
 Multiple Choice Multiple Answer
  Question ÂWhat options does the merchant
have while booking a forward
contract?
  Correct AnswerÂ
Delivery
 on a Fixed date, within six
months , Delivery on a date between
two days separated by a period of
maximum one month
  Your AnswerÂ
Delivery
 on a Fixed date, within six
months , Delivery on a date between
two days separated by a period of
maximum one month , A day within
next 1 year
Â
 Select The Blank
  Question ÂEEFC account holder is allowed to
have ________ facility.
  Correct AnswerÂ
Cheque
 book and nomination
  Your AnswerÂ
Cheque
 book and nomination
Â
 True/False
  Question ÂA small percentage of futures
contracts actually result in delivery of
the underlying commodity or
security.
  Correct AnswerÂ
True Â
  Your AnswerÂ
TrueÂ
Â
 True/False
  Question ÂLong in futures means a
commitment to sell futures at a
future date.
  Correct AnswerÂ
False Â
  Your AnswerÂ
True
Â
Â
 Multiple Choice Multiple Answer
  Question ÂWhat are the categories of
exposures, a person faces in
International trade?
  Correct AnswerÂ
Transaction
 exposure , Translation
exposure
  Your AnswerÂ
Transaction
 exposure , Translation
exposure
Â
 True/False
  Correct AnswerÂ
True Â
  Your AnswerÂ
True
Â
Â
 Multiple Choice Multiple Answer
  Question ÂThe participants in the Forex
Markets are :-
  Correct AnswerÂ
Non banking
 entities wishing to
exchange currencies, , Banks and
their clients , Speculators,
arbitragers
  Your AnswerÂ
NonÂbanking entities wishing to
exchange currencies, , Banks and
their clients , Speculators,
arbitragers
  Correct AnswerÂ
Control
 by Government'
  Your AnswerÂ
Predictability
Â
Â
 Multiple Choice Multiple Answer
  Question ÂCriteria for Direct investment abroad
under normal route :-
  Correct AnswerÂ
Viability
 of the proposal, and
excellent track record of business ,
Experience and expertise of
promoters, benefit to the country
  Your AnswerÂ
Viability
 of the proposal, and
excellent track record of business ,
Experience and expertise of
promoters, benefit to the country
Â
 True/False
  Question ÂPP Form is required when exports
are made to any country by post
parcel on value payable basis.
  Correct AnswerÂ
False Â
  Your AnswerÂ
True
Â
Â
 Multiple Choice Multiple Answer
  Question ÂThe investor is in the money when :-
  Correct AnswerÂ
The exercise
 price is below the spot
price for a call option , The exercise
price is above the spot price for a
put option
  Your AnswerÂ
TheÂexercise price is above the spot
price for a put option , The exercise
price is below the spot price for a put
option
Â
 Multiple Choice Single Answer
  Question ÂUnder which category of exchange
rate did the Indian Rupee came from
June 92?
  Correct AnswerÂ
Other Â
managed Floating
  Your AnswerÂ
Independently
 floating
Â
 Multiple Choice Single Answer
  Question ÂFinancial management is complex
process for
  Correct AnswerÂ
Companies
 which have international
trade
  Your AnswerÂ
Cooperative
 societies abroad
Â
 Select The Blank
  Question ÂThe Trans European Automated
Real Time Gross Settlement
Express Transfer is popular in
________.
  Correct AnswerÂ
Brussels
Â
  Your AnswerÂ
Frankfurt
Â
Â
 Multiple Choice Multiple Answer
  Question ÂWhat is the duty of the AD while
booking a forward contract?
  Correct AnswerÂ
Verify Â
the suitable documentary
evidence, and that the customer is
exposed to risk , Ensure that a
genuine transaction exists
  Your AnswerÂ
Verify
 the suitable documentary
evidence, and that the customer is
exposed to risk , Ensure that a
genuine transaction exists , Protect
the customer fully from exchange
risk
Â
 Select The Blank
  Question ÂEven after liberalisation of exchange
controls, the Euro sterling market
remained volatile because of
uncertainties in UK and gyrations of
sterling against major ________
countries
  Correct AnswerÂ
OECDÂ
  Your AnswerÂ
OECD
Â
Â
 Multiple Choice Single Answer
  Question ÂWith whom can an exporter or
importer book the forward contract?
  Correct AnswerÂ
Authorised
 dealer/Authorised person
  Your AnswerÂ
AnyÂbank in India
Â
 Select The Blank
  Correct AnswerÂ
Cash Incentives
Â
  Your AnswerÂ
LineÂof credit
  Correct AnswerÂ
USD 1=Rs
 50.5000
  Your AnswerÂ
USD
 1=Rs 50.5000 + margin
Â
 True/False
  Question ÂThe Euro Commercial paper is
supported by a team-syndicated
credit with both sides of the
transaction combined into one
operation.
  Correct AnswerÂ
True Â
  Your AnswerÂ
True
Â
Â
 Multiple Choice Multiple Answer
  Correct AnswerÂ
American
 option , European Option
  Your AnswerÂ
American
 option , European Option
Â
 Select The Blank
  Question ÂIn mid 1992 ________ rejected the
ratification of Maastricht treaty
  Correct AnswerÂ
Denmark
Â
  Your AnswerÂ
UK Â
Â
  Correct AnswerÂ
Issuing various insurance policies
covering different risks connected
with exports at nominal premium
  Your AnswerÂ
Issuing
 various guarantees covering
different risks connected with
exports at nominal premium,
Â
 Match The Following
Question Correct Your Answer
Answer
Swap price Difference in Difference in prices of
prices of two two legs of buying and
legs of selling
buying and
selling
Euro Market Market in Market in Euro
Euro currencies
currencies
Making market Quoting rate Quoting rate for both
for both buying and selling a
buying and currency
selling a
currency
Spread Price Price difference
difference between bid and offer
between bid
and offer
Â
 True/False
  Question ÂCountry risk analysis is a futile
exercise in the background of cost of
analysis.
  Correct AnswerÂ
True Â
  Your AnswerÂ
False
Â
Â
 Multiple Choice Single Answer
  Question ÂWhat is the volume of the world's
average daily transactions in foreign
exchange?
  Correct AnswerÂ
USD 1Âtrillion
  Your AnswerÂ
USD Â 1 trillion
Â
 Multiple Choice Multiple Answer
  Question ÂIn DAF, the frontier means :-
  Correct AnswerÂ
Frontier
 of exporter's country ,
Frontier of importer's country
  Your AnswerÂ
Frontier
 of exporter's country ,
Frontier of importer's country
Â
 True/False
  Question ÂIn an interest rate swap if the
payment schedules are identical,
only diffrence between the two
payments is delivered.
  Correct AnswerÂ
True Â
  Your AnswerÂ
True
Â
Â
 Select The Blank
  Question ÂThe option which can be exercised
on the maturity date and not before it
is known as________.
  Correct AnswerÂ
European
 Option
  Your AnswerÂ
European
 Option
Â
 True/False
  Correct AnswerÂ
True Â
  Your AnswerÂ
True
Â
Â
 Multiple Choice Multiple Answer
  Question ÂAt the request of M/s Universal
Traders Calcutta, State Bank of
India opened a documentary credit
in Favour of M/s Star Trading Co
Dubai, for USD 25000/-.Here State
Bank of India Calcutta is known as
  Correct AnswerÂ
Issuing Bank , Opening Bank
  Your AnswerÂ
Issuing
 Bank , Confirming Bank
Â
 Select The Blank
  Question ÂUnder the ________ standard the
Country's Central Bank promised to
buy back the currency at certain rate
of Gold.
  Correct AnswerÂ
Gold Â
  Your Gold
Answer  Â
Multiple Choice Multiple Answer
Âoice Multiple Answer
  Question ÂThe World Bank Group Consists of
  Correct AnswerÂ
International
 Development
Association , International finance
Corporation , Multinational
Investment Guarantee Agency
  Your AnswerÂ
International
 Development
Association , International finance
Corporation , Multinational
Investment Guarantee Agency
Â
 Multiple Choice Single Answer
  Question ÂEquity can be raised internationallly
by a company through :-
  Correct AnswerÂ
Fund raising,
 underwriting, hedging ,
arbitration operations
  Your AnswerÂ
Floating
 debt instruments
Â
 True/False
  Question ÂIn an interest rate swap if the
payment schedules are identical,
only diffrence between the two
payments is delivered.
  Correct AnswerÂ
True Â
  Your AnswerÂ
True
Â
Â
 Select The Blank
  Question ÂThe large flow of money
internationally was caused primarily
by the oil price hikes engineered by
________.
  Correct AnswerÂ
OPECÂcountries
  Your AnswerÂ
European
 Countries
Â
 Select The Blank
  Question Â________ enables bankers to
extend purchase, negotiation or
discount of export bills.
  Correct AnswerÂ
Post shipment
 credit guarantee
  Your AnswerÂ
Export
 finance guarantee
Â
 Multiple Choice Multiple Answer
  Question ÂWhich non financial service does
EXIM Bank give to an exporter?
  Correct AnswerÂ
Provide
 Technical and administrtive
support , Planning, promoting and
developing export oriented
Industries
  Your AnswerÂ
Provide
 Technical and administrtive
support , Planning, promoting and
developing export oriented
Industries
Â
 Multiple Choice Multiple Answer
  Question ÂWhich debits are permitted to EEFC
accounts?
  Correct AnswerÂ
Payment
 of hotel bills abroad,
payment for expenses on Heart
operation abroad , Payment to
EOUs in India for services rendered
by them
  Your AnswerÂ
Payment
 of hotel bills abroad,
payment for expenses on Heart
operation abroad , Payment to
EOUs in India for services rendered
by them
Â
 True/False
  Question ÂTerms in an Irrevocable credit can
not be alterred at all.
  Correct AnswerÂ
False Â
  Your AnswerÂ
TrueÂ
Â
 Multiple Choice Single Answer
  Question ÂHow many INCOTERMS are there in
"Departure" Group?
  Correct AnswerÂ
One Â
  Your AnswerÂ
OneÂ
Â
 Multiple Choice Single Answer
  Question ÂHow does ICC access Govt and
influence Governmental decisions?
  Correct AnswerÂ
Through national committees
  Your AnswerÂ
Through
 national committees
Â
 Multiple Choice Multiple Answer
  Question ÂA Usance bill of exchange may be
drawn in 2 ways. Which are they?
  Correct AnswerÂ
Documents
 against payment ,
Documents against acceptance
  Your AnswerÂ
Documents
 against payment ,
Documents against acceptance
Â
 Multiple Choice Single Answer
  Question ÂName the single most important
factor which may devastate the
economic viability of an operation in
international trade :-
  Correct AnswerÂ
Unfavourable
 fluctuation in the
exchange rate
  Your AnswerÂ
Unfavourable
 fluctuation in the
exchange rate
Â
 True/False
  Question ÂThe Euro Commercial paper is
supported by a team-syndicated
credit with both sides of the
transaction combined into one
operation.
  Correct AnswerÂ
True Â
  Your AnswerÂ
TrueÂ
Â
 Select The Blank
  Question ÂWhen interest rate changes by 0.05
per cent then it has changed
________ basis points.
  Correct AnswerÂ
50 Â
  Your AnswerÂ
50 Â
Â
 Select The Blank
  Question ÂIndia is a founder member of
________.
  Correct AnswerÂ
IMF Â
  Your AnswerÂ
BANKNET
Â
Â
 Multiple Choice Single Answer
  Question ÂHow many types of documents are
required in the International trade?
  Correct AnswerÂ
Six Â
  Your AnswerÂ
Six Â
Â
 Multiple Choice Multiple Answer
  Question ÂExport finance
  Correct AnswerÂ
Preshipment
 credit , Post shipment
credit , Duty Draw back
  Your AnswerÂ
Preshipment
 credit , Post shipment
credit , Buyers credit
Â
 Select The Blank
  Question ÂWhen a credit is made to available
to additional beneficiary wholly or
partly it is called as ________.
  Correct AnswerÂ
Transferable
 credit
  Your AnswerÂ
Transferable
 credit
Â
 True/False
  Question ÂA small percentage of futures
contracts actually result in delivery of
the underlying commodity or
security.
  Correct AnswerÂ
True Â
  Your AnswerÂ
True Â
Â
 Select The Blank
  Question ÂAn exchange rate for $ was48.2050,
it is now 48.2075, then one says that
it has moved ________ basis points
  Correct AnswerÂ
25 Â
  Your AnswerÂ
0.0025
Â
Â
 True/False
  Question ÂTransfer of funds for investment
abroad is allowed freely.
  Correct AnswerÂ
True Â
  Your AnswerÂ
True
Â
Â
 Select The Blank
  Question ÂThe rate of interest on rupee finance
for exports is not exceeding
________ less than PLR.
  Correct AnswerÂ
0.025 Â
  Your AnswerÂ
0.025
Â
Â
 Multiple Choice Multiple Answer
  Question ÂWhat do you understand by 'Foreign
Exchange Risk'?
  Correct AnswerÂ
The change
 in value of currency
alters the home currency value of an
asset , liability, , The change in value
of currency alters the home currency
value of profit, loss, or future cash
flows
  Your AnswerÂ
Certainty
 of an event which would
happen in favour of the importer/
exporter , Inability to control various
factors contributing to International
trade
Â
  Your AnswerÂ
12.5Â
  Correct AnswerÂ
DDP Â
  Your AnswerÂ
DDU Â
Â
 True/False
  Question ÂDealing room is a place where the
actual exchange of currencies takes
place phsically at predetermined
rates.
  Correct AnswerÂ
False Â
  Your AnswerÂ
True
Â
Â
 Multiple Choice Single Answer
  Question ÂWhat was the reason for launching
swap as an risk hedging instrument?
  Correct AnswerÂ
To avoid
 the effects of currency
control imposed in UK
  Your AnswerÂ
To avoid
 the effects of currency
control imposed in UK
Â
 Select The Blank
  Question ÂThe creditworthiness of futures
exchange is maintained through
imposition of ________.
  Correct AnswerÂ
MarginÂ
  Your AnswerÂ
Margin
Â
Â
 True/False
  Question ÂIn forward sales, the delivery refers
to actual cash flows on due date.
  Correct AnswerÂ
True Â
  Your AnswerÂ
TrueÂ
Â
 Multiple Choice Multiple Answer
  Question ÂIn a documentary credit the word
document means :-
  Correct AnswerÂ
Specified
 documents of title,
transportation, insurance , Specified
certificates, and other papers
required as per the regulations in the
buyers country
  Your AnswerÂ
Specified
 documents of title,
transportation, insurance , Specified
certificates, and other papers
required as per the regulations in the
buyers country , Credit is
documented as an evidence
Â
 True/False
  Question ÂThe amount in EEFC account can
be deposited in FCNR account to
get interest.
  Correct AnswerÂ
False Â
  Your AnswerÂ
True
Â
Â
 True/False
  Question ÂADR Level I, is the final step to enter
US erquity market.
  Correct AnswerÂ
False Â
  Your AnswerÂ
False
Â
Â
 Multiple Choice Multiple Answer
  Question ÂAs per BIS, recovery from the recent
crisis in global capital market was
mainly due to
  Correct AnswerÂ
Rapid Âand appropriate policy
response in US and other countries ,
Increase in Foreign Direct
Investments , free flow of credit
  Your AnswerÂ
Rapid
 and appropriate policy
response in US and other countries ,
Increase in Foreign Direct
Investments , free flow of credit ,
Devaluation of currencies
Â
 Multiple Choice Multiple Answer
  Question ÂWhat is the effect of cross currency
option on the customer?
  Correct AnswerÂ
He gets
 the flexibility to exposure ,
He is exposed to additional risk of
movement of rates between 3
currencies
  Your AnswerÂ
He Âgets the flexibility to exposure ,
His profit increases
Â
 Multiple Choice Single Answer
  Question ÂIn case the value date happens to
be a holiday then the settlement is
done :-
  Correct AnswerÂ
On theÂnext working day
  Your AnswerÂ
On Â
the next working day
Â
 Select The Blank
  Question ÂAfter the second world war many
countries adopted the route of
________ to give facelift to sagging
economies.
  Correct AnswerÂ
Devaluation
 of their currencies
  Your AnswerÂ
Devaluation
 of their currencies
Â
 Select The Blank
  Question Â________Bill of lading must specify
the name of the ship.
  Correct AnswerÂ
"On Board"
Â
  Your AnswerÂ
"OnÂBoard"
Â
 Multiple Choice Single Answer
  Question ÂWhose permission was necessary
for forming the Association of
Foreign Exchange Dealers, in India?
  Correct AnswerÂ
Reserve
 Bank of India
  Your AnswerÂ
Reserve
 Bank of India
Â
 Match The Following
Question Correct Your Answer
Answer
European On or after On or after maturity
option maturity
Out of money Loss Loss
In the money Profit Profit
American Before Before maturity
option maturity Â
Multiple Choice Multiple Answer
Âoice Multiple Answer
  QuestionÂ
The ÂWorld Bank Group Consists
of
  CorrectInternational
Answer  Development
  Your AnswerÂ
International
 Development
Association , International finance
Corporation , Multinational
Investment Guarantee Agency
Â
 Multiple Choice Single Answer
  QuestionÂ
Equity
 can be raised
internationallly by a company
through :-
  CorrectFund
AnswerÂ
raising,
 underwriting,
hedging , arbitration operations
  Your AnswerÂ
FloatingÂdebt instruments
Â
 Multiple Choice Single Answer
  QuestionÂ
Financial
 management is complex
process for
  CorrectCompanies
Answer Âwhich have
international trade
  Your AnswerÂ
Companies which have
international trade
Â
 True/False
  QuestionÂ
Import
 finance is nomally
available at rates of interest
cheaper than domestic finance
rates.
  CorrectFalse
Answer Â
  Your AnswerÂ
False Â
Â
 Select The Blank
  QuestionÂ
The Âstock of foreign reserves in
India, is now around ________ %
of the GDP and exceeds money
circulation.
  Correct15
Answer Â
  Your AnswerÂ
12.5 Â
Â
 Multiple Choice Single Answer
  QuestionÂ
Which
 type of Convertibility of
Rupee launched in March 1992 ?
  CorrectLimited
AnswerÂconvertibility
Â
  Your AnswerÂ
Convertibility
 on current account
Â
 Multiple Choice Multiple Answer
  QuestionÂ
HowÂdoes a company use swap to
restructure debt, in its balance
sheet?
  CorrectByAnswerÂ
resorting
 to floating rate from
fixed rate , By resorting to fixed
rate from floating rate
  Your AnswerÂ
By resorting
 to fixed rate from
floating rate , Prepayment of
existing debts , Raising new loans
Â
 Multiple Choice Single Answer
  QuestionÂ
Punjab
 National Bank Mumbai
Branch quoted USD 1= Rs
50.5000/52.5050. Which is the
offered rate for Rs?
  CorrectUSD
AnswerÂ
1=RsÂ50.5000
  Your AnswerÂ
USD 1=Rs
 50.5000 + margin
Â
 Multiple Choice Multiple Answer
  QuestionÂ
What
 facilities are proposed by
Sodhani Committee for NRIs?
  CorrectHousing
AnswerÂLoan
 to NRI staff of
Indian Companies, , NRIs be
permitted to invest in MMMF
  Your AnswerÂ
HousingÂLoan to NRI staff of
Indian Companies, , NRIs be
permitted to invest in MMMF ,
Permission to sale shares under
Port folio investment be denied
Â
 Multiple Choice Multiple Answer
  QuestionÂ
Which
 document is used for
transportation by air, rail, road,
marine?
  CorrectMultimodal
Answer Âtransport document ,
Combined Transport document
  Your AnswerÂ
Multimodal
 transport document ,
Combined Transport document
Â
 Multiple Choice Single Answer
  QuestionÂ
Under
 which contracts the seller
pays the import duty for the
buyer?
  CorrectDDP
Answer Â
  Your AnswerÂ
DDU Â
Â
 True/False
  QuestionÂ
Dealing
 room is a place where the
actual exchange of currencies
takes place phsically at
predetermined rates.
  CorrectFalse
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Single Answer
  QuestionÂ
What was the reason for
launching swap as an risk
hedging instrument?
  CorrectTo
AnswerÂ
avoid the
 effects of currency
control imposed in UK
  Your AnswerÂ
To avoidÂthe effects of currency
control imposed in UK
Â
 Select The Blank
  QuestionÂ
The Âcreditworthiness of futures
exchange is maintained through
imposition of ________.
  CorrectMargin
Answer Â
  Your AnswerÂ
Margin Â
Â
 True/False
  QuestionÂ
In forward
 sales, the delivery
refers to actual cash flows on due
date.
  CorrectTrue
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
In a Â
documentary credit the word
document means :-
  CorrectSpecified
AnswerÂdocuments
 of title,
transportation, insurance ,
Specified certificates, and other
papers required as per the
regulations in the buyers country
  Your Specified documents of title,
Answer transportation, insurance , Â
Multiple Choice Single Answer
ÂChoice Single Answer
  QuestionÂ
In which
 of the funding facilities the
repayment period is between 3 to 5 years ?
  CorrectC.C.F.F.
Answer Â
  Your AnswerÂ
Stand By
 Arrangement
Â
 Multiple Choice Single Answer
  QuestionÂ
Samuraibonds
 are
  CorrectForeign
Answer yen
 bonds issued to non resident
entities in Japanese Market
  Your AnswerÂ
Foreign  yen bonds issued to non resident
entities in Japanese Market
Â
 Match The Following
Question Correct Answer Your
Answer
  QuestionÂ
Samuraibonds
 are
  CorrectForeign
Answer yen
 bonds issued to non resident
entities in Japanese Market
  Your AnswerÂ
Foreign  yen bonds issued to non resident
entities in Japanese Market
Â
  QuestionÂ
In the
 context of International economy ,the
period between 1920s and 1930s is known as
  CorrectGreat
AnswerÂ
Depression
Â
  Your AnswerÂ
Great Depression
Â
Â
  QuestionÂ
Sterling
 Market is attractive for an
international investor because
  CorrectGilts
AnswerÂ
offer higher
 attractive margin , Choice of
issuing medium term and long term bonds
  Your AnswerÂ
Gilts offer
 higher attractive margin , Choice of
issuing medium term and long term bonds ,
Linking of issues to currency swaps
Â
 Select The Blank
  QuestionÂ
When interest rate changes by 0.05 per cent
then it has changed ________ basis points.
  Correct50
Answer Â
  Your AnswerÂ
500 Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
Internationally
 only those currencies are in
demand
  CorrectWhich
AnswerÂare Â
convertible , Which have liquidity
confirmed in Euro market operations
  Your AnswerÂ
Which are convertible , Which have liquidity
confirmed in Euro market operations , Which
have greater intrinsic value
Â
 Select The Blank
  QuestionÂ
AfterÂthe second world war many countries
adopted the route of ________ to give facelift
to sagging economies.
  CorrectDevaluation
Answer  of their currencies
  Your AnswerÂ
Devaluation
 of their currencies
Â
 Multiple Choice Multiple Answer
  QuestionÂ
HowÂdoes RBI control Exports?
  CorrectThrough
AnswerÂRule
 like "Full value of Export bills
must be realised in 180 days," , Through Rule
like " Export must be denominated In a
currency of the Importing country or a freely
convertible currency"
  Your AnswerÂ
ThroughÂRule like "Full value of Export bills
must be realised in 180 days," , Through Rule
like " Export must be denominated In a
currency of the Importing country or a freely
convertible currency" , By Issuing a Export
Code Number, and monitoring his exports
through returns and statements filed by him
Â
 Select The Blank
  QuestionÂ
OverÂthe years ________has been the most
widely accepted currency in international
capital market.
  CorrectAmerican
Answer Dollar
Â
  Your AnswerÂ
American
 Dollar
Â
 Select The Blank
  QuestionÂ
Any Â
company involved in foreign exchange
transactions is exposed to ________ risk.
  CorrectCurrency
Answer Â
  Your AnswerÂ
PaymentÂ
Â
 True/False
  QuestionÂ
An ADÂ can book a forward contract for a part
of the amount of Sale Contract
  CorrectTrue
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Single Answer
  QuestionÂ
WhyÂdoes a person need protection from
unfavourable movement of exchange rate?
  CorrectUnfavourable
Answer  fluctuations in exchange rate
can wipe out the normal business profit
  Your AnswerÂ
He wants
 to make profit
Â
 Match The Following
Question Correct Answer Your
Answer
 True/False
  QuestionÂ
Transfer
 of funds for investment abroad is
allowed freely.
  CorrectTrue
Answer Â
  Your AnswerÂ
True Â
Â
 True/False
  QuestionÂ
The ÂOption period in the forward contract is at
the option of the Banker, hence the bank has
to be very conservative in quoting rates.
  CorrectFalse
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Single Answer
  QuestionÂ
What are the powers of money changers?
  CorrectPurchase
Answer and sell foreign currency notes and
travellers cheques
  Your AnswerÂ
Purchase  and sell foreign currency notes and
travellers cheques
Â
 Select The Blank
  QuestionÂ
________
 is drawn by taking mean of the bid
and offered rates.
  CorrectMiddle
AnswerÂrateÂ
  Your AnswerÂ
Basic rate
Â
Â
 True/False
  QuestionÂ
The Âcredit rating of World Bank is high in the
world Capital market because it operates at
the debt equity ratio of 1:2
  CorrectFalse
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
What are the activities of ICC?
  CorrectAribtration
Answer  and dispute resolving , Canvass
for open trade combat commercial crime
  Your AnswerÂ
Aribtration
 and dispute resolving , Canvass
for open trade combat commercial crime
Â
 Multiple Choice Single Answer
  QuestionÂ
Whose permission was necessary for forming
the Association of Foreign Exchange Dealers,
in India?
  CorrectReserve
AnswerÂBank
 of India
  Your AnswerÂ
ReserveÂBank of India
Â
 Match The Following
Question Correct Answer Your
Answer
 True/False
  QuestionÂ
Tranche'
 is a managed issue of securities in
smaller denominations.
  CorrectTrue
Answer Â
  Your AnswerÂ
True Â
Â
  QuestionÂ
A Documentary
 credit issued on the strength
of another documentary credit is known as
________.
  CorrectBack
AnswerÂ
to Back
 credit
  Your AnswerÂ
Back to ÂBack credit
Â
  QuestionÂ
Till August
 1994 India was following the
Indirect Methodof Rate quotation.
  CorrectFalse
Answer Â
  Your AnswerÂ
True Â
Â
  QuestionÂ
Which
 debits are permitted to EEFC
accounts?
  CorrectPayment
AnswerÂofÂhotel bills abroad, payment for
expenses on Heart operation abroad ,
Payment to EOUs in India for services
rendered by them
  Your AnswerÂ
Payment of hotel bills abroad, payment for
expenses on Heart operation abroad ,
Payment to EOUs in India for services
rendered by them , Investment abroad in
stocks and shares by an Individual
Â
 True/False
  QuestionÂ
Normally
 the forward contracts are booked
for making huge profits.
  CorrectFalse
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
Which
 factors influence the valuation of cash
flows?
  CorrectIncomplete
Answer Âcapital market , Availability of
projkect specific concessional finance,
  Your AnswerÂ
Incomplete  capital market , Rates of inflation,
, volatility of exchange rates
Â
 True/False
  QuestionÂ
Indian
 companies are now allowed to freely
invest abroad up to $1.5 million, raised
through GDE or EEFC without prior
permission from RBI.
  CorrectFalse
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
Name  the services provided by 'Reuter 3000'
in forex market:-
  CorrectQuotation
Answer of forex rates, interest rates ,
Electronic broking by matching the rates
  Your AnswerÂ
Quotation
 of forex rates, interest rates ,
Electronic broking by matching the rates ,
Calculate and quote rates for transactions
Â
 Multiple Choice Multiple Answer
  QuestionÂ
Underwriters
 are more attracted to NIF issue
because of :-
  CorrectLesser
AnswerÂ
risks
 , Increased returns , Easy
marketability features
  Your AnswerÂ
Lesser risks
 , Increased returns , High
underwriting fees
Â
 Multiple Choice Multiple Answer
  QuestionÂ
In which
 cases can a Resident Individual in
India acquire foreign securities without prior
approval?
  CorrectGift
AnswerÂ
from aÂperson outside India, or
Inheritance from a person resident in or
outside India , Security issued under
Cashless employees stock option scheme
  Your AnswerÂ
Gift fromÂa person outside India, or
Inheritance from a person resident in or
outside India , Security issued under
Cashless employees stock option scheme ,
Purchased from NRO/NRNR accounts
Â
 Select The Blank
  QuestionÂ
A ________
 Bill of lading does not specify the
terms and conditions of carriage.
  CorrectShort
AnswerÂ
FormÂ
  Your AnswerÂ
Dirty Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
What  does a speculator accept while dealing
with an option?
  CorrectThe
AnswerÂ
exercise
 or strike price, the amount , The
expiration date and time, the method of
payment
  Your AnswerÂ
The exercise
 or strike price, the amount , The
expiration date and time, the method of
payment
Â
 Multiple Choice Single Answer
  QuestionÂ
For a
 spot transaction carried out on
Thursday, currencies will be exchanged on :-
  CorrectMonday
Answer Â
  Your AnswerÂ
Friday Â
Â
 Multiple Choice Single Answer
  QuestionÂ
Inhow
 many groups are INCOTERMS
classified?
  CorrectFour
Answer Â
  Your AnswerÂ
Four Â
Â
 Select The Blank
  QuestionÂ
In ________
 transaction the delivery is
postponed from the agreed date.
  CorrectRollover
Answer Â
  Your AnswerÂ
Future Â
Â
 True/False
  QuestionÂ
Phytosanitary/
 Radiation/Fumigation
certificates are in the category of Health
Certificates
  CorrectTrue
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
What is the objective of FEDAI?
  CorrectLaying
AnswerÂ
down terms and conditions of
exchange business between Customers and
Bankers , Interbank understanding for
transacting forex business and exchange
rates
  Your AnswerÂ
Laying down
 terms and conditions of
exchange business between Customers and
Bankers , Growth of Indian Exports , Ensure
the profitability of Forex business to the
banks
Â
 True/False
  QuestionÂ
Out Âof 15 member countries in European
Union 12 countries commiteed themselves
for a single currency.
  CorrectFalse
Answer Â
  Your AnswerÂ
True Â
Â
 Select The Blank
  QuestionÂ
For setting
 up joint ventures abroad or equity
participation abroad, EXIM bank provides
funds under ________ Scheme.
  CorrectOverseas
Answer investment
 facility
  Your AnswerÂ
Equity Participation
 scheme
Â
 Multiple Choice Multiple Answer
  QuestionÂ
HowÂis the entry into any conuntry's money
market or capital market is restricted?
  CorrectBecause
AnswerÂofÂdifferent tax systems , Because
of different credit standards
  Your AnswerÂ
BecauseÂof different tax systems , Because
of different credit standards , Because of
resistance by dealer's associations
Â
 Select The Blank
  QuestionÂ
A Bill of exchange payable 45 days from date
of shipment, is a means of ________ from
seller to the buyer.
  CorrectCredit
Answer Â
  Your Payment Â
  QuestionÂ
Forward
 margin makes a currency cheaper
then the currency is at ________.
  CorrectDiscount
Answer Â
  Your AnswerÂ
PAR Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
Which
 of these are not considered as good
securities by the banker?
  CorrectHouse
AnswerÂAirway
 bill , Postal Receipt
  Your AnswerÂ
Postal Receipt
 , House Airway bill
Â
 Multiple Choice Single Answer
  QuestionÂ
The ÂDirect Investment abroad through share
swap arrangement under normal route is
permitted in a :-
  CorrectJV/WOS
Answer Â
  Your AnswerÂ
JV/WOSÂ
Â
 Multiple Choice Single Answer
  QuestionÂ
WhoÂintroduced the worlds first exchange
traded currency futures?
  CorrectChicago
AnswerÂMercantile
 Exchange
  Your AnswerÂ
ChicagoÂMercantile Exchange
Â
 Multiple Choice Multiple Answer
  QuestionÂ
WithÂreference to ECB, fund raising activity
includes :-
  CorrectFloating
Answer rate
 notes, bonds, debentures ,
Syndicate loans, issue of shares
  Your AnswerÂ
FloatingÂrate notes, bonds, debentures ,
Syndicate loans, issue of shares
Â
 Select The Blank
  QuestionÂ
An option
 on a future is ________.
  CorrectDerivative
Answer  on a derivative
  Your AnswerÂ
Irrelevant
Â
Â
 Multiple Choice Single Answer
  QuestionÂ
HowÂdoes ICC help poor countries?
  CorrectAttract
AnswerÂForeign
 Direct investments togeather
with UNCTAD
  Your AnswerÂ
Attract Foreign
 Direct investments togeather
with UNCTAD
Â
 Multiple Choice Multiple Answer
  QuestionÂ
Which  functions does the Bill of Lading
serve?
  CorrectItAnswerÂ
is a document
 of title to goods. , It is receipt
of goods
  Your AnswerÂ
It is a document
 of title to goods. , It is receipt
of goods
Â
 Match The Following
  QuestionÂ
For a
 spot transaction carried out on
Tuesday, where both centers have holiday on
Wednesday, currencies will be exchanged on
:-
  CorrectThursday
AnswerÂifÂit is a working day at both the
centers
  Your AnswerÂ
Thursday if it is a working day at both the
centers
Â
 Match The Following
Question Correct Answer Your
Intolerable Drop the investment project Cost of
risk evluation
does not
justify
analysis
Country Cost of evluation does not justify Continue
risk analysis the project
Stock Banks are ahead Banks are
market ahead
analysis
Weightag Factors' values Factors'
es % values
Â
 True/False
  QuestionÂ
Bid rate
 is bidders buying rate and offered
rate is bidders selling rate.
  CorrectTrue
Answer Â
  Your AnswerÂ
True Â
Â
 True/False
  QuestionÂ
Resident
 Individuals in India can acquire
foreign bonus shares on the foreign securities
already held by them without prior approval of
RBI
  CorrectTrue
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
What do you understand by Commercial
Risk?
  CorrectProtracted
Answer Âdefault by the buyer , Insolvency of
the buyer
  Your AnswerÂ
Protracted default by the buyer , Insolvency of
the buyer , Risk of strikes due to which
commercial activity is haulted
Â
 Multiple Choice Single Answer
  QuestionÂ
A billÂof exchange issued by a bank which
pays specified sum of money to the holder on
a specific date is called :-
  CorrectBankers'
AnswerÂAcceptance
 Bond
  Your AnswerÂ
Usance ÂBill of Exchange
Â
 Select The Blank
  QuestionÂ
Association
 of several scheduled commercial
banks for forex business is ________.
  CorrectForeign
Answer Exchange
 Dealers Association of
India
  Your AnswerÂ
Foreign ÂExchange Dealers Association of
India
Â
 Select The Blank
  QuestionÂ
The Âmajor industrial power whose economy
was not affected after the II world war was
________.
  CorrectUSA
Answer Â
  Your AnswerÂ
USA Â
Â
 True/False
  QuestionÂ
Sterling
 FRNs are issued in Europe, USA
,Asia
  CorrectFalse
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Single Answer
  QuestionÂ
Mr MÂ has imported some goods from Greece.
What is the maximum period within which he
must make the payment?
  CorrectSix
AnswerÂ
monthsÂfrom date of shipment
  Your AnswerÂ
Six months
 from date of bill of exchange
Â
 Multiple Choice Single Answer
  QuestionÂ
Under
 the automatic route of Direct
Investment Abroad, what is the restriction on
market purchases?
  Correct50%
AnswerÂ
of theÂnet worth of the investing
company
  Your AnswerÂ
50% of the
 net worth of the investing
company
Â
 Select The Blank
  QuestionÂ
For importing
 goods in India RBI insists on
________ value.
  CorrectCIF
Answer Â
  Your AnswerÂ
FOB Â
Â
 Multiple Choice Single Answer
  QuestionÂ
What
 is the objective of INCOTERMS?
  CorrectArrange
Answer forÂtransfer of risk from seller to
buyer at a convenient place
  Your AnswerÂ
ArrangeÂfor transfer of risk from seller to
buyer at a convenient place
Â
 Multiple Choice Single Answer
  QuestionÂ
Name the members of Exchange Banks
association :-
  CorrectForeign
AnswerÂBanks
 at Bombay, Calcutta, Delhi,
Madras, Amritsar,
  Your AnswerÂ
Foreign Â
Banks at Bombay, Calcutta, Delhi,
Madras, Amritsar,
Â
 True/False
  QuestionÂ
Yankee
 bond is issued for domestic
borrowers.
  CorrectFalse
Answer Â
  Your AnswerÂ
True Â
Â
 True/False
  QuestionÂ
In the
 forward rate quotations between two
currencies, when one currency is at discount
the other currency is at premium.
  CorrectTrue
Answer Â
  Your AnswerÂ
False Â
Â
 Select The Blank
  QuestionÂ
Fixed interest rate Eurobond without the
option to convert to equity is known as
________.
  CorrectStraight
Answer Debt
Â
  Your AnswerÂ
Straight ÂDebt
Â
 True/False
  QuestionÂ
Cause
 of increase in cost of public issues
Underwriting fees , selling commission
  CorrectTrue
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Single Answer
  QuestionÂ
In the
 syndicated loan arrangement the
borrower has to execute :-
  CorrectSingle
AnswerÂPrincipal
 loan agreement
  Your AnswerÂ
Single Principal
 loan agreement
Â
 Multiple Choice Multiple Answer
  QuestionÂ
What  criteria of lending is adopted by The
International Development agency while
giving loans to a country?
  CorrectThe
AnswerÂ
per capita
 income of the borrwoing
country , The population of the borrwoing
country
  Your AnswerÂ
The per Âcapita income of the borrwoing
country , The repayment capacity. , The
Security offerred.
Â
 Select The Blank
  QuestionÂ
As aÂresult of the world wars in the 20th
century the ________ of most of the
countries suffered heavily.
  CorrectEconomies
Answer Â
  Your AnswerÂ
Currencies
Â
Â
 Select The Blank
  QuestionÂ
Rupee
 was liberalised on ________ account
in 1993, and on current account in 1994.
  CorrectTrade
Answer Â
  Your AnswerÂ
Capital Â
Â
 True/False
  QuestionÂ
Integrated
 branches of Commercial banks
handle forex transactions as well as options,
swaps, futures, arbitrage operations
  CorrectTrue
Answer Â
  Your AnswerÂ
True Â
Â
 True/False
  QuestionÂ
Floating
 rate notes are traded in secondary
market also.
  CorrectTrue
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Single Answer
  QuestionÂ
What  maxim is followed by the forex dealer
when indirect method of exchange rate
quotation is used?
  CorrectBuy
AnswerÂ
Low, sell
 High
  Your AnswerÂ
Buy High, Sell Low
Â
 Select The Blank
  QuestionÂ
In ________
 Contract seller is like a domestic
seller in destination country
  CorrectDDP
Answer Â
  Your AnswerÂ
DDP Â
Â
 Select The Blank
  QuestionÂ
________Bill
 of lading must specify the name
of the ship.
  Correct"On
AnswerÂ
Board"Â
  Your AnswerÂ
"On Board"
Â
Â
 Select The Blank
  QuestionÂ
Indian
 Co. intending to make investment
under Automatic route needs to submit form
________ to RBI with enclosures.
  CorrectODA
Answer Â
  Your AnswerÂ
ODA Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
What  is a 'speculator'?
  CorrectTrader
Answer whoÂis neither hedger nor arbitragor ,
He takes risks for profit
  Your AnswerÂ
Trader who
 is neither hedger nor arbitragor ,
He takes risks for profit , He buys or sells to
hedge his risk
Â
 Multiple Choice Multiple Answer
  QuestionÂ
The Âcharacteristics of IDA Loan are:
  CorrectItAnswerÂ
gives loans
 to poorer countries , The rate of
interest is zero percent , The repayment
period is very long 40 years
  Your AnswerÂ
It gives loans
 to poorer countries , The rate of
interest is zero percent , The repayment
period is very long 40 years
Â
 True/False
  QuestionÂ
Head  office of ICC is in Paris because of its
First President Eliance Clementel.
  CorrectTrue
Answer Â
  Your AnswerÂ
True Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
What  does the word '"Tombstone" stand for?
  CorrectAdvertisement
Answer  which lists the managers,
underwriters, , List of Providers of recently
floated issue
  Your AnswerÂ
Advertisement
 which lists the managers,
underwriters, , List of Providers of recently
floated issue , Issue without planning, for
short duration
Â
 Multiple Choice Single Answer
  QuestionÂ
What  is Risk Syndication facility?
  CorrectSharing
Answer of Â
risk of non payment by supplier
  Your AnswerÂ
Sharing Âof risk of non payment by supplier
Â
 Multiple Choice Multiple Answer
  QuestionÂ
What  do you understand by 'Foreign
Exchange Risk'?
  CorrectThe
AnswerÂ
change  in value of currency alters the
home currency value of an asset , liability, ,
The change in value of currency alters the
home currency value of profit, loss, or future
cash flows
  Your AnswerÂ
The change
 in value of currency alters the
home currency value of an asset , liability, ,
The change in value of currency alters the
home currency value of profit, loss, or future
cash flows
Â
 Multiple Choice Multiple Answer
  QuestionÂ
The Âmaximum period for which a forward
contract can be granted by the AD depends
upon which RBI directives?
  CorrectMaximum
Answer Period
 of repatriation of export
proceeds , Maximum Period of payment for
Imports
  Your AnswerÂ
Maximum  Period of repatriation of export
proceeds , Maximum Period of payment for
Imports
Â
 Multiple Choice Multiple Answer
  QuestionÂ
A Forward
 purchase contract was booked
with an authorised dealer and subsequently
cancelled .It :-
  CorrectCan
AnswerÂ
be booked
 again with another dealer ,
Can be booked again with the same dealer
  Your AnswerÂ
Can be booked
 again with another dealer ,
Can be booked again with the same dealer ,
Can be booked only for un booked portion of
the contract.
Â
 True/False
  QuestionÂ
BothÂfutures and options are traded on a
public exchange.
  CorrectFalse
Answer Â
  Your AnswerÂ
False Â
Â
 Multiple Choice Multiple Answer
  QuestionÂ
The Âcharacteristics of an International
documentary credit are :-
  CorrectItAnswerÂ
is an undertaking
 given by the openers
bank to pay certain sum of money , It is an
undertaking given on behalf of a certain
person to another person in different country
  Your It is an undertaking given by the openers
Answer bank to pay certain sum of money , It is an
 undertaking given on behalf of a certain
person to another person in different country ,
It is an unconditional undertaking Â
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Correct Answer Price established by the clearing house at the end of each
trading session , It is used to determine the net gain, loss,
margin call and next days price limits
Your Answer Price established by the clearing house at the end of each
trading session , It is used to determine the net gain, loss,
margin call and next days price limits
True/False
Question The working of the IBRD and IMF in recent has blurred the
difference between the two
Correct Answer True
True/False
Question An exporter expecting payment in$ next month will book a
forward purchase contract.
Correct Answer False
Correct Answer It gives loans to poorer countries , The rate of interest is zero
percent , The repayment period is very long 40 years
Your Answer It gives loans to poorer countries , The rate of interest is zero
percent , The repayment period is very long 40 years
Correct Answer Viability of the proposal, and excellent track record of business ,
Experience and expertise of promoters, benefit to the country
Your Answer Viability of the proposal, and excellent track record of business ,
Experience and expertise of promoters, benefit to the country ,
Total Financial commitment in JV/WOS as per prescribed ceiling
True/False
Question Integrated branches of Commercial banks handle forex
transactions as well as options, swaps, futures, arbitrage
operations
Correct Answer True
True/False
Question Both futures and options are traded on a public exchange.
Correct Answer Which are convertible , Which have liquidity confirmed in Euro
market operations
Your Answer Which are convertible , Which have liquidity confirmed in Euro
market operations , Which have greater intrinsic value
True/False
Question JV means Joint venture and WOS means World of Security.
True/False
Question The American Dollar market comprises of the domestic segment
of USD the offshore segment of USD.
Correct Answer True
True/False
Question FRN's issued with ceiling on interest beyond which the issues is
not required to pay interest is known as Mini-Max FRN
Correct Answer True
Correct Answer Gilts offer higher attractive margin , Choice of issuing medium
term and long term bonds
Your Answer Gilts offer higher attractive margin , Choice of issuing medium
term and long term bonds , Linking of issues to currency swaps
True/False
Question At Least one principal Lender bank is essential for issue of the
ADR or GDR.
Correct Answer False
True/False
Question In an already booked forward contract, a person may seek early
delivery, extension in period, or cancellation.
Correct Answer True
True/False
Question Bid rate is bidders buying rate and offered rate is bidders selling
rate.
Correct Answer True
True/False
Question Corporates are allowed to raise funds abroad up to $ 15 million
as short term finance if they have EPCG license.
Correct Answer True
True/False
Question Out of 15 member countries in European Union 12 countries commiteed themselves
for a single currency.
Correct Answer False
Your Answer True
True/False
Question In red clause credit some clauses are printed in Red ink.
Correct Answer True
Your Answer True
True/False
Question Transfer of funds for investment abroad is allowed freely.
Correct Answer True
Your Answer False
True/False
Question An Indian importing goods from USA pays dollars in India.
Correct Answer False
Your Answer True
True/False
Question CFR = FOB plus freight paid by seller +insurance paid by seller.
Correct Answer False
Your Answer True
True/False
Question Integrated branches of Commercial banks handle forex transactions as well as
options, swaps, futures, arbitrage operations
Correct Answer True
Your Answer True
True/False
Question Normally the forward contracts are booked for making huge profits.
Correct Answer False
Your Answer False
True/False
Question Head office of ICC is in Paris because of its First President Eliance Clementel.
Correct Answer True
Your Answer False
True/False
Question Till August 1994 India was following the Indirect Methodof Rate quotation.
Correct Answer False
Your Answer False
Correct Answer He can book a sale contract any time from May 2005 till Mid Sept 2005, for
Euro 25000 or less, for maturity last week of Sept.
Your Answer He can book a contract for Forward Purchase, any time from May 2005 till Mid
Sept 2005, for Euro 25000 or less, for maturity last week of Sept.
Your Answer Payment to EOUs in India for services rendered by them , Payment of Gifts of
GBP 5000 per year per donor
True/False
Question PP Form is required when exports are made to any country by post parcel on value
payable basis.
Correct Answer False
Your Answer True
True/False
Question In developed markets, speculators play important role in
determining the trend of currency rates.
Correct Answer True
Your Answer True
True/False
Question Cash flows generated from aforeign project may replace revenue-
producing imports to the host country
Correct Answer False
Your Answer False
True/False
Question Cross currency forward contract is not meaningful if original
contract is in Rupees to USD
Correct Answer True
Your Answer True
True/False
Question Sterling FRNs are issued in Europe, USA ,Asia
Correct Answer False
Your Answer False
True/False
Question The working of the IBRD and IMF in recent has blurred the
difference between the two
Correct Answer True
Your Answer True
True/False
Question Multimodal transport document is also known as
"IntermobileTransport Document"
Correct Answer True
Your Answer True
True/False
Question A small percentage of futures contracts actually result in delivery
of the underlying commodity or security.
Correct Answer True
Your Answer False
True/False
Question The Option period in the forward contract is at the option of the
Banker, hence the bank has to be very conservative in quoting
rates.
Correct Answer False
Your Answer True
True/False
Question Services of a Paying bank are taken when currencies of exporters country
or the importers country is not involved in the transaction.
Correct Answer False
Your Answer House Airway bill , Postal Receipt , On board bill of exchange
Correct Answer The export receivables must be repatriated within six months of the date
of shipment.
Your Answer The export receivables must be repatriated within six months of the date
of shipment.
Correct Answer The issues are different, unique to each project, and solutions are varied
Your Answer The issues are different, unique to each project, and solutions are varied
True/False
Question An Indian importing goods from USA pays dollars in India.
Correct Answer False
Correct Answer Quotation of forex rates, interest rates , Electronic broking by matching the
rates
Your Answer Quotation of forex rates, interest rates , Electronic broking by matching the
rates , Calculate and quote rates for transactions
Correct Answer Interest rates are changing, Interest rates affect and are affected by
exchange rates
Your Answer Interest rates are changing, Interest rates affect and are affected by
exchange rates
Your Answer 26
True/False
Question Cash flows generated from aforeign project may replace revenue-
producing imports to the host country
Correct Answer False
Correct Answer Which are convertible , Which have liquidity confirmed in Euro market
operations
Your Answer Which are convertible , Which have liquidity confirmed in Euro market
operations , which have greater gold parity
True/False
Question Out of 15 member countries in European Union 12 countries commiteed
themselves for a single currency.
Correct Answer False
True/False
Question The American Dollar market comprises of the domestic segment of USD
the offshore segment of USD.
Correct Answer True
True/False
Question Tranche' is a managed issue of securities in smaller denominations.
True/False
Question Prior approval of RBI is needed for payment of all imports.
True/False
Question Cause of increase in cost of public issues Underwriting fees , selling
commission
Correct Answer True
Correct Answer Exemption is granted from the criteria of Core activity stipulation under
automatic route
Your Answer Exemption is granted from the criteria of Core activity stipulation under
automatic route
True/False
Question Bid rate is bidders buying rate and offered rate is bidders selling rate.
Correct Answer True
Your Answer 5
Correct Answer Floating rate notes, bonds, debentures , Syndicate loans, issue of shares
Your Answer Floating rate notes, bonds, debentures , Syndicate loans, issue of shares
Correct Answer Champion the global economy as a force of economic growth , Creating of
job and prosperity
Your Answer Champion the global economy as a force of economic growth , Creating of
job and prosperity
True/False
Question The volume of trading of Derivatives in the world trade market is growing
but still only 5% of the total.
Correct Answer False
Correct Answer Help private enterprise by financing projects , Provide technical assistance
to private enterprise
Your Answer Help private enterprise by financing projects , Provide technical assistance
to private enterprise , Help to maintain the exchange rate stability
Correct Answer The exercise or strike price, the amount , The expiration date and time,
the method of payment
Your Answer The exercise or strike price, the amount , The expiration date and time,
the method of payment , The Market report of the exchange which trades
the option
True/False
Question The control of enviromental aspect Life side analysis.
True/False
Question Enviroment indudes natural resources.
True/False
Question The main business process objective is to serve the customer in
excellent manner.
Correct Answer True
True/False
Question ISO - 9000 -2000 this revision of ISO is currently in use.
True/False
Question Prevention of pollution is prevention of cause of pollution.
True/False
Question Machine down time is waste.
Correct Answer The organisation which adopts it , Adjacent property owner &
enviroment
Your Answer The organisation which adopts it , Preservation of Nature
True/False
Question Leadership from top should be totally honest & transparent in
dealing .
Correct Answer True
True/False
Question By Applying basic principle, the process improvement will be in
organization's focuses on work process.
Correct Answer True
True/False
Question Significant aspect means Perceived Risk.
True/False
Question Enviromental impact is any change to the environment, whether
adverse or beneficial.
Correct Answer True
True
False
a)
Average of Reading
b)
Sum of Reading
c)
Mean of Reading
d) Mode of Reading
In ISO - 90001Quality policy declare by management. Similarly what is specified in ISO - 14001?
a)
Enviromrntal Policy
b)
Enviromentel plan
c)
Enviromentel objectives
d) Enviromental Regulations
a)
Participation
b) Tem work
c) Groupism
d) Individual Growth
Marks : 2
30.
The documents of external origin
The documents of
external origin :-
a)
Should be controlled
separately
b)
Should have
c) separate system
d) Require special
control
Should have
documented procedure
Continious improvement is improvement of inviromental
system.
True
False
True
False
Range is :-
a)
Difference of minimum & maximum
b)
Diff of highest & lowest
c)
Average of Reading
d) Sum of Reading
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question TQM & ISO both focuses on employee.
True/False
Question Histogram is used to compare data.
True/False
Question Quality is fitness for Purpose
True/False
Question Product quality planning should address capability & qualification
of equipment.
Correct Answer True
True/False
Question Quality policy is defined by employee of organisation
True/False
Question Periodic review of process to be taken to ensure consistency of
process.
Correct Answer True
Correct Answer Identify & organize possible causes of problem , Identify possible
causes of problem & determining its relation
Your Answer Identify possible causes of problem & determining its relation
True/False
Question The ISO is based on Plan - do - check- Act.
True/False
Question When process improvements are institutionlized, the process is
optimized level
Correct Answer False
Your Answer True
True/False
Question The European award uses the criteria of efficiency &
effectiveness.
Correct Answer True
True/False
Question Physical facilities is tangible dimension.
True/False
Question TQM approach is based on Participation.
Correct Answer True
Your Answer True
True/False
Question Histogram is used to compare data.
Correct Answer True
Your Answer True
Page 1
TQM-4
Multiple Choice Single Answer
Question In control chart, X bar means :-
Correct Answer Average of Reading
Your Answer Average of Reading
True/False
Question Quality policy is defined by employee of organisation
Correct Answer False
Your Answer False
True/False
Question The process mapping means sequence & interaction of
process.
Correct Answer True
Your Answer True
Page 2
TQM-4
Multiple Choice Multiple Answer
Question Ishikawa is the originator of :-
Correct Answer Fishbone Diagram , Cause effect Diagram
Your Answer Fishbone Diagram , Cause effect Diagram
Page 3
TQM-4
Multiple Choice Single Answer
Question Strategic quality management means :-
Correct Answer Strategic Improvement
Your Answer Strategic Improvement
True/False
Question Quality approach is potential failure prevention.
Correct Answer True
Your Answer True
True/False
Question Documents in company are controlled by Management
Representatives.
Correct Answer True
Your Answer True
Page 4
TQM-4
Multiple Choice Multiple Answer
Question The inviromental policy must :-
Correct Answer Be Relevant to the activity , Comply with
legislation , Commits to prevention of pollution
Your Answer Be Relevant to the activity , Comply with
legislation , Commits to prevention of pollution
True/False
Question Value is for which customer is paying.
Correct Answer True
Your Answer True
Page 5
TQM-4
Ishikawa development Cause & effect diagram Cause & effect diagram
True/False
Question The performance of process is in controlled condition
then it is called process at managed level.
Correct Answer False
Your Answer True
True/False
Question Failure mode & effect Analysis is prevention tool.
Correct Answer True
Your Answer True
Page 7