SCDL International Finance

International Finance
Match The Following

Question Correct Answer
Intolerable risk Drop the investment project
Country risk analysis Cost of evaluation oes not justify analysis
!tock market
analysis
"anks are ahea
#eightages $ Factors% values

Match The Following

Maturity of future Time when actual commoity is
elivere
&ote issuance facility 'uro notes
"earer security issue in currency other than that of the
country of issue
'urobons
Margin on future (erformance bon or security
eposit

Multiple Choice Multiple Answer
Question) '*port +finance
Correct Answer) (reshipment creit, (ost shipment creit, Duty Draw back

Multiple Choice !ingle Answer
Question) In a coupon swap who is calle the buyer-
Correct Answer) .ne who pays the fi*e rate of interest

Question) #hat are the powers of money changers-
Correct Answer) (urchase an sell foreign currency notes an travellers che/ues

Question) #hat are the features of !ettlement price-
Correct Answer) (rice establishe by the clearing house at the en of each traing session, It is
use to etermine the net gain, loss, margin call an ne*t ays price limits

Question) #hat are the activities of ICC-
Correct Answer) Aribtration an ispute resolving, Canvass for open trae combat commercial
crime

!elect The "lank
Question) The currency swaps use 000000001
Correct Answer) To lower the risk of currency e*posure

Question) #hich factors affect the e*change rates in short time perio-
Correct Answer) Deman an supply, interest rates, inflation, !entiment, !peculation

Question) #ho can issue the Certificate of Inspection-
Correct Answer) '*port Inspection Council, (erson authorise by Importer1

!elect The "lank
Question) In .verseas market the forwar rate is generally /uote on the basis of 000000001
Correct Answer) Fi*e ate

Question) Fi*e, Floating or 2imite fle*ibility are use in the conte*t of
Correct Answer) '*change 3ates

Question) &ame the common fore* erivatives)4
Correct Answer) .ptions, futures

Match The Following

Issues linke with 2I".3,2I"ID,2IM'A& F3&s
Issue of bons without fi*e rate of interest, linke to short term
interest rate in the global market
Floating3ate &ote
Issue of loans internationally,through arranger, unerwriter,co
manager, for a large amount for sharing risk of lening
!ynicate 2oans
'/uity issues in the foreign markets either as irect investments or
portfolio investments
American or 5lobal
Depository 3eceipts

Question) #hat is the meaning of a country risk-
Correct Answer) 3isk of events in a particular country which may cause loss to a person ealing
with that country

Match The Following

(( Form '*port Declaration form
6ealth Certificate Fumigation certificate
Certificate of Inspection As per importers re/uirement
Certifiate of .rigin '*port (romotion Council

Question) 6ow many I&C.T'3M! are there in 7Departure7 5roup-
Correct Answer) .ne

Question) #hat is a bill of laing-
Correct Answer) Transport ocument representing movement of goos by water1

Question) 6ow is the entry into any conuntry%s money market or capital market is restricte-
Correct Answer) "ecause of ifferent ta* systems, "ecause of ifferent creit stanars

True8False
Question) (rior approval of 3"I is neee for payment of all imports1
Correct Answer) False

Question) The factors which affect the performance of an option are)4
Correct Answer) 9nerlying asset price, Time before e*piration, rate of interest

Question) '*ternal Commercial Debt market)4
Correct Answer) (revails in Domestic market of foreign country, (revails in offshore markets

Question) #hat o you unerstan by %Foreign '*change 3isk%-

True8False
Question) In the orwar rate /uotations between two currencies, when one currency is at iscount
the other currency is at premium1
Correct Answer) True

!elect The "lank
Question) A "ill f e*change payable :; ays from ate of shipment, is a means of 00000000 from
seller to the buyer1
Correct Answer) Creit

True8False
Question) Import inance is nomally available at rates of interest cheaper than omestic finance
rates1

Question) Major nvestors in &IF are)4
Correct Answer) Commercial "anks, &on banking Finance companies, Insurance Companies

True8False
Question) Inian ompanies are now allowe to freely invest abroa up to <=1; million, raise
through 5D' or ''FC without prior permission from 3"I1

Question) #hich unctions oes the "ill of 2aing serve-
Correct Answer) It is a ocument of title to goos, It is receipt of goos

Question) #hat is !overeign 3isk-
Correct Answer) 3isk of lening to the governmentof a country

Question) 6ow oes ICC help poor countries-
Correct Answer) Attract Foreign Direct investments togeather with 9&CTAD

True8False
Question) &ormally the forwar contracts are booke for making huge profits1

Question) #ho can open an ''FC account-
Correct Answer) Iniviuals, firms, companies, resient in Inia

Question) #hat is the role of ICC towars #T.-
Correct Answer) To provie worl business recommenations to #T.

Match The Following

!wap price Difference in prices of two legs of buying an selling
'uro Market Market in 'uro currencies
Making market Quoting rate for both buying an sellinga currency
!prea (rice Difference between bi an offer

!elect The "lank
Question) The counter party in option is 000000001
Correct Answer) The e*change

!elect The "lank
Question) An e*change rate for < was :>1?@;@, it is now :>1?@A;, then one says that it has move
00000000 basis points
Correct Answer) ?;

Question) #hat o you unerstan by a swap-
Correct Answer) ? counter parties agree to e*change streams of payments over a perio of time

True8False
Question) 'C5C offers isurance protection to Inian e*porters againt payment risks1

!elect The "lank
Question) Balue +of 9!Dollar is 00000000 in the worl market but 3"I is trying to match the
3upee value with it1
Correct Answer) Depreciating

Question) "orrower from a eveloping country can borrow from 9! market
Correct Answer) .nly if it has high creit rating an the country%s 5ovt gives a guarantee for the
same1

Question) #hat +was the purpose of reviewing F'3A =CA+ in the year =CC+-
Correct Answer) 'conomic 2iberalisation relating to Foreign trae an Foreign investments

!elect The "lank
Question) 2egalise invoice is also calle 00000000 invoice1
Correct Answer) Bisae

Question) In Import financing through trust receipts, with whom oes the ownership of goos
remain-
Correct Answer) "ank releasing the import ocuments

Question) The integrate treasury branches of commercial banks hanle which type of business-
Correct Answer) Fore* transactions, Derivatives transactions, Mney market an bon market
transactions

Match The Following

2ast !tage Form a single currency
The First stage in the 'uropean an
Monetary 9nion D'M9E
Free movement of capital in 'C
!tage II in 'M9 'stablishment of 'uropean Monetary Institute
!tage III in 'M9 Members to meet the convergence criteria an fi*
the e*change rates

Question) #hat o you call a %ecreasing principal swap%-
Correct Answer) AmortiFing swap

Match The Following

Investment uner Automatic route Form .DA
(roposal uner non automatic route 3"I
(roposal uner &ormal route !pecial Committee
Investment by partnerships not in core
activity
Form .DI

Question) &ame the services provie by %3euter +@@@% in fore* market)4
Correct Answer) Quotation of fore* rates, interest rates, 'lectronic broking by matching the rates

Question) "efore abanoning the Fi*e e*change rate system, the Dollar gol parity was fi*e by
9!A at
Correct Answer) 9!D +; per .unce of gol

Question) A country nees e*ternal commercial borrowings to)4
Correct Answer) Meet the averse balance of payments position

Question) #ith whom can an e*porter or importer book the forwar contract-
Correct Answer) Authorise ealer8Authorise person

Question) #orl "ank gives loans for
Correct Answer) !tructural Ajustments, Infrastructure projects, ".( problems

Question) 6ow oes 'C5C protect e*porters against risks for e*port finance-
Correct Answer) Issuing various insurance policies covering ifferent risks connecte with
e*ports at nominal premium

True8False
Question) !terling F3&s are issue in 'urope, 9!A, Asia

Question) Transaction e*posures arises because of)4
Correct Answer) The cost of settlement of future payment changes, 3eceipt enominate in a
foreign currency varies ue to e*change rate fluctuation

Question) &ame the single most important factor which may evastate the economic viability of
an operation in international trae)4
Correct Answer) 9nfavourable fluctuation in the e*change rate

!elect The "lank
Question) In 00000000 Contract seller is like a omestic seller in estination country
Correct Answer) DD(

!elect The "lank
Question) For importing goos in Inia 3"I insists on 00000000 value1
Correct Answer) CIF

True8False
Question) In forwar sales, the elivery refers to actual cash flows on ue ate1

Question) #hich events can lea to materialisation of country risk-
Correct Answer) Change in 5overnment policies, Change in 5overnment rules an laws

Question) #hat is the primary concern of the buyer in the International Trae-
Correct Answer) To get the goos of the /uantity an /uality emane in the stipulate time

Question) #hose permission was necessary for forming the Association of Foreign '*change
Dealers, in Inia-
Correct Answer) 3eserve "ank of Inia

Question) A !pecific ate forwar contract can be booke so as to be)4
Correct Answer) (ayable on a specific ate of the calenar month

Question) #hich factors influence the valuation of cash flows-
Correct Answer) Incomplete capital market, Availability of projkect specific concessional finance,

Question) In a ocumentary creit the wor ocument means)4
Correct Answer) !pecifie ocuments of title, transportation, insurance, !pecifie certificates,
an other papers re/uire as per the regulations in the buyers country

Question) #hich of these are not consiere as goo securities by the banker-
Correct Answer) 6ouse Airway bill, (ostal 3eceipt

!elect The "lank
Question) 7Flip4Flop%, %Mini4Ma*%, %Cappe% %(erpetual% are the various types of 000000001
Correct Answer) Floating 3ate &ote DF3&E

True8False
Question) Terms in an Irrevocable creit can not be alterre at all1

!elect The "lank
Question) An option on a future is 000000001
Correct Answer) Derivative on a erivative

Question) 6ow oes 3"I control '*ports-
Correct Answer) Through 3ule like 7Full value of '*port bills must be realise in =>@ ays7,
Through 3ule like G'*port must be enominate In a currency of the Importing country or a
freely convertible currency7

Question) #hat is the statutory re/uirement about receivables of e*ports from Inia-
Correct Answer) The e*port receivables must be repatriate within si* months of the ate of
shipment1

Match The Following

Merchant banking (ortfolio management
!ecuritiFation Issue of ebt in the form of traeable security
(rime borrower 6ighest creit rating
Traitional banking service 2oans an cash creit against security

Question) The characteristics of IDA 2oan are)
Correct Answer) It gives loans to poorer countries, The rate of interest is Fero percent, The
repayment perio is very long :@ years

True8False
Question) In 9H in lonon Market the Inirect Quote Metho is still aopte1

!elect The "lank
Question) 00000000 is +rawn by taking mean of the bi an offere rates1
Correct Answer) Mile rate

Question) The crisis in global capital market in ?@@?4@: was ue to
Correct Answer) Collapse of 'nron, Collapse of Argentina%s currency boar, The war against
terrorism

!elect The "lank
Question) The option which can be e*ercise on the maturity ate an not before it is known
as000000001
Correct Answer) 'uropean .ption

True8False
Question) Floating rate notes are trae in seconary market also1

Question) #hat facilities are propose by !ohani Committee for &3Is-
Correct Answer) 6ousing 2oan to &3I staff of Inian Companies, &3Is be permitte to invest in
MMMF

Question) #hat is the effect of interweaving of national economies-
Correct Answer) 5ovt ecisions have stronger international repercussions

!elect The "lank
Question) For opening IB8#.! in &epal, "hutan, the ceiling for financial commitment per
annum is 0000000
Correct Answer) 3s1 +;@ crore

!elect The "lank
Question) (artnership firm not eligible for .verseas Direct Investment nees to apply to 3"I
Approval in form1
Correct Answer) .DI

Question) 6ow many types of ocuments are re/uire in the International trae-
Correct Answer) !i*

True8False
Question) Multimoal transport ocument is also known as 7IntermobileTransport Document7

True8False
Question) In a coupon swap the principal amount is ientical in the same currency1

Question) 9nerwriters are more attracte to &IF issue because of)4
Correct Answer) 2esser risks, Increase returns, 'asy marketability features

Question) The financial system of any country consists of
Correct Answer) &etwork of commercial banks, omestic an foreign investment banks, &"FCs,
etc

Question) #hat is the main purpose of a commercial invoice-
Correct Answer) To establish the contract of sale between the two parties1

Question) #hat was the reason for launching swap as an risk heging instrument-
Correct Answer) To avoi the effects of currency control impose in 9H

Question) The #orl "ank 5roup Consists of
Correct Answer) International Development Association, International finance Corporation,
Multinational Investment 5uarantee Agency

True8False
Question) 2ong in futures means a commitment to sell futures at a future ate1

!elect The "lank
Question) #hen creit is mae to available to aitional beneficiary wholly or partly it is calle
as 000000001
Correct Answer) Transferable creit

True8False
Question) In coupon swap the receiver is the one who receives fi*e rate of interest1

!elect The "lank
Question) After he secon worl war, International settlements were one through 000000001
Correct Answer) 5ol
Match The Following

'uropean option .n or after maturity
.ut of money 2oss
In The Money (rofit
American option "efore maturity

Question) As per article IB of IMF for fi*e e*change rates member countries agree to
Correct Answer) Change e*change rates only for correcting funamental ise/uilibrium in
e*ternal payments with IMF approval

Question) 6ow +is the e*porter pai through %import loan%-
Correct Answer) The "ank elivers goos to the importer against his %trustee% receipt, e*porter
sells the goos an then pays for the same
Question) In case of forwar cover for repayment of foreign currency loan e*tening over a
perio of more than si* months which type of contract is booke-
Correct Answer) Forwar sales contract on roll over basis

Question) #hich causes may force a country to restrict imports or restrict transfer of payments-
Correct Answer) 'conomic ifficulties, "alance of payment problems such as non availability of
e*change reserves

!elect The "lank
Question) The large flow of money internationally was cause primarily by the oil price hikes
engineere by01
Correct Answer) .('C countries

Question) #here oes the wor erivative originate from-
Correct Answer) Mathematics

!elect The "lank
Question) The international li/uiity problem was tackle effectively by a reserve asset known as
000000001
Correct Answer) !pecial rawing right

Question) #hen was the first currency swap introuce in worl market-
Correct Answer) =CA@

Question) &ame the members of '*change "anks association)4
Correct Answer) Foreign "anks at "ombay, Calcutta, Delhi, Maras, Amritsar,

Question) The investor is in the money when)4
Correct Answer) The e*ercise price is below the spot price for a call option, The e*ercise price is
above the spot price for a put option

Match The Following

"on basis to money market basis "on basis* +J@8+J;
+ months 2I".3 K? $ (A Floating rate
=;$ (1A1 Fi*e rate
Money market basis to bon basis Money market basis * +J;8+J@

Question) #hat is the objective of F'DAI-
Correct Answer) 2aying own terms an conitions of e*change business between Customers
an "ankers, Interbank unerstaning for transacting fore* business an e*change rates

!elect The "lank
Question)1
Correct Answer) 2egalise

Question) #hat are the main causes of fluctuations in '*change rates-
Correct Answer) 5overnment regulations, fiscal policies, political instabilities, Market eman
an supply, sentiments

True8False
Question) The creit rating of #orl "ank is high in the worl Capital market because it operates
at the ebt e/uity ratio of =)?

Question) Criteria for Direct investment abroa uner normal route)4
Correct Answer) Biability of the proposal, an e*cellent track recor of business, '*perience an
e*pertise of promoters, benefit to the country

True8False
Question) .ut of =; member countries in 'uropean 9nion =? countries committe themselves for
a single currency1

Question) The major cost components of &IF are)4
Correct Answer) 9nerwriters fees, Margins of notes

Multiple Choice !ingle Answers
Question) #hich invoice is rawn in specific form to be supplie by the consular office of the
importer%s country, for treatment of preferential tariff rates-
Correct Answer) Customs invoice

True8False
Question) The amount in ''FC account can be eposite in FC&3 account to get interest1

Question) 9ner whose aministration oes 'C5C work-
Correct Answer) Ministry of Commerce

Question) #hat is a %speculator%-
Correct Answer) Traer who is neither heger nor arbitragor, 6e takes risks for profit

Question) #hy oes a person nee protection from unfavorable movement of e*change rate-
Correct Answer) 9nfavorable fluctuations in e*change rate can wipe out the normal business
profit

Question) #hich general risks are covere by any insurance policy for transit-
Correct Answer) Theft, loss, Damage, sea perils, non elivery

!elect The "lank
Question) .ver the yearLs 00000000has been the most wiely accepte currency in international
capital market1
Correct Answer) American Dollar

Match The Following

Cancellation of contracts above 9!D ;@@@@@ 'CD
forwar (urchase contract currency at
premium
(resume earliest elivery
forwar purchase contract currency at iscount (resume latest elivery
e*change margins F'DAI

Question) #ho introuce the worlLs first e*change trae currency futures-
Correct Answer) Chicago Mercantile '*change

Question) "ill for collection system is not secure system for)4
Correct Answer) The seller

True8False
Question) 3esient Iniviuals in Inia can ac/uire foreign bonus shares on the foreign securities
alreay hel by them without prior approval of 3"I

True8False
Question) "oth futures an options are trae on a public e*change1

Question) #hat was the collective assessment of International financial market about the country
risk of many countries in the last ecae-
Correct Answer) #hatever it was, was isastrously wrong1

Question) #ho acts as the trustee in case of import loan through trust receipt-
Correct Answer) Importer

True8False
Question) AD3 2evel I, is the final step to enter 9! e/uity market1

!elect The "lank
Question) 'ven after liberalisation of e*change controls, the 'uro sterling market remaine
volatile because of uncertainties in 9H an gyrations of sterling against major 0000000 countries
Correct Answer) .'CD

Question) #hat is the cause of Bolatility in the e*change market-
Correct Answer) Interest rates are changing, Interest rates affect an are affecte by e*change
rates

Question) The severemost problem face by the Fi*e e*change rate system was
Correct Answer) Inability of 9! to change gol for ollars

Question) If Investment is out of ''FC accounts then)4
Correct Answer) '*emption is grante from the criteria of Core activity stipulation uner
automatic route

!elect The "lank
Question) Inia is a founer member of 000000001
Correct Answer) IMF

Question) #ith reference to 'C", fun raising activity inclues)4
Correct Answer) Floating rate notes, bons, ebentures, !ynicate loans, issue of shares

Question) #hat criteria of lening is aopte by The International Development agency while
giving loans to a country-
Correct Answer) The per capita income of the borrwoing country, The population of the
borrwoing country

Question) #hich authorities re/uire the ocuments of International trae-
Correct Answer) Customs, '*cise, "ank

Question) Baluation of shares not liste on !tock e*change of a foreign Co is mae by)4
Correct Answer) Investment "anker

True8False
Question) Mankee bon is issue for omestic borrowers1

True8False
Question) AD3 2evel I, is the final step to enter 9! er/uity market1

Question) Balue ate means the ate on which)4
Correct Answer) Delivery of both the currencies will be mae

Question) #ho books an option forwar contract-
Correct Answer) (arty who is not efinite about crystallisation of elivery ate

Question) The regulations uner F'MA are containe in which manual-
Correct Answer) '*change control Manual

Question) In how many groups are I&C.T'3M! classifie-
Correct Answer) Four

Question) !amurai bons are
Correct Answer) Foreign yen bons issue to non resient entities in Iapanese Market

Question) The First country to get out of 5ol !tanar was
Correct Answer) 9H

Question) 00000000 of Inia has grante line of creit to African countries for financing e*port of
Capital goos1
Correct Answer) 'NIM "ank

Question) 3upee was liberaliFe on 00000000 account in =CC+ an on current account in =CC:1
Correct Answer) Trae

Question) A bill of e*change issue by a bank which pays specifie sum of money to the holer
on a specific ate is calle)4
Correct Answer) "ankers% Acceptance "on

Question) Mr1 A sells an option conferring the right to buy a kilogram of silver at 3s >@@@84 for
ne*t si* months means)4
Correct Answer) The buyer of option can buy silver from Mr1 A at >@@@84 per Hg, in ne*t J
months, even if the price goes up, The buyer of option can sell silver to Mr1 A at >@@@84 per Hg, in
ne*t J months, even if the price goes own1

True8False
Question) (roposal for Investment abroa by Inian not falling uner automatic route is
submitte to '*change Control Department of 3"I1

!elect The "lank
Question) Fi*e interest rate 'urobon without the option to convert to e/uity is known as 00001
Correct Answer) !traight Debt

!elect The "lank
Question) The type of trae where a country sells orange juice in return for cars is known as 001
Correct Answer) Counter Trae

!elect The "lank
Question) During the fi*e rate e*change system prevailing in Inia, the intervention currency
was 00001
Correct Answer) !terling (oun

Question) #hat are the categories of e*posures, a person faces in International trae-
Correct Answer) Transaction e*posure, Translation e*posure

Question) The participants in the Fore* Markets are)4
Correct Answer) &on banking entities wishing to e*change currencies, "anks an their clients,
!peculators, arbitragers

Question) 'uropean currency 9nit
Correct Answer) "asket of Currencies of members of 'M!

!elect The "lank
Question) Inian Co1 intening to make investment uner Automatic route nees to submit form
0000000 to 3"I with enclosures1
Correct Answer) .DA

Question) In DAF, the frontier means)4
Correct Answer) Frontier of e*porter%s country, Frontier of importer%s country

!elect The "lank
Question) (rofitability of a project in China to an Inian may be enhance by 000000001
Correct Answer) Concessionary finance available in China

Question) #ho issues guielines for Direct Investments abroa by any Inian-
Correct Answer) '*change Control Department of 3"I

Question) '*change 3ate means
Correct Answer) Balue of one currency in terms of another

Match The Following

3eturning &3I 3FC
&3I Deposits FC&3, &3'
&3I! A&D .C"! I&B'!TM'&T I& MMMF
'N(.3T'3! ''FC

!elect The "lank
Question) #hen a creit is mae to available to aitional beneficiary wholly or partly it is calle
as01

True8False
Question) Funing .ptions in omestic yen market are Futures, F3As, an Call an put options1

True8False
Question) 'C5C offers insurance protection to Inian e*porters against payment risks1

!elect The "lank
annum is 01

Question) #ho arranges for Insurance an transportation uner 'N# contract-
Correct Answer) "uyer arranges an pays

Question) #hich non financial service oes 'NIM "ank give to an e*porter-
Correct Answer) (rovie Technical an aministrative support, planning, promoting an
eveloping e*port oriente Inustries

!elect The "lank
Question) Mostly, countries in the Mile east re/uire 00000000 invoice, for facilitating import
uties

Question) #hy i 5ovt of Inia initially e*ercise controls on foreign receipts an payments-
Correct Answer) Conserve an mobilise foreign e*change for war effort

Question) 6ow many terms are there uner the class 7 main carriage unpai7-
Correct Answer) Three

True8False
Question) Cash flows generate from aforeign project may replace revenue4proucing imports to
the host country

Match The Following

Treasury management (rofit making
Arbitraging 3ate isparity
Futures, .ptions 6eging instruments
'*change 3ate
volatility
!peculation

!elect The "lank
Question) '93.C2'A3, C'D'2 are the names of 00000000 relate with the issue of 5D31
Correct Answer) 3egistrars

Question) In case of International trae, the role of a banker in case of a bill for collection is that
of)4
Correct Answer) 3outing the ocuments of transport along with other ocuments an apply the
procees as per instructions

!elect The "lank
Question) The international li/uiity problem was tackle effectively by a reserve asset known as
01
Correct Answer) !pecial rawing right

Question) #hich type of Convertibility of 3upee launche in March =CC?-
Correct Answer) 2imite convertibility

!elect The "lank
Question) The 00000000is a Floating rate ine* for swaps1
Correct Answer) 9! Commercial paper rate

Question) #hat is 2I".3-
Correct Answer) 3ate of interest for inter bank lening of funs for various maturities

Question) Mr M has importe some goos from 5reece1 #hat is the ma*imum perio within
which he must make the payment-
Correct Answer) !i* months from ate of shipment

!elect The "lank
Question) The price at which a person may purchase or sell the unerlying 000000001
Correct Answer) '*ercise or strike price

Question) #hat is a 73eceive for shipment7 bill of laing-
Correct Answer) It is not consiere by the banks as a goo security for financing1

Question) #hat is the primary concern of the seller in the International Trae-
Correct Answer) To be sure to get the payment for goos, in time an in the re/uire currency1

Question) #hich contracts are use for transportation by roa-
Correct Answer) FCA, C(T

Question) #hat is the objective of I&C.T'3M!-
Correct Answer) Arrange for transfer of risk from seller to buyer at a convenient place

Question) #hat is the uty of the AD while booking a forwar contract-
Correct Answer) Berify the suitable ocumentary evience, an that the customer is e*pose to
risk, 'nsure that a genuine transaction e*ists

Question) #hy oes a Transaction e*posure arise-
Correct Answer) Traing flows, Divien or capital flows

Match The Following

Issuing "ank .pening "ank
!tan "y Creit "ank guarantee
2etter of creit Documentary creit
"ill of
e*change
9sance

Question) 6ow oes 'C5C protect banker%s against risks for e*port finance-
Correct Answer) Issuing various guarantees covering ifferent risks connecte with e*ports at
nominal premium

Question) #hat is the meaning of right to buy or sell the future contract-
Correct Answer) An .ption

True8False
Question) .pen Insurance policy is for any amount for specific perio an specific number of
shipments1

!elect The "lank
Question) QA re/uest for aitional 00000000 funs from a customer in a margin call1
Correct Answer) Margin

Question) #hat ma*im is followe by the fore* ealer when irect metho of e*change rate
/uotation is use-
Correct Answer) "uy 6igh, !ell 2ow

!elect The "lank
Question) The right without the obligation to sell a security is 000000001
Correct Answer) (ut .ption

Question) #hy have futures an options come into e*istence-
Correct Answer) To avoi business risk1

Question) #hich ocument is use for transportation by air, rail, roa, marine-
Correct Answer) Multimoal transport ocument, Combine Transport ocument

Match The Following

I"3D #orl "ank
Collapse of IMF aministere fi*e e*change
rates
'arly =CA@s
&o International control on '*change rates Mi >@s
'uro as a currency note8coin ?@@?

Question) &ame the metho of payment where the seller neither gets the guarantee of payment
from the bank, nor the possibility of negotiation of ocuments)4
Correct Answer) "ills for Collection

!elect The "lank
Question) In Inian interbank market forwar rates are generally /uote on the basis of 0001
Correct Answer) Calenar month

Question) #hat o you unerstan by %bill of laing in a /uasi negotiable instrument%-
Correct Answer) It is a ocument of title to goos an its negotiation may not be complete an
free from /ualification1

Question) #hat are the functions of International Finance Corporation-
Correct Answer) 6elp private enterprise by financing projects, (rovie technical assistance to
private enterprise

Question) #hat are the powers of restricte money changers-
Correct Answer) (urchase foreign currencies

Question) #hich is the largest financial market in the worl-
Correct Answer) 9! Financial market

True8False
Question) "i rate is biers buying rate an offere rate is biers selling rate1

Question) In case of shortfall in the participation by leners, in the pre4ecie 7synicate 2oan
amount, such portion is taken up by)4
Correct Answer) The lea Manager

Question) #hat is a coupon swap-
Correct Answer) !wap contract e*change of fi*e rate payment system for a floating rate system
contract e*change of fi*e rate payment system for a floating rate system

Question) 7Currency !nake7
Correct Answer) (lus or minus movement of e*change rate aroun the parity rate

Question) The various arms of #orl "ank are)
Correct Answer) International Development Agency, Multinational Investment 5uarantee Agency

Match The Following

=J principles for goo environmental conuct "usiness Charter of sustainable evelopment
#orl Chambers Congress #orl Feeration of Chambers
ICC Conference in ?@@: Marrakesh
=+ types of trae contracts I&C.T'3M

!elect The "lank
Question) Combine Certificate of .rigin an Balue are re/uire by 000000001
Correct Answer) Commonwealth Countries

!elect The "lank
Question) 00000000"ill of laing must specify the name of the ship1
Correct Answer) 7.n "oar7

Match The Following

forfaiting Discounting e*port receivables
"uyer%s
Creit
Available to "uyer abroa
!eller%s Creit Available to seller abroa
9sance 2C !eller pai only on maturity ate

Question) #hat o you mean by a erivative-
Correct Answer) .ne which has been erive from other funamental instruments

Question) !amuraibons are
Correct Answer) Foreign yen bons issue to non resient entities in Iapanese Market

Question) Barious e*change rate mechanisms are basically use for
Correct Answer) Correcting currency ise/uilibrium

Question) In International trae, Avance payment means)4
Correct Answer) (roviing up front cash

Question) #hat ma*im is followe by the fore* ealer when inirect metho of e*change rate
/uotation is use-
Correct Answer) "uy 2ow, sell 6igh

Question) #hich invoice gives accurate recor of the type of merchanise shippe for the
purpose of fi*ing uties in the country of importer-
Correct Answer) Consular Invoice

Question) #ho introuce the worls first e*change trae currency futures-
Correct Answer) Chicago Mercantile '*change

Question) #hat is the ifference in a future an a forwar contract-
Correct Answer) Futures are traeable on public e*change, forwars are not are traeable on
stock e*change

Question) In whose name is the straight bill of laing issue-
Correct Answer) The Consignee

Question) 6ow oes 'C5C promote e*port in Inia-
Correct Answer) "y covering risk of e*porting on creit

Question) Documents which satisfy the statutory re/uirements of any trae an regulatory
aurhotiry are known as)4
Correct Answer) 3egulatory Documents

Question) (roforma Invoice, Commercial Invoice, Consaular Invoice are which type of
ocuments-
Correct Answer) Commercial Documents

True8False
Question) (hytosanitary8 3aiation8Fumigation certificates are in the category of 6ealth
Certificates

Question) #hat o firms face while evaluating risks in cross borer investment-
Correct Answer) The issues are ifferent, uni/ue to each project, an solutions are varie

Question) #hich functions oes the "ill of 2aing serve-
Correct Answer) It is a ocument of title to goos, It is receipt of goos

True8False
Question) In re clause creit some clauses are printe in 3e ink1

!elect The "lank
Question) ''FC account holer is allowe to have 00000000 facility1
Correct Answer) Che/ue book an nomination car, safe custoy, safe eposit locker without any
fee

True8False
Question) An Inian importing goos from 9!A pays ollars in Inia1

Question) The characteristics of an International ocumentary creit are)4
Correct Answer) It is an unertaking given by the openers bank to pay certain sum of money, It is
an unertaking given on behalf of a certain person to another person in ifferent country

True8False
Question) CF3 O F." plus freight pai by seller K insurance pai by seller1

Question) #hich of them are special funing facilities of IMF-
Correct Answer) "uffer !tock Facility

Question) #hat are the sources of raising funs for e*ports-
Correct Answer) !uppliers creit, Forfaiting

Question) #hat is the volume of the worl%s total speculative transactions-
Correct Answer) 3oughly C@ $ of the total turnover

!elect The "lank
Question) In 9! Capital Market a Company prepares all the necessary ocuments in avance of
the public issue uner the facility known as 000000001
Correct Answer) !helf 3egistration

Question) #hich ebits are permitte to ''FC accounts-
Correct Answer) (ayment of hotel bills abroa, (ayment for e*penses on 6eart operation abroa,
(ayment to '.9s in Inia for services renere by them

Question) !terling Market is attractive for an international investor because
Correct Answer) 5ilts offer higher attractive margin, Choice of issuing meium term an long
term bons

Question) 9ner which contracts the seller pays the import uty for the buyer-
Correct Answer) DD(

!elect The "lank
Question) (osition in a currency is sai to be 00000000, when sales e/ual purchases1
Correct Answer) !/uare

Question) #hy is "ill of '*change a Quasi &egotiable Instrument-
Correct Answer) It represents title to goos, It is issue uner !ale of 5oos act

Question) #hat o you unerstan by Commercial 3isk-
Correct Answer) (rotracte efault by the buyer, Insolvency of the buyer

Question) #ho are the members of the !pecial committee on Inian Direct Investments abroa,
for normal route-
Correct Answer) 3epresentatives of Ministry of finance, Ministry of 'conomic affairs, Ministry
of Commerce an 3"I

Question) In which currency can the ''FC account be opene-
Correct Answer) Any Convertible currency

Match The Following

&etherlan
s
5uiler
5ermany Mark
Irelan (unt
2u*emberg Franc

True8False
Question) A small percentage of futures contracts actually result in elivery of the unerlying
commoity or security1

Question) #hat o you unerstan by a fore* option-
Correct Answer) 3ight an not the obligation to take or give future elivery of an agree /uantity
at certain price

Match The Following

2ash bill of laing Acknowlegement by ship owners or agents
Through "ill of laing For entire voyage by several moes
!traight "ill of 2aing Issue in the name of the consignee
.n "oar bill of laing &ame of vessel

Question) #hen is intermeiation resorte to-
Correct Answer) #hen The 2ener oes not know or trust the creitwothiness of the borrower

Question) #hich controls are not permitte by IMF-
Correct Answer) Current account controls

True8False
Question) Cross currency forwar contract is not meaningful if original contract is in 3upees to
9!D

Question) #hat oes a speculator accept while ealing with an option-
Correct Answer) The e*ercise or strike price, the amount, The e*piration ate an time, the
metho of payment

Question) #hich is the most actively trae currency in the international market toay-
Correct Answer) 9! Dollar

!elect The "lank
Question) 5lobal capital market can be unerstoo from the stuy of 000000001
Correct Answer) Men,'uro Dollar, !wiss Francs, 9!D market, 5ovt "orrowings within an
outsie the country

Question) #hat are margins, with reference to futures market-
Correct Answer) Faith money eposite by buyers an sellers ensures li/uiity, margin ensures
solvency for honouring contracts

Question) #hat is the volume of the worl%s average aily transactions in foreign e*change-
Correct Answer) 9!D = trillion

Question) &IF is basically an agreement)4
Correct Answer) "y unerwriting bank to support funing for a certain perio, against which
borrowers can issue short term papers

Question) #hich currency is trae in one leg of about A@$ of the worl%s transactions-
Correct Answer) 9! Dollar

Question) #hat is 3isk !ynication facility-
Correct Answer) !haring of risk of non payment by supplier

True8False
Question) If '3D P I3D hen e*porter shoul availa 3upee finance

True8False
Question) There is no ifference between CI( an CIF contracts e*cept the moe of
transportation1

Question) (unjab &ational "ank Mumbai "ranch /uote 9!D =O 3s ;@1;@@@8;?1;@;@1 #hich is
the offere rate for 3s-
Correct Answer) 9!D =O3s ;@1;@@@

Question) '*amples of hege are)
Correct Answer) "uy when you are having short position

True8False
Question) Till August =CC: Inia was following the Inirect Metho of 3ate /uotation1

!elect The "lank
Question) A "ill of e*change payable :; ays from ate of shipment, is a means of 00000000
from seller to the buyer1
Correct Answer) Creit

Question) Major s in &IF are)4
Correct Answer) Commercial "anks, &on banking Finance companies, Insurance companies

!elect The "lank
Question) The +rate of interest on rupee finance for e*ports is not e*ceeing 00000000 less than
(231
Correct Answer) @1@?;
Question) 9ner the automatic route of Direct Investment Abroa, what is the restriction on
market purchases-
Correct Answer) ;@$ of the net worth of the investing company

Match The Following

Departure 'N#
Main carriage pai CF3
Main carriage unpai FA!
Arrival D'!

Question) Criteria for investment abroa uner automatic route)4
Correct Answer) Activity for investment is core activity of Inian Company1, Total Financial
commitment in IB8#.! as per prescribe ceiling

Question) These are the parties to the ocumentary creit)4
Correct Answer) &egotiating "ank, avising bank, 3eimbursing bank, Confirming bank

!elect The "lank
Question) 9ner +the 00000000 stanar the Country%s Central "ank promise to buy back the
currency at certain rate of 5ol1
Correct Answer) 5ol

Question) Metho of avance payment is not isavantageous to)4
Correct Answer) The seller

!elect The "lank
Question) 00000000 enables bankers to e*ten purchase, negotiation or iscount of e*port bills1
Correct Answer) (ost shipment creit guarantee

Question) In case of synication of loans the amount of loan an currency is finalise by)4
Correct Answer) "orrower

Question) #hich Inian Co1 is not eligible to make investment abroa uner automatic route-
Correct Answer) Co which is caution liste by 3"I

Question) A "ank /uotes interest rate of C1;@8=@1@@for si* months ollar eposit, here the bi rate
is)4
Correct Answer) C1;@$ (1A1

Question) As per "I!, recovery from the recent crisis in global capital market was mainly ue to
Correct Answer) 3api an appropriate policy response in 9! an other countries, Increase in
foreign Direct Investments, free flow of creit

!elect The "lank
Question) Fi*e interest rate 'urobon without the option to convert to e/uity is known as
000000001
Correct Answer) !traight Debt

!elect The "lank
Question) 'ven after liberaliFation of e*change controls, the 'uro sterling market remaine
volatile because of uncertainties in 9H an gyrations of sterling against major 00000000
countries

True8False
Question) 6ea office of ICC is in (aris because of its First (resient 'liance Clementel1

!elect The "lank
Question) A 00000000 "ill of laing oes not specify the terms an conitions of carriage1
Correct Answer) !hort Form

Question) Mr ( has e*porte goos in May ?@@; an is e*pecting payment of 'uro ?;@@@ by the
last week of !ept ?@@;1 5ive etails of the forwar contract he can book)4
Correct Answer) 6e can book a sale contract any time from May ?@@; till Mi !ept ?@@;, for
'uro ?;@@@ or less, for maturity last week of !ept1

!elect The "lank
Question) 6otels an Airline companies are allowe to receive payments in Inian rupees from
foreign tourist without insisiting on 000000001
Correct Answer) 'ncashment certificate

Question) (unjab &ational "ank Mumbai "ranch /uote 9!D =O 3s ;@1;@@@8;?1;@;@1 #hich is
the bi rate for 9!D-
Correct Answer) 9!D =O3s ;@1;@@@

Question) To whom is an AD re/uire to report the cancellation of forwar Contracts-
Correct Answer) &o one at all1

True8False
Question) An e*porter e*pecting payment in< ne*t month will book a forwar (urchase contract1

!elect The "lank
Question) The creit which oes not constitute a legally bining unertaking between the bank
an the beneficiary is 000000001
Correct Answer) 3evocable Creit

Question) A 3un on gol gol by a country means
Correct Answer) '*change of reserve currency in to gol

True8False
Question) CF3 O F." plus freight pai by seller Kinsurance pai by seller1

Question) At the re/uest of M8s 9niversal Traers Calcutta, !tate "ank of Inia opene a
ocumentary creit in Favour of M8s !tar Traing Co Dubai, for 9!D ?;@@@8416ere !tate "ank of
Inia Calcutta is known as
Correct Answer) Issuing "ank, .pening "ank

Question) #hich metho of payment is getting popular in 'urope because of high costs in other
methos-
Correct Answer) "ills for collection

True8False
Question) Dealing room is a place where the actual e*change of currencies takes place phsically
at preetermine rates1

Question) 9ner which metho of payments is the buyer not re/uire to pay till he gets the
possession of the ocuments-
Correct Answer) Documents against payment terms specifie in the bill of e*change

Question) The ma*imum perio for which a forwar contract can be grante by the AD epens
upon which 3"I irectives-
Correct Answer) Ma*imum (erio of repatriation of e*port procees, Ma*imum perio of
payment for Imports

Question) 3evolving unerwriting facility, short term note issuance facilty, transferabla revolving
unertaking facility are the names of)4
Correct Answer) &ote issuance facility

True8False
Question) In a coupon swap the receiver is the one who receives fi*e rate of interest1

Question) A Dealer "uys commoity in "ombay an sells it in Delhi ue to price ifferentials1 6e
is sai to be resorting to which practice-
Correct Answer) Arbitrage

Question) &ame the services provie by %3euter +@@@L in fore* market)4
Correct Answer) Quotation of fore* rates, interest rates, 'lectronic broking by matching the rates

Question) 7A bill of e*change is rawn payable after C@ ays after sight7, then it will be
consiere as)4
Correct Answer) 9sance "ill

!elect The "lank
Question) Mostly, countries in the Mile east re/uire 00000000 invoice, for facilitating import
uties1

!elect The "lank
Question) #hen a creit is mae to available to aitional beneficiary wholly or partly it is calle
as 000000001

Question) In case of shortfall in the participation by leners, in the pre4ecie Gsynicate 2oan
amount, such portion is taken up by)4
Correct Answer) The lea Manager

!elect The "lank
annum is 000000001

True8False
Question) The 'uro Commercial paper is supporte by a team4synicate creit with both sies
of the transaction combine into one operation1

Question) Mr A an Inian e*porter is e*pecting to receive payment for e*ports in 6ong kong
ollar, after one monthQ 6ow can he cover the e*change rate fluctuation risk-
Correct Answer) "y booking a A forwar contract in 6HD itself, "y booking a cross currency
option between 9!D an 6HD an 8 or 9!D an 3s

True8False
Question) Multimoal transport ocument is also known as 7IntermobileTransport DocumentR

!elect The "lank
Question) The stock of foreign reserves in Inia, is now aroun 00000000 $ of the 5D( an
e*cees money circulation1
Correct Answer) =;

True8False
Question) (roposal for Investment abroa by Inian not falling uner automatic route are
submitte to '*change Control Department of 3"I1

!elect The "lank
Question) In 00000000 contract, though seller pays the freight, seller%s risk is not e*tene till
estination1
Correct Answer) CIF

Question) 6ow i the 5ovt of Inia put the war time e*change controls in to a statutory frame
work-
Correct Answer) 'nacting F'3A =C:A

!elect The "lank
Question) The creitworthiness of futures e*change is maintaine through imposition of
000000001
Correct Answer) Margin

Question) For cancellation of an alreay booke forwar contract, whose permission is re/uire
by the customer-
Correct Answer) &oboy other than he himself

Question) #hich type of finance is available for the full value of the asset, in international trae-
Correct Answer) International 2easing

True8False
Question) "rige 2oans are grante for construction of large siFe briges, an flyovers1

True8False
Question) An Inian party which has mae irect investment abroa has to submit a annual
performance report in form A3(4= to 3"I1

!elect The "lank
Question) Balue of 9!Dollar is 00000000 in the worl market but 3"I is trying to match the
3upee value with it1
Correct Answer) Depreciating

Question) As regars the ue ate of an .ption e*ercise which methos are in vogue-
Correct Answer) American option, 'uropean .ption

True8False
Question) Cash flows generate from aforeign project may replace revenueproucing imports to
the host country

Question) The ocument formulate by the borrower of synicate loan, an the arranger, which
contains etails of iniviual shares etc of co4leners is known as)4
Correct Answer) Memoranum of information

Question) For a spot transaction carrie out on Thursay, currencies will be e*change on)4
Correct Answer) Monay

Question) The Direct Investment abroa through share swap arrangement uner normal route is
permitte in a)4
Correct Answer) IB8#.!

Question) In case the value ate happens to be a holiay then the settlement is one)4
Correct Answer) .n the ne*t working ay

Question) In which of the funing facilities the repayment perio is between + to ; years-
Correct Answer) C1C1F1F1

Question) #hat are the functions of '*port Import "ank of Inia-
Correct Answer) Finance functions an evelopment functions

Question) #hat schemes have been floate by 3"I for facilitating Inter bank transactions-
Correct Answer) Clearing house for settlement an clearance for the operations of As, !et up a
market intelligence cell to stuy an monitor evelopments in Fore* Market

!elect The "lank
Question) 00000000 is the agency of ICC which eals with the maritime crime1
Correct Answer) International Maritime "ureau

True8False
Question) (ostal receipt is an acknowlegement of receipt of goos, a /uasi negotiable
instrument1

Question) #hat (reshipment facility is grante by 'NIM "ank to an e*porter-
Correct Answer) (reshipment creit beyon si* months for construction an turnkey projects
abroa

!elect The "lank
Question) 00000000 is the aci test for events to be inclue in country risk1
Correct Answer) Control by 5overnment%

True8False
Question) Funing .ptions in omestic yen market are Futures, F3As, Call an put options1

Question) Financial management is comple* process for
Correct Answer) Companies which have international trae

!elect The "lank
Question) A Creit can be a confirme creit only if it is also 000000001
Correct Answer) An Irrevocable creit

Question) Internationally only those currencies are in eman
Correct Answer) #hich are convertible, #hich have li/uiity confirme in 'uro market
operations

Question) #hat are the functions of Asian Development "ank-
Correct Answer) 5ive !oftloans to poorer countries in Asia, 5ive project finance from resources
raise in worl capital market

Question) #hat oes the wor %7Tombstone7 stan for-
Correct Answer) Avertisement which lists the managers, unerwriters, 2ist of (roviers of
recently floate issue

Question) #hat is the effect of cross currency option on the customer-
Correct Answer) 6e gets the fle*ibility to e*posure, 6e is e*pose to aitional risk of movement
of rates between + currencies

!elect The "lank
Question) Forwar margin makes a currency cheaper then the currency is at 000000001
Correct Answer) Discount

Question) #hy oes a person nee protection from unfavourable movement of e*change rate-
Correct Answer) 9nfavourable fluctuations in e*change rate can wipe out the normal business
profit

Question) The capital market is sai to be volatile when
Correct Answer) (rices of capital market instruments change an are e*pecte to change
rastically

True8False
Question) IB means Ioint venture an #.! means #orl of !ecurity1

Question) #hat is the criteria for an Inian Company for Direct Investment abroa-
Correct Answer) Activity propose nee to be core activity, Financial commitment in IB8#.!
ma*imum < =@@ million or e/uivalent

True8False
Question) Integrate branches of Commercial banks hanle fore* transactions as well as options,
swaps, futures, arbitrage operations

Question) In the synicate loan arrangement the borrower has to e*ecute)4
Correct Answer) !ingle (rincipal loan agreement

True8False
Question) At 2east one principal 2ener bank is essential for issue of the AD3 or 5D31

Question) 9! financial system is the freest system because
Correct Answer) Institutions can introuce new proucts an instuments at the price of their
choice1

True8False
Question) Till August =CC: Inia was following the Inirect Methoof 3ate /uotation1

!elect The "lank
Question) Any company involve in foreign e*change transactions is e*pose to 00000000 risk1
Correct Answer) Currency

True8False
Question) Cause of increase in cost of public issues 9nerwriting fees, selling commission

True8False
Question) The .ption perio in the forwar contract is at the option of the banker, hence the bank
has to be very conservative in /uoting rates1

True8False
Question) In evelope markets, speculators play important role in etermining the tren of
currency rates1

!elect The "lank
Question) Forwar Margin makes a currency costlier then the currency is at 000000001
Correct Answer) (remium

!elect The "lank
Question) In mi =CC? 00000000 rejecte the ratification of Maastricht treaty
Correct Answer) Denmark

True8False
Question) The &egotiating bank e*amines the ocuments submitte by the seller an makes
payment if they comply the terms an conitions of the 2C1

True8False
Question) Country risk analysis is a futile e*ercise in the backgroun of cost of analysis1

True8False
Question) Charter party bills of laing are generally not acceptable to bankers as security because
!ea Charters are full of problems1

Question) If a ealer of securities is /uoting rate as ?@@4?;@ then the rate ?@@ signifies which rate
with reference to him-
Correct Answer) "i rate

!elect The "lank
Question) A Documentary creit issue on the strength of another ocumentary creit is known as
000000001
Correct Answer) "ack to "ack creit

True8False
Question) Tranche% is a manage issue of securities in smaller enominations1

!elect The "lank
Question) The major inustrial power whose economy was not affecte after the II worl war was
000000001
Correct Answer) 9!A

!elect The "lank
Question) 9ner the 00000000 stanar the Country%s Central "ank promise to buy back the
currency at certain rate of 5ol1
Correct Answer) 5ol

Question) #hich two countries were inclue to convert the group of five into the group of
seven-
Correct Answer) Italy, Canaa

Question) For setting up a joint venture or #.! abroa, Inian banks operating in Inia nee a
clearance)4
Correct Answer) 9ner "anking 3egulation Act

!elect The "lank
Question) The currency notes an coins of iniviual countries participating in 7'uro7 have
cease to be a legal tener from 000000001
Correct Answer) ?@@?

!elect The "lank
Question) (artnership firm not eligible for .verseas Direct Investment nees to apply to 3"I
Approval in form 000000001
Correct Answer) .DI
!elect The "lank
Question) To make the e*port more competitive an remunerative, the Inian 5ovt e*tens
00000000 facility1
Correct Answer) Cash Incentives

!elect The "lank
Question) Association of several scheule commercial banks for fore* business is 000000001
Correct Answer) Foreign '*change Dealers Association of Inia

True8False
Question) Installment creit is issue for specific /uantities of goos to be shippe every week or
month1

!elect The "lank
Question) #hen interest rate changes by @1@; per cent then it has change 00000000 basis points1
Correct Answer) ;@

Question) #hat were the primary objectives of the group of seven countries-
Correct Answer) "ring own the e*ternal value of 9! Dollar, "ring some stability to e*change
rates of all the countries

Question) Mr A sells an option conferring the right to buy a kilogram of silver at 3s >@@@84 for
ne*t si* months means)4
Correct Answer) The buyer of option can buy silver from Mr A at >@@@84 per Hg, in ne*t J
months, even if the price goes up, The buyer of option can sell silver to Mr A at >@@@84 per Hg, in
ne*t J months, even if the price goes own1 of option can buy silver from Mr A at >@@@84 per Hg,
in ne*t J months, even if the price goes up, Mr A has choice of selling or not selling silver on his
own

True8False
Question) #ith the avent of futures an .ptions there is no nee for aitional instruments of
risk heging1

!elect The "lank
Question) During the fi*e rate e*change system prevailing in Inia, the intervention currency
was 000000001
Correct Answer) !terling (oun

Question) #hat help oes 'NIM "ank provie uner the scheme %Direct financial assistance to
e*porters%-
Correct Answer) Funs are provie uner eferre payment terms to Inian e*porter for creit to
foreign buyer

Question) #hat are the objectives of International Chamber of Commerce-
Correct Answer) Champion the global economy as a force of economic growth, Creating of job
an prosperity

True8False
Question) An AD can book a forwar contract for a part of the amount of !ale Contract

Question) A 9sance bill of e*change may be rawn in ? ways1 #hich are they-
Correct Answer) Documents against payment, Documents against acceptance

True8False
Question) In an interest rate swap if the payment scheules are ientical, only iffrence between
the two payments is elivere1

Question) A weight list, a packing list use in international trae are which type of ocuments-
Correct Answer) .perational Documents

True8False
Question) &ake position is when investor oes not hege against market risk1

!elect The "lank
Question) Inian Co1 intening to make investment uner Automatic route nees to submit form
00000000 to 3"I with enclosures1
Correct Answer) .DA

!elect The "lank
Question) As a result of the worl wars in the ?@th century the 00000000 of most of the countries
suffere heavily1
Correct Answer) 'conomies

!elect The "lank
Question) !hort term instruments normally issue by corporate borrowers, forhigh values, at a
iscount to face value are known as 000000001
Correct Answer) 'uro Commercial (apers

!elect The "lank
Question) .ver the years 00000000has been the most wiely accepte currency in international
capital market1
Correct Answer) American Dollar

Question) #hich common etails will be available in any bill of 2aing-
Correct Answer) &ames of consigner, consignee, The port of loaing an unloaing, contract of
shipment

Question) #hat help oes 'NIM "ank provie uner the scheme SDirect Financial assistance to
e*porters%-
Correct Answer) Funs are provie uner eferre payment terms to Inian e*porter for creit to
foreign buyer

!elect The "lank
Question) 'ven after liberalisation of e*change controls, the 'uro sterling market remaine
volatile because of uncertainties in 9H an gyrations of sterling against major 00000000
countries

True8False
Question) The American Dollar market comprises of the omestic segment of 9!D the offshore
segment of 9!D1

!elect The "lank
Question) The creitworthiness of the futures seller an the futures buyer is 00000000 because of
the presence of the Futures e*change1
Correct Answer) Irrelevant

!elect The "lank
Question) In Inian interbank market forwar rates are generally /uote on the basis of
000000001
Correct Answer) Calenar month

!elect The "lank
Question) 3upee was liberalise on 00000000 account in =CC+, an on current account in =CC:1
Correct Answer) Trae

Question) 9ner which category of e*change rate i the Inian 3upee came from Iune C?-
Correct Answer) .ther manage Floating

Question) #hich of these are consiere as miscellaneous ocuments-
Correct Answer) (acking list, #eight certificate

!elect The "lank
Question) 'C5C provies cover to an Inian contractor for construction work abroa uner
000000001
Correct Answer) Construction works policy

Question) '/uity can be raise internationallly by a company through)4
Correct Answer) Fun raising, unerwriting, heging, arbitration operations

Question) #hich etails about forwar contracts o the '*change controls verify-
Correct Answer) (articulars of cancellation of forwar cover for the e/uivalent of 9!D ;@@,@@@

True8False
Question) In the forwar rate /uotations between two currencies, when one currency is at
iscount the other currency is at premium1

True8False
Question) Import finance is nomally available at rates of interest cheaper than omestic finance
rates1

True8False
Question) An Inian e*porting goos to &ew Mork receives ollars in &ew Mork1

!elect The "lank
Question) The type of trae where a country sells orange juice in return for cars is known as
000000001
Correct Answer) Counter Trae

Question) In which cases can a 3esient Iniviual in Inia ac/uire foreign securities without
prior approval-
Correct Answer) 5ift from a person outsie Inia, or Inheritance from a person resient in or
outsie Inia, !ecurity issue uner Cashless employees stock option scheme

Question) A !pot Transaction between Iapanese Men an !terling carrie out on Friay in
!ingapore, the settlement ay will be
Correct Answer) Following Tuesay if it is a working ay in all the three centers

True8False
Question) !anby creis are introuce by 9! "anks because they were not permitte to issue on
eman guarantees1

!elect The "lank
Question) The large flow of money internationally was cause primarily by the oil price hikes
engineere by 000000001
Correct Answer) .('C countries pean Countries

!elect The "lank
Question) An e*change rate for < was:>1?@;@, it is now :>1?@A;, then one says that it has move
00000000 basis points
Correct Answer) ?;

Question) A Forwar purchase contract was booke with an authorise ealer an subse/uently
cancelle It)4
Correct Answer) Can be booke again with another ealer, Can be booke again with the same
ealer

Question) #hat were the immeiate causes of converting the group of ; into group of A an
convene their meeting in late =C>;-
Correct Answer) Many Inustries in 9!A ha become uncompetitive with imports, In 9!A the
Trae protectionnism ha increase

True8False
Question) Transfer of funs for investment abroa is allowe freely1

True8False
Question) (( Form is re/uire when e*ports are mae to any country by post parcel on value
payable basis1

True8False
Question) The working of the I"3D an IMF in recent has blurre the ifference between the two

Question) In the conte*t of International economy, the perio between =C?@s an =C+@s is known
as
Correct Answer) 5reat Depression

Question) A "ank /uotes interest rate of C1;@8=@1@@ for si* months ollar eposit, here the bi rate
is)4
Correct Answer) C1;@$ (1A1

True8False
Question) F3&%s issue with ceiling on interest beyon which the issues is not re/uire to pay
interest is known as Mini4Ma* F3&

True8False
Question) In an alreay booke forwar contract, a person may seek early elivery, e*tension in
perio, or cancellation1

!elect The "lank
Question) F3&s are issue for a maturity perio of 00000000 an are normally reeeme in one
shot1
Correct Answer) ;4A years

True8False
Question) Corporates are allowe to raise funs abroa up to < =; million as short term finance if
they have '(C5 license1

Question) For issuing a Documentary creit The applicant is re/uire to provie to the issuing
bank etails about
Correct Answer) The purchase4sales contract, the moe of payment, the tenor of payment, The
ocuments re/uire, the names of authorities who woul issue the ocuments

Question) "ank with lowest "i for fees etc an which unertakes the responsibility of loan
synication is calle)4
Correct Answer) The lea bank4 leamanager4 arranger

!elect The "lank
Question) After the secon worl war many countries aopte the route of 00000000 to give
facelift to sagging economies1
Correct Answer) Devaluation of their currencies

True8False
Question) F'DAI oes not re/uire 3"I permission to frame an revise rules of business

Question) #hat is the Inian 5ovt%s obligation of becoming member of IMF-
Correct Answer) 'nsure orerly e*change arrangement, promote stable e*change rate

Question) #hat options oes the merchant have while booking a forwar Contract-
Correct Answer) Delivery on a Fi*e ate, within si* months, Delivery on a ate between two
ays separate by a perio of ma*imum one month

!elect The "lank
Question) A Dealer bought 9!D at :A1;@@@, in morning an the 9!D is /uote in the noon at =
9!D O:>1?@@@8:C1A@@@, then he has the opportunity for 000000001
Correct Answer) Arbitrage

Question) 6ow oes ICC access 5ovt an influence 5overnmental ecisions-
Correct Answer) Through national committees

True8False
Question) !ervices of a (aying bank are taken when currencies of e*porters country or the
importers country is not involve in the transaction1

!elect The "lank
Question) '*im acts as 00000000 for 5overnment, 3"I an ID"I1
Correct Answer) An agent

!elect The "lank
Question) In 00000000 transaction the elivery is postpone from the agree ate1
Correct Answer) 3ollover

Question) #hat non fune facilities are grante by '*port Import "ank of Inia-
Correct Answer) 5uarantee for "i bon, e*ecution of e*port project, for borrowings abroa, for
retention of money, Avance payment 5uarantee, performance guarantee

Question) The %.n "oar% bill of laing means bill of laing eviencing that)4
Correct Answer) The goos are put on boar a ship for shipment

Question) 6ow oes a company use swap to restructure ebt, in its balance sheet-
Correct Answer) "y resorting to floating rate from fi*e rate, "y resorting to fi*e rate from
floating rate

!elect The "lank
Question) 00000000 is the price at which the market maker is prepare to borrow the money1
Correct Answer) "i rate

Question) A Forwar purchase contract was booke with an authorise ealer an subse/uently
cancelle1It)4
Correct Answer) Can be booke again with another ealer, Can be booke again with the same
ealer

Question) #hen oes a bank have an absolute avantage, in respect of interest rate swaps-
Correct Answer) #hen it has avantage uner fi*e interest system as well as floating interest
rate system

Question) #hat was the official foreign currency reserve of the group of seven central "anks
taken togeather in mi =CC?-
Correct Answer) 9!D ?A; "illion

!elect The "lank
Question) The Trans 'uropean Automate 3eal Time 5ross !ettlement '*press Transfer is
popular in 000000001
Correct Answer) "russels

!elect The "lank
Question) #hen an Inian Company earns at least ;@$ of its average turnover from a particular
activity then that activity is consiere as 000000001
Correct Answer) Core activity

!elect The "lank
Question) The rate of interest on rupee finance for e*ports is not e*ceeing 00000000 less than
(231
Correct Answer) @1@?;

Question) 2arge number of e*porters from which country are enjoying the privilege of receiving
up front cash from importers in 3ussia-
Correct Answer) 9nite Hingom

True8False
Question) The (rominent non banking financial institutions participating in the F.3'N markets
are (ension funs, mutual funs, insurance Cos1

True8False
Question) The volume of traing of Derivatives in the worl trae market is growing but still only
;$ of the total1

Question) #hy are various methos of financial analysis use for assessing a cross borer
project-
Correct Answer) To wee out unviable projects an rank profitable ones

True8False
Question) .ut of =; member countries in 'uropean 9nion =? countries commitee themselves for
a single currency1

Question)
Correct
Correct
lumpsum fee for technical an consultancy services up to <?@@@@@
Correct
= ? :
correct
Correct
+ months notes with flat + months yiels
Correct
correct
Correct
= ? +
correct
false
3FC
correct
false
sale
gift
DD9
che/uebook T nomination
false
; to =@ years
=
true
true
=
False
ICC
.verseas inversment facility
Correct
import loans
true
--------
correct
correct
correct
correct
1 2
correct
????????
correct
correct
??????????
correct
correct
correct
correct
correct
correct
1 4
correct
registrars
correct
correct
correct
+ :
=
correct
true
correct
correct
correct
correct
calener month
'*change fluctuations 3isk cover
.DI
?????????
'nhance '!AF
correct
correct
correct
correct
correct
correct
correct
correct
correct
=
11

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