Multiple Choice Multiple Answer
Question
What are the categories of exposures, a person faces in International trade?
Correct Answer
Transaction exposure , Translation exposure
Your Answer
Transaction exposure , Exchange rate fluctuation , Political changes
Multiple Choice Multiple Answer
Question
The factors which affect the performance of an option are:-
Correct Answer
Underlying asset price , Time before expiration, rate of interest
Your Answer
Underlying asset price , Time before expiration, rate of interest
Select The Blank
Question
The option which can be exercised on the maturity date and not before it is known as________.
Correct Answer
European Option
Your Answer
European Option
Multiple Choice Single Answer
Question
What are the powers of restricted money changers?
Correct Answer
Purchase foreign currencies
Your Answer
Purchase and sell foreign currency notes and travellers cheques
Multiple Choice Multiple Answer
Question
Which contracts are used for transportation by road?
Correct Answer
FCA , CPT
Your Answer
FCA , CPT
 Multiple Choice Multiple Answer
  Question Â
The World Bank Group Consists of
  Correct Answer Â
International Development Association , International finance Corporation , Multinational Investment Guarantee Agency
 True/False
  Question Â
Naked position is when investor does not hedge against market risk.
  Correct Answer Â
True
  Your Answer Â
TRUE
 Multiple Choice Multiple Answer
  Question Â
In DAF, the frontier means :-
  Correct Answer Â
Frontier of exporter's country , Frontier of importer's country
 Multiple Choice Single Answer
  Question Â
Which type of Convertibility of Rupee launched in March 1992 ?
  Correct Answer Â
Limited convertibility
  Your Answer Â
Convertibility on current account
 Multiple Choice Single Answer
  Question Â
What was the reason for launching swap as an risk hedging instrument?
  Correct Answer Â
To avoid the effects of currency control imposed in UK
  Your Answer Â
To avoid the effects of currency control imposed in UK
 Multiple Choice Single Answer
  Question Â
Equity can be raised internationallly by a company through :-
  Correct Answer Â
Fund raising, underwriting, hedging , arbitration operations
  Your Answer Â
Floating debt instruments
 True/False
  Question Â
In forward sales, the delivery refers to actual cash flows on due date.
  Correct Answer Â
True
 Select The Blank
  Question Â
Any company involved in foreign exchange transactions is exposed to ________ risk.
  Correct Answer Â
Currency
  Your Answer Â
Payment
Â
 True/False
  Question Â
An AD can book a forward contract for a part of the amount of Sale Contract
  Correct Answer Â
True
 Multiple Choice Single Answer
  Question Â
Why does a person need protection from unfavourable movement of exchange rate?
  Correct Answer Â
Unfavourable fluctuations in exchange rate can wipe out the normal business profit
  Your Answer Â
He wants to make profit
 Match The Following
Question
Correct Answer
Your Answer
Merchant banking
Portfolio management
Portfolio management
Securitization
Issue of debt in the form of tradeable security
Issue of debt in the form of tradeable security
Prime borrower
Highest credit rating
Highest credit rating
Traditional banking service
Loans and cash credit against security
Loans and cash credit against security
 Multiple Choice Multiple Answer
  Question Â
What are the activities of ICC?
  Correct Answer Â
Aribtration and dispute resolving , Canvass for open trade combat commercial crime
  Your Answer Â
Aribtration and dispute resolving , Canvass for open trade combat commercial crime
 Multiple Choice Multiple Answer
  Question Â
Which factors influence the valuation of cash flows?
  Correct Answer Â
Incomplete capital market , Availability of projkect specific concessional finance,
  Your Answer Â
Incomplete capital market , Rates of inflation, , volatility of exchange rates
 Multiple Choice Multiple Answer
  Question Â
What is the objective of FEDAI?
  Correct Answer Â
Laying down terms and conditions of exchange business between Customers and Bankers , Interbank understanding for transacting forex business and exchange rates
  Your Answer Â
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>Select The Blank
  Question Â
Forward margin makes a currency cheaper then the currency is at ________.
  Correct Answer Â
Discount
  Your Answer Â
PAR
Â
 Match The Following
Question
Correct Answer
Your Answer
Intolerable risk
Drop the investment project
Cost of evluation does not justify analysis
Country risk analysis
Cost of evluation does not justify analysis
Continue the project
Stock market analysis
Banks are ahead
Banks are ahead
Weightages %
Factors' values
Factors' values
 Multiple Choice Single Answer
  Question Â
A bill of exchange issued by a bank which pays specified sum of money to the holder on a specific date is called :-
  Correct Answer Â
Bankers' Acceptance Bond
  Your Answer Â
Usance Bill of Exchange
 Multiple Choice Single Answer
  Question Â
In the syndicated loan arrangement the borrower has to execute :-
  Correct Answer Â
Single Principal loan agreement
  Your Answer Â
Single Principal loan agreement
 Select The Blank
  Question Â
Rupee was liberalised on ________ account in 1993, and on current account in 1994.
  Correct Answer Â
Trade
  Your Answer Â
Capital
 Select The Blank
  Question Â
Indian Co. intending to make investment under Automatic route needs to submit form ________ to RBI with enclosures.
  Correct Answer Â
ODA
  Your Answer Â
ODA
 Multiple Choice Multiple Answer
  Question Â
A Forward purchase contract was booked with an authorised dealer and subsequently cancelled .It :-
  Correct Answer Â
Can be booked again with another dealer , Can be booked again with the same dealer
  Your Answer Â
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.
Select The Blank
Question
The ________is a Floating rate index for swaps.
Correct Answer
US Commercial paper rate
Your Answer
US Commercial paper rate
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International Finance - 1
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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question An option on a future is ________.
Correct Answer Derivative on a derivative
Your Answer Derivative on a derivative
Multiple Choice Single Answer
Question Borrower from a developing country can borrow from US market
Correct Answer Only if it has high credit rating and the country's Govt gives a guarantee for the same.
Your Answer Only if it has high credit rating and the country's Govt gives a guarantee for the same.
Select The Blank
Question "Flip-Flop', 'Mini-Max', 'Capped' 'Perpetual' are the various types of ________.
Correct Answer Floating Rate Note (FRN)
Your Answer Floating Rate Note (FRN)
True/False
Question Open Insurance policy is for any amount for specific period and specific number of shipments.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question Internationally only those currencies are in demand
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
Multiple Choice Multiple Answer
Question Which common details will be available in any bill of Lading?
Correct Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment
Your Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment
Multiple Choice Multiple Answer
Question Which of these are considered as miscellaneous documents?
Correct Answer Packing list , Weight certificate
Your Answer Packing list , Weight certificate
Select The Blank
Question The major industrial power whose economy was not affected after the II world war was ________.
Correct Answer USA
Your Answer USA
Multiple Choice Multiple Answer
Question Transaction exposures arises because of :-
Correct Answer The cost of settlement of future payment changes , Receipt denominated in a foreign currency varies due to exchange rate fluctuation
Your Answer The cost of settlement of future payment changes , Receipt denominated in a foreign currency varies due to exchange rate fluctuation
Multiple Choice Multiple Answer
Question World Bank gives loans for
Correct Answer Structural Adjustments , Infrastructure projects , BOP problems
Your Answer Structural Adjustments , Infrastructure projects , BOP problems
Match The Following
Question Correct Answer Your Answer
Maturity of future Time when actual commodity is delivered Time when actual commodity is delivered
Note issuance facility Euronotes Euronotes
Bearer security issued in currency other than that of the country of issue Eurobonds Eurobonds
Margin on future Peformance bond or security deposit Peformance bond or security deposit
Select The Blank
Question Global capital market can be understood from the study of ________.
Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Select The Blank
Question The type of trade where a country sells orange juice in return for cars is known as ________.
Correct Answer Counter Trade
Your Answer Counter Trade
Multiple Choice Multiple Answer
Question Who can issue the Certificate of Inspection?
Correct Answer Export Inspection Council , Person authorised by Importer.
Your Answer Export Inspection Council , Person authorised by Importer.
True/False
Question Multimodal transport document is also known as "IntermobileTransport Document"
Correct Answer True
Your Answer True
Select The Blank
Question The currency swaps used ________.
Correct Answer To lower the risk of currency exposure
Your Answer To lower the risk of currency exposure
Select The Blank
Question Over the years ________has been the most widely accepted currency in international capital market.
Correct Answer American Dollar
Your Answer American Dollar
Multiple Choice Multiple Answer
Question The various arms of World Bank are:
Correct Answer International Development Agency , Multinational Investment Guarantee Agency
Your Answer International Development Agency , Multinational Investment Guarantee Agency
Multiple Choice Single Answer
Question In case of forward cover for repayment of foreign currency loan extending over a period of more than six months which type of contract is booked?
Correct Answer Forward sales contract on roll over basis
Your Answer Forward sales contract for the entire period of loan
Multiple Choice Single Answer
Question In the context of International economy ,the period between 1920s and 1930s is known as
Correct Answer Great Depression
Your Answer Great Depression
Multiple Choice Multiple Answer
Question What were the primary objectives of the group of seven countries?
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
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
Multiple Choice Single Answer
Question Under which category of exchange rate did the Indian Rupee came from June 92?
Correct Answer Other managed Floating
Your Answer Other managed Floating
Multiple Choice Single Answer
Question How many Countries participated in the third survey on Foreign Exchange, coordinated by BIS in 1992?
Correct Answer 26
Your Answer 26
True/False
Question In a coupon swap the receiver is the one who receives fixed rate of interest.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Examples of hedge are:
Correct Answer Buy when you are having short position
Your Answer Buy when you are having short position
Match The Following
Question Correct Answer Your Answer
Intolerable risk Drop the investment project Drop the investment project
Country risk analysis Cost of evluation does not justify analysis Cost of evluation does not justify analysis
Stock market analysis Banks are ahead Banks are ahead
Weightages % Factors' values Factors' values
True/False
Question Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument.
Correct Answer False
Your Answer False
Select The Blank
Question Forward Margin makes a currency costlier then the currency is at ________.
Correct Answer Premium
Your Answer Premium
Multiple Choice Single Answer
Question What maxim is followed by the forex dealer when indirect method of exchange rate quotation is used?
Correct Answer Buy Low, sell High
Your Answer Buy High, Sell Low
Multiple Choice Multiple Answer
Question How does a company use swap to restructure debt, in its balance sheet?
Correct Answer By resorting to floating rate from fixed rate , By resorting to fixed rate from floating rate
Your Answer By resorting to fixed rate from floating rate
Multiple Choice Single Answer
Question Financial management is complex process for
Correct Answer Companies which have international trade
Your Answer Companies which have international trade
True/False
Question Funding Options in domestic yen market are Futures, FRAs, Call and put options.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The crisis in global capital market in 2002-04 was due to
Correct Answer Collapse of Enron , Collapse of Argentina's currency board , The war against terrorism
Your Answer Collapse of Enron , Collapse of Argentina's currency board , The war against terrorism
Multiple Choice Single Answer
Question To whom is an AD required to report the cancellation of forward contracts?
Correct Answer No one at all.
Your Answer No one at all.
Select The Blank
Question The rate of interest on rupee finance for exports is not exceeding ________ less than PLR.
Correct Answer 0.025
Your Answer 0.025
Multiple Choice Multiple Answer
Question For issuing a Documentary credit The applicant is required to provide to the issuing bank details about
Correct Answer 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 Answer The purchase-sales contract, the mode of payment, the tenor of payment , The documents required, the names of authorities who would issue the documents
Multiple Choice Single Answer
Question The severemost problem faced by the Fixed exchange rate system was
Correct Answer Inability of US to change gold for dollars
Your Answer Inability of US to change gold for dollars
Multiple Choice Single Answer
Question Fixed, Floating or Limited flexibility are used in the context of
Correct Answer Exchange Rates
Your Answer Exchange Rates
True/False
Question An exporter expecting payment in$ next month will book a forward purchase contract.
Correct Answer False
Your Answer False
True/False
Question An Indian importing goods from USA pays dollars in India.
Correct Answer False
Your Answer False
Select The Blank
Question EUROCLEAR, CEDEL are the names of ________ related with the issue of GDR.
Correct Answer Registrars
Your Answer Registrars
Multiple Choice Multiple Answer
Question What are the functions of Asian Development Bank?
Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Multiple Choice Single Answer
Question What is the main purpose of a commercial invoice?
Correct Answer To establish the contract of sale between the two parties.
Your Answer Contains summary of all other documents enclosed
Select The Blank
Question Value of USDollar is ________ in the world market but RBI is trying to match the Rupee value with it.
Correct Answer Depreciating
Your Answer Depreciating
Multiple Choice Multiple Answer
Question Which events can lead to materialisation of country risk?
Correct Answer Change in Government policies , Change in Government rules and laws
Your Answer Change in Government policies , Change in Government rules and laws
True/False
Question Long in futures means a commitment to sell futures at a future date.
Correct Answer False
Your Answer True
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question What do you understand by Commercial Risk?
Correct Answer Protracted default by the buyer , Insolvency of the buyer
Your Answer Protracted default by the buyer , Insolvency of the buyer
True/False
Question In a coupon swap the principal amount is identical in the same currency.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What are the sources of raising funds for exports?
Correct Answer Suppliers credit , Forfaiting
Your Answer Suppliers credit , Forfaiting , Buyers credit , Foreign currency or Rupee finance
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 False
Match The Following
Question Correct Answer Your Answer
Issuing Bank Opening Bank Bank guarantee
Stand by credit Bank guarantee Opening Bank
Letter of credit Documentary credit Anticipatory Credit
Bill of exchange Usance Third country currency
Multiple Choice Single Answer
Question What are the powers of restricted money changers?
Correct Answer Purchase foreign currencies
Your Answer Purchase foreign currencies, foreign bills, cheques, against Indian Rupee
Multiple Choice Single Answer
Question Value date means the date on which :-
Correct Answer Delivery of both the currencies will be made
Your Answer The delivery of one of the currencies will be made
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 True
Select The Blank
Question Over the years ________has been the most widely accepted currency in international capital market.
Correct Answer American Dollar
Your Answer Deutsche Mark
Select The Blank
Question QA request for additional ________ funds from a customer in a margin call.
Correct Answer Margin
Your Answer Margin
Multiple Choice Multiple Answer
Question The crisis in global capital market in 2002-04 was due to
Correct Answer Collapse of Enron , Collapse of Argentina's currency board , The war against terrorism
Your Answer Collapse of Argentina's currency board , The war against terrorism , Russian and Long term capital management crisis
Select The Blank
Question In US Capital Market a Company prepares all the necessary documents in advance of the public issue under the facility known as ________.
Correct Answer Shelf Registration
Your Answer Advance Registration
True/False
Question Installment credit is issued for specific quantities of goods to be shipped every week or month.
Correct Answer True
Your Answer True
Select The Blank
Question Forward Margin makes a currency costlier then the currency is at ________.
Correct Answer Premium
Your Answer PAR
Multiple Choice Multiple Answer
Question As per BIS, recovery from the recent crisis in global capital market was mainly due to
Correct Answer Rapid and appropriate policy response in US and other countries , Increase in Foreign Direct Investments , free flow of credit
Your Answer Increase in Foreign Direct Investments , free flow of credit , Devaluation of currencies , Serious Problems in Argentina and Turkey
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 False
Multiple Choice Multiple Answer
Question With reference to ECB, fund raising activity includes :-
Correct Answer Floating rate notes, bonds, debentures , Syndicate loans, issue of shares
Your Answer Floating rate notes, bonds, debentures , Syndicate loans, issue of shares , Forward contracts and options
True/False
Question In an already booked forward contract, a person may seek early delivery, extension in period, or cancellation.
Correct Answer True
Your Answer False
Select The Blank
Question Even after liberalisation of exchange controls, the Euro sterling market remained volatile because of uncertainties in UK and gyrations of sterling against major ________ countries
Correct Answer OECD
Your Answer ECU
Multiple Choice Single Answer
Question Method of advance payment is not disadvantageous to :-
Correct Answer The seller
Your Answer The buyer
Select The Blank
Question After the second world war many countries adopted the route of ________ to give facelift to sagging economies.
Correct Answer Devaluation of their currencies
Your Answer Devaluation of their currencies
True/False
Question Head office of ICC is in Paris because of its First President Eliance Clementel.
Correct Answer True
Your Answer True
Select The Blank
Question An option on a future is ________.
Correct Answer Derivative on a derivative
Your Answer Irrelevant
True/False
Question In the forward rate quotations between two currencies, when one currency is at discount the other currency is at premium.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What is the immediate cause for the growth of futures and options in the last two decades?
Correct Answer Increase in volatile trading conditions
Your Answer Increase in volatile trading conditions
Multiple Choice Multiple Answer
Question Which of these are considered as miscellaneous documents?
Correct Answer Packing list , Weight certificate
Your Answer Packing list , Weight certificate
Multiple Choice Single Answer
Question What is the Indian Govt's obligation of becoming member of IMF?
Correct Answer Ensure orderly exchange arrangement, promote stable exchange rate
Your Answer Introduce floating exchange rate mechanism
Select The Blank
Question A Documentary credit issued on the strength of another documentary credit is known as ________.
Correct Answer Back to Back credit
Your Answer With recourse credit
Multiple Choice Single Answer
Question What was the purpose of reviewing FERA 1973 in the year 1993?
Correct Answer Economic Liberalisation relating to Foreign trade and Foreign investments
Your Answer To pave way for Capital account convertibility of Rupee
Multiple Choice Multiple Answer
Question What are the main causes of fluctuations in Exchange rates?
Correct Answer Government regulatios, fiscal policies, political instabilities , Market demand and supply, sentiments
Your Answer Government regulatios, fiscal policies, political instabilities , Market demand and supply, sentiments , The purchasing power of currency changes every second
Multiple Choice Multiple Answer
Question The maximum period for which a forward contract can be granted by the AD depends upon which RBI directives?
Correct Answer Maximum Period of repatriation of export proceeds , Maximum Period of payment for Imports
Your Answer Maximum Period of payment for Imports
Select The Blank
Question For setting up joint ventures abroad or equity participation abroad, EXIM bank provides funds under ________ Scheme.
Correct Answer Overseas investment facility
Your Answer Overseas investment facility
Select The Blank
Question For importing goods in India RBI insists on ________ value.
Correct Answer CIF
Your Answer CFR
Multiple Choice Single Answer
Question In International trade, Advance payment means :-
Correct Answer Providing up front cash
Your Answer Providing up front cash
Multiple Choice Single Answer
Question In Import financing through trust receipts, with whom does the ownership of goods remain?
Correct Answer Bank releasing the import documents
Your Answer Exporter
Multiple Choice Single Answer
Question When the Indian party holding majority shares in the foreign entity which is less than two years old, intend to set up a second generation company then what formalities will it have to complete?
Correct Answer Seek specific approval from Reserve Bank of India
Your Answer Seek specific approval from Reserve Bank of India
Multiple Choice Single Answer
Question When does a bank have an absolute advantage, in respect of interest rate swaps?
Correct Answer When it has advantage under fixed interest system as well as floating interest rate system
Your Answer When it increases the cost of capital
Multiple Choice Single Answer
Question Which type of finance is available for the full value of the asset, in international trade?
Correct Answer International Leasing
Your Answer Bills sent on collection basis
Multiple Choice Multiple Answer
Question What options does the merchant have while booking a forward contract?
Correct Answer Delivery on a Fixed date, within six months , Delivery on a date between two days separated by a period of maximum one month
Your Answer 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
True/False
Question Prior approval of RBI is needed for payment of all imports.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What are the features of Settlement price ?
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 , It is the same as strike price
True/False
Question Normally the forward contracts are booked for making huge profits.
Correct Answer False
Your Answer True
Match The Following
Question Correct Answer Your Answer
PP Form Export Declaration form Risk covering Document
Health Certificate Fumigation certificate Export Promotion Council
Certificate of Inspection As per importers requirement As per importers requirement
Certifiate of Origin Export Promotion Council Fumigation certificate
Multiple Choice Multiple Answer
Question Which contracts are used for transportation by road?
Correct Answer FCA , CPT
Your Answer FCA , CPT , CFR
Multiple Choice Multiple Answer
Question What is the criteria for an Indian Company for Direct Investment abroad?
Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent
Your Answer Activity proposed need to be core activity , Entity abroad is a holding co , Indian co should not have been black listed
Select The Blank
Question In ________ transaction the delivery is postponed from the agreed date.
Correct Answer Rollover
Your Answer Rollover
Multiple Choice Single Answer
Question Proforma Invoice, Commercial Invoice, Consaular Invoice are which type of documents?
Correct Answer Commercial Documents
Your Answer Regulatory Documents
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question Transaction exposures arises because of :-
Correct Answer The cost of settlement of future payment changes , Receipt denominated in a foreign currency varies due to exchange rate fluctuation
Your Answer The cost of settlement of future payment changes , Receipt denominated in a foreign currency varies due to exchange rate fluctuation , The party abroad may not pay
Multiple Choice Single Answer
Question Large number of exporters from which country are enjoying the privilege of receiving up front cash from importers in Russia?
Correct Answer United Kingdom
Your Answer United Kingdom
Select The Blank
Question Under the ________ standard the Country's Central Bank promised to buy back the currency at certain rate of Gold.
Correct Answer Gold
Your Answer Gold
Multiple Choice Multiple Answer
Question The various arms of World Bank are:
Correct Answer International Development Agency , Multinational Investment Guarantee Agency
Your Answer International Development Agency , Asian Development Bank , International Monetary Fund
True/False
Question Funding Options in domestic yen market are Futures, FRAs, Call and put options.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Sterling Market is attractive for an international investor because
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
Multiple Choice Single Answer
Question Under which category of exchange rate did the Indian Rupee came from June 92?
Correct Answer Other managed Floating
Your Answer Other managed Floating
Select The Blank
Question To make the export more competitive and remunerative, the Indian Govt extends ________ facility.
Correct Answer Cash Incentives
Your Answer Cash Incentives
Select The Blank
Question The price at which a person may purchase or sell the underlying ________.
Correct Answer Exercise or strike price
Your Answer Market price
Select The Blank
Question Value of USDollar is ________ in the world market but RBI is trying to match the Rupee value with it.
Correct Answer Depreciating
Your Answer Fluctuating
Multiple Choice Single Answer
Question Who are the members of the Special committee on Indian Direct Investments abroad, for normal route?
Correct Answer Representatives of Ministry of finance, Ministry of Economic affairs, Ministry of Commerce and RBI
Your Answer Representatives of Ministry of finance, Ministry of Economic affairs, Ministry of Commerce and RBI
Multiple Choice Multiple Answer
Question The characteristics of an International documentary credit are :-
Correct Answer It 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 Answer It 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
Multiple Choice Multiple Answer
Question Export finance
Correct Answer Preshipment credit , Post shipment credit , Duty Draw back
Your Answer Preshipment credit , Post shipment credit , Duty Draw back
Select The Blank
Question A Credit can be a confirmed credit only if it is also ________.
Correct Answer An Irrevocable credit
Your Answer An Irrevocable credit
True/False
Question Open Insurance policy is for any amount for specific period and specific number of shipments.
Correct Answer False
Your Answer True
True/False
Question Yankee bond is issued for domestic borrowers.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question How does ECGC protect banker's against risks for export finance?
Correct Answer Issuing various guarantees covering different risks connected with exports at nominal premium
Your Answer Issuing various guarantees covering different risks connected with exports at nominal premium
Match The Following
Question Correct Answer Your Answer
LastStage Form a single currency Meet in Maastricht in Netherland
The First stage in the Europeand and Monetary Union (EMU) Free movement of capital in EC Free movement of capital in EC
Stage II in EMU Establishment of European Monetary Institute Establishment of European Monetary Institute
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
Multiple Choice Single Answer
Question A Spot Transaction between Japanese Yen and Sterling carried out on Friday in Singapore, the settlement day will be
Correct Answer Following Tuesday if it is a working day in all the three centers
Your Answer Following Monday if it is a working day in all the three centers
Multiple Choice Single Answer
Question How many INCOTERMS are there in "Departure" Group?
Correct Answer One
Your Answer One
Match The Following
Question Correct Answer Your Answer
Treasury management Profit making Hedging instruments
Arbitraging Rate disparity Banks and multinationals
Futures, Options Hedging instruments Speculation
Exchange Rate volatility Speculation Rate disparity
True/False
Question In UK in london Market the Indirect Quote Method is still adopted.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What is a bill of lading?
Correct Answer Transport document representing movement of goods by water.
Your Answer Transport document representing movement of goods by water.
Select The Blank
Question Exim acts as ________ for Government, RBI and IDBI .
Correct Answer An agent
Your Answer Authorised dealer
Multiple Choice Single Answer
Question How many terms are there under the class " main carriage unpaid"?
Correct Answer Three
Your Answer Four
Multiple Choice Multiple Answer
Question What do you understand by 'Foreign Exchange Risk'?
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
Select The Blank
Question The type of trade where a country sells orange juice in return for cars is known as ________.
Correct Answer Counter Trade
Your Answer Counter Trade
True/False
Question Tranche' is a managed issue of securities in smaller denominations.
Correct Answer True
Your Answer True
True/False
Question Floating rate notes are traded in secondary market also.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What were the primary objectives of the group of seven countries?
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 , Stop the process of protectionism in USA
Multiple Choice Multiple Answer
Question Which functions does the Bill of Lading serve?
Correct Answer It is a document of title to goods. , It is receipt of goods
Your Answer It is a document of title to goods. , It is receipt of goods
True/False
Question Till August 1994 India was following the Indirect Methodof Rate quotation.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question What are the functions of Export Import Bank of India?
Correct Answer Finance functions and development functions
Your Answer Finance functions and development functions
Multiple Choice Multiple Answer
Question The major cost components of NIF are :-
Correct Answer Underwriters fees , Margins of notes
Your Answer Underwriters fees , Documentation charges , Issue registration fees
Select The Blank
Question The rate of interest on rupee finance for exports is not exceeding ________ less than PLR.
Correct Answer 0.025
Your Answer 0.025
Multiple Choice Multiple Answer
Question For issuing a Documentary credit The applicant is required to provide to the issuing bank details about
Correct Answer 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 Answer The purchase-sales contract, the mode of payment, the tenor of payment , The documents required, the names of authorities who would issue the documents
True/False
Question An AD can book a forward contract for a part of the amount of Sale Contract
Correct Answer True
Your Answer True
True/False
Question Transfer of funds for investment abroad is allowed freely.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Which causes may force a country to restrict imports or restrict transfer of payments?
Correct Answer Economic difficulties , Balance of payment problems such as non availability of exchange reserves
Your Answer Economic difficulties , Balance of payment problems such as non availability of exchange reserves , Non availability of appropriate transfer technology with banks
Select The Blank
Question The creditworthiness of the futures seller and the futures buyer is ________ because of the presence of the Futures exchange.
Correct Answer Irrelevant
Your Answer Irrelevant
Multiple Choice Single Answer
Question In case the value date happens to be a holiday then the settlement is done :-
Correct Answer On the next working day
Your Answer On the next working day
Multiple Choice Single Answer
Question What is Risk Syndication facility?
Correct Answer Sharing of risk of non payment by supplier
Your Answer Sharing of risk of non payment by supplier
Multiple Choice Multiple Answer
Question What are the functions of International Finance Corporation?
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
Multiple Choice Single Answer
Question Before abandoning the Fixed exchange rate system,the Dollar gold parity was fixed by USA at
Correct Answer USD 35 per Ounce of gold
Your Answer 1 USD , per 35 Ounce of gold
Select The Blank
Question An exchange rate for $ was48.2050, it is now 48.2075, then one says that it has moved ________ basis points
Correct Answer 25
Your Answer 0.0025
Select The Blank
Question The credit which does not constitute a legally binding undertaking between the bank and the beneficiary is ________.
Correct Answer Revocable Credit
Your Answer Revocable Credit
Multiple Choice Single Answer
Question Financial management is complex process for
Correct Answer Companies which have international trade
Your Answer Companies which have international trade
Select The Blank
Question Over the years ________has been the most widely accepted currency in international capital market.
Correct Answer American Dollar
Your Answer American Dollar
True/False
Question Bid rate is bidders buying rate and offered rate is bidders selling rate.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What is Sovereign Risk?
Correct Answer Risk of lending to the government of a country
Your Answer Risk of lending to the government of a country
Multiple Choice Single Answer
Question Why have futures and options come into existence?
Correct Answer To avoid business risk.
Your Answer To maximise profit
Multiple Choice Single Answer
Question The regulations under FEMA are contained in which manual?
Correct Answer Exchange control Manual
Your Answer FEMA Manual
Multiple Choice Multiple Answer
Question What options does the merchant have while booking a forward contract?
Correct Answer Delivery on a Fixed date, within six months , Delivery on a date between two days separated by a period of maximum one month
Your Answer Delivery on a Fixed date, within six months , Delivery on a date between two days separated by a period of maximum one month
True/False
Question In a coupon swap the principal amount is identical in the same currency.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Financial management is complex process for
Correct Answer Companies which have international trade
Your Answer Companies which have international trade
True/False
Question Bridge Loans are granted for construction of large size bridges, and flyovers.
Correct Answer False
Your Answer False
Match The Following
Question Correct Answer Your Answer
Swap price Difference in prices of two legs of buying and selling Difference in prices of two legs of buying and selling
Euro Market Market in Euro currencies Market in Euro currencies
Making market Quoting rate for both buying and selling a currency Quoting rate for both buying and selling a currency
Spread Price difference between bid and offer Price difference between bid and offer
Select The Blank
Question QA request for additional ________ funds from a customer in a margin call.
Correct Answer Margin
Your Answer Margin
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
Select The Blank
Question Value of USDollar is ________ in the world market but RBI is trying to match the Rupee value with it.
Correct Answer Depreciating
Your Answer Depreciating
Multiple Choice Multiple Answer
Question Why does a Transaction exposure arise?
Correct Answer Trading flows , Dividend or capital flows
Your Answer Valuation of assets and liabilities abroad in financial statements , Present value of future transaction abroad
Multiple Choice Multiple Answer
Question What were the immediate causes of converting the group of 5 into group of 7 and convene their meeting in late 1985?
Correct Answer Many Industries in USA had become uncompetitive with imports , In USA the Trade protectionnism had increased
Your Answer Many Industries in USA had become uncompetitive with imports , In USA the Trade protectionnism had increased
Multiple Choice Single Answer
Question Under which category of exchange rate did the Indian Rupee came from June 92?
Correct Answer Other managed Floating
Your Answer Other managed Floating
Multiple Choice Multiple Answer
Question Mr A sells an option conferring the right to buy a kilogram of silver at Rs 8000/- for next six months means :-
Correct 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.
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.
Select The Blank
Question Global capital market can be understood from the study of ________.
Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Select The Blank
Question A Bill of exchange payable 45 days from date of shipment, is a means of ________ from seller to the buyer.
Correct Answer Credit
Your Answer Credit
True/False
Question Floating rate notes are traded in secondary market also.
Correct Answer True
Your Answer True
True/False
Question At Least one principal Lender bank is essential for issue of the ADR or GDR.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question With whom can an exporter or importer book the forward contract?
Correct Answer Authorised dealer/Authorised person
Your Answer Exchange Brokers
Select The Blank
Question Partnership firm not eligible for Overseas Direct Investment needs to apply to RBI Approval in form ________.
Correct Answer ODI
Your Answer ODC
True/False
Question CFR = FOB plus freight paid by seller + insurance paid by seller.
Correct Answer False
Your Answer False
Select The Blank
Question In ________ contract, though seller pays the freight, seller's risk is not extended till destination.
Correct Answer CIF
Your Answer CIF
Select The Blank
Question The rate of interest on rupee finance for exports is not exceeding ________ less than PLR.
Correct Answer 0.025
Your Answer 0.025
Select The Blank
Question ________ is the agency of ICC which deals with the maritime crime.
Correct Answer International Maritime Bureau
Your Answer International Maritime Bureau
Select The Blank
Question Any company involved in foreign exchange transactions is exposed to ________ risk.
Correct Answer Currency
Your Answer Currency
Multiple Choice Multiple Answer
Question What are the main causes of fluctuations in Exchange rates?
Correct Answer Government regulatios, fiscal policies, political instabilities , Market demand and supply, sentiments
Your Answer Government regulatios, fiscal policies, political instabilities , Market demand and supply, sentiments
Select The Blank
Question Fixed interest rate Eurobond without the option to convert to equity is known as ________.
Correct Answer Straight Debt
Your Answer Straight Debt
Multiple Choice Multiple Answer
Question Sterling Market is attractive for an international investor because
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
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 Integrated branches of Commercial banks handle forex transactions as well as options, swaps, futures, arbitrage operations
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Internationally only those currencies are in demand
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
True/False
Question Yankee bond is issued for domestic borrowers.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question How many Countries participated in the third survey on Foreign Exchange, coordinated by BIS in 1992?
Correct Answer 26
Your Answer 26
Multiple Choice Multiple Answer
Question What are the functions of Asian Development Bank?
Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Multiple Choice Multiple Answer
Question A Forward purchase contract was booked with an authorised dealer and subsequently cancelled .It :-
Correct Answer Can be booked again with another dealer , Can be booked again with the same dealer
Your Answer Can be booked again with another dealer , Can be booked again with the same dealer
Multiple Choice Single Answer
Question The capital market is said to be volatile when
Correct Answer Prices of capital market instruments change and are expected to change drastically
Your Answer Prices of capital market instruments change and are expected to change drastically
Multiple Choice Single Answer
Question The severemost problem faced by the Fixed exchange rate system was
Correct Answer Inability of US to change gold for dollars
Your Answer Inability of US to change gold for dollars
True/False
Question In forward sales, the delivery refers to actual cash flows on due date.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question World Bank gives loans for
Correct Answer Structural Adjustments , Infrastructure projects , BOP problems
Your Answer Structural Adjustments , Infrastructure projects , BOP problems , Long term Working capital
Multiple Choice Single Answer
Question Exchange Rate means
Correct Answer Value of one currency in terms of another
Your Answer Value of gold in terms of currency
Multiple Choice Multiple Answer
Question As regards the due date of an Option exercise which methods are in vogue?
Correct Answer American option , European Option
Your Answer American option , European Option , Exercise date , Asian Option
Multiple Choice Single Answer
Question In the syndicated loan arrangement the borrower has to execute :-
Correct Answer Single Principal loan agreement
Your Answer Single Principal loan agreement
Select The Blank
Question Forward Margin makes a currency costlier then the currency is at ________.
Correct Answer Premium
Your Answer Premium
Match The Following
Question Correct Answer Your Answer
Bond basis to money market basis Bond basisx 360/365 Bond basisx 360/365
3 months LIBOR +2 % PA Floating rate Floating for floating rate currency swap
15% P.A. Fixed rate Money market basis x 365/360
Money market basis to bond basis Money market basis x 365/360 Floating rate
International Finance assgn 02_VSuneetha
Multiple Choice Multiple Answer
Question What schemes have been floated by RBI for facilitating Inter bank transactions?
Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market
Your Answer Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates
Select The Blank
Question ________ is the agency of ICC which deals with the maritime crime.
Correct Answer International Maritime Bureau
Your Answer International Maritime Bureau
Multiple Choice Single Answer
Question Which of them are special funding facilities of IMF ?
Correct Answer Buffer Stock Facility
Your Answer Buffer Stock Facility
True/False
Question Cross currency forward contract is not meaningful if original contract is in Rupees to USD
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What does a speculator accept while dealing with an option?
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
Multiple Choice Single Answer
Question Which is the most actively traded currency in the international market today?
Correct Answer US Dollar
Your Answer US Dollar
Match The Following
Question Correct Answer Your Answer
Intolerable risk Drop the investment project Drop the investment project
Country risk analysis Cost of evluation does not justify analysis Cost of evluation does not justify analysis
Stock market analysis Banks are ahead Factors' values
Weightages % Factors' values 100% of total
Select The Blank
Question Global capital market can be understood from the study of ________.
Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Multiple Choice Single Answer
Question For a spot transaction carried out on Thursday, currencies will be exchanged on :-
Correct Answer Monday
Your Answer Monday
Multiple Choice Single Answer
Question Under which category of exchange rate did the Indian Rupee came from June 92?
Correct Answer Other managed Floating
Your Answer Pegged to Single currency
Match The Following
Question Correct Answer Your Answer
Maturity of future Time when actual commodity is delivered Last date of exercising option
Note issuance facility Euronotes Euronotes
Bearer security issued in currency other than that of the country of issue Eurobonds Eurobonds
Margin on future Peformance bond or security deposit Peformance bond or security deposit
True/False
Question Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument.
Correct Answer False
Your Answer False
True/False
Question The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What are margins, with reference to futures market?
Correct Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts
Your Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts
Multiple Choice Single Answer
Question What is the volume of the world's average daily transactions in foreign exchange?
Correct Answer USD 1 trillion
Your Answer USD 1 trillion
Multiple Choice Single Answer
Question NIF is basically an agreement :-
Correct Answer By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers
Your Answer Which enables the investor to market the same in the secondary market
Multiple Choice Single Answer
Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992?
Correct Answer USD 275 Billion
Your Answer USD 275 Billion
Multiple Choice Single Answer
Question What Preshipment facility is granted by EXIM Bank to an exporter?
Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad
Your Answer Preshipment credit up to six months for construction and turnkey projects abroad
Select The Blank
Question Over the years ________has been the most widely accepted currency in international capital market.
Correct Answer American Dollar
Your Answer American Dollar
Select The Blank
Question As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily.
Correct Answer Economies
Your Answer Currencies
Multiple Choice Single Answer
Question Which currency is traded in one leg of about 70% of the world's transactions?
Correct Answer US Dollar
Your Answer US Dollar
Select The Blank
Question ________ is the acid test for events to be included in country risk.
Correct Answer Control by Government'
Your Answer Recurrence
Select The Blank
Question The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________.
Correct Answer Brussels
Your Answer Brussels
Multiple Choice Single Answer
Question What is Risk Syndication facility?
Correct Answer Sharing of risk of non payment by supplier
Your Answer Sharing risk of Non payment by the Syndicate of Banks giving loans
True/False
Question If ERD > IRD hen exporter should availa Rupee finance
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The characteristics of an International documentary credit are :-
Correct Answer It 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 Answer It 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
Multiple Choice Multiple Answer
Question Which debits are permitted to EEFC accounts?
Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
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 There is no difference between CIP and CIF contracts except the mode of transportation.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Financial management is complex process for
Correct Answer Companies which have international trade
Your Answer Companies which have international trade
Select The Blank
Question When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________.
Correct Answer Core activity
Your Answer Primary activity
Select The Blank
Question A Credit can be a confirmed credit only if it is also ________.
Correct Answer An Irrevocable credit
Your Answer An Irrevocable credit
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 False
Multiple Choice Single Answer
Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs?
Correct Answer USD 1=Rs 50.5000
Your Answer USD 1=Rs 50.5000
Multiple Choice Multiple Answer
Question Export finance
Correct Answer Preshipment credit , Post shipment credit , Duty Draw back
Your Answer Preshipment credit , Post shipment credit , Buyers credit
Multiple Choice Multiple Answer
Question Internationally only those currencies are in demand
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
Multiple Choice Multiple Answer
Question What are the functions of Asian Development Bank?
Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Multiple Choice Multiple Answer
Question What does the word '"Tombstone" stand for?
Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Select The Blank
Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________.
Correct Answer Euro Commercial Papers
Your Answer Euro Commercial Papers
Multiple Choice Single Answer
Question Why are various methods of financial analysis used for assessing a cross border project ?
Correct Answer To weed out unviable projects and rank profitable ones
Your Answer To weed out unviable projects and rank profitable ones
Multiple Choice Single Answer
Question Examples of hedge are:
Correct Answer Buy when you are having short position
Your Answer Buy when you are having short position
Multiple Choice Multiple Answer
Question What is the effect of cross currency option on the customer?
Correct Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies
Your Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies
Select The Blank
Question Forward margin makes a currency cheaper then the currency is at ________.
Correct Answer Discount
Your Answer Discount
Multiple Choice Single Answer
Question Why does a person need protection from unfavourable movement of exchange rate?
Correct Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit
Your Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit
Multiple Choice Single Answer
Question The capital market is said to be volatile when
Correct Answer Prices of capital market instruments change and are expected to change drastically
Your Answer Prices of capital market instruments change and are expected to change drastically
True/False
Question JV means Joint venture and WOS means World of Security.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What is the criteria for an Indian Company for Direct Investment abroad?
Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent
Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed
Multiple Choice Multiple Answer
Question What does the word '"Tombstone" stand for?
Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
True/False
Question Out of 15 member countries in European Union 12 countries commiteed themselves for a single currency.
Correct Answer False
Your Answer False
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 False
Select The Blank
Question A Credit can be a confirmed credit only if it is also ________.
Correct Answer An Irrevocable credit
Your Answer An Irrevocable credit
Match The Following
Question Correct Answer Your Answer
Intolerable risk Drop the investment project Drop the investment project
Country risk analysis Cost of evluation does not justify analysis Cost of evluation does not justify analysis
Stock market analysis Banks are ahead Banks are ahead
Weightages % Factors' values Factors' values
Select The Blank
Question Over the years ________has been the most widely accepted currency in international capital market.
Correct Answer American Dollar
Your Answer American Dollar
Multiple Choice Single Answer
Question What is the meaning of a country risk?
Correct Answer Risk of events in a particular country which may cause loss to a person dealing with that country
Your Answer Risk of events in a particular country which may cause loss to a person dealing with that country
Multiple Choice Multiple Answer
Question Which common details will be available in any bill of Lading?
Correct Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment
Your Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment
Multiple Choice Single Answer
Question What help does EXIM Bank provide under the scheme 'Direct Financial assistance to exporters'?
Correct Answer Funds are provided under deferred payment terms to Indian exporter for credit to foreign buyer
Your Answer Funds are provided under deferred payment terms to Indian exporter for credit to foreign buyer
Match The Following
Question Correct Answer Your Answer
PP Form Export Declaration form Export Declaration form
Health Certificate Fumigation certificate Fumigation certificate
Certificate of Inspection As per importers requirement As per importers requirement
Certifiate of Origin Export Promotion Council Export Promotion Council
Select The Blank
Question Even after liberalisation of exchange controls, the Euro sterling market remained volatile because of uncertainties in UK and gyrations of sterling against major ________ countries
Correct Answer OECD
Your Answer OECD
Multiple Choice Single Answer
Question How many INCOTERMS are there in "Departure" Group?
Correct Answer One
Your Answer Two
Multiple Choice Single Answer
Question What is a bill of lading?
Correct Answer Transport document representing movement of goods by water.
Your Answer Transport document representing movement of goods by water.
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
Select The Blank
Question The creditworthiness of the futures seller and the futures buyer is ________ because of the presence of the Futures exchange.
Correct Answer Irrelevant
Your Answer Irrelevant
Multiple Choice Single Answer
Question What was the collective assessment of International financial market about the country risk of many cnuntries in the last decade?
Correct Answer Whatever it was, was disastrously wrong.
Your Answer Whatever it was, was disastrously wrong.
Multiple Choice Multiple Answer
Question How is the entry into any conuntry's money market or capital market is restricted?
Correct Answer Because of different tax systems , Because of different credit standards
Your Answer Because of different tax systems , Because of different credit standards
True/False
Question Till August 1994 India was following the Indirect Methodof Rate quotation.
Correct Answer False
Your Answer True
Select The Blank
Question In Indian interbank market forward rates are generally quoted on the basis of ________.
Correct Answer Calendar month
Your Answer Calendar month
Select The Blank
Question Rupee was liberalised on ________ account in 1993, and on current account in 1994.
Correct Answer Trade
Your Answer Trade
Multiple Choice Single Answer
Question Under which category of exchange rate did the Indian Rupee came from June 92?
Correct Answer Other managed Floating
Your Answer Other managed Floating
Multiple Choice Multiple Answer
Question Which of these are considered as miscellaneous documents?
Correct Answer Packing list , Weight certificate
Your Answer Packing list , Weight certificate
True/False
Question Funding Options in domestic yen market are Futures, FRAs, Call and put options.
Correct Answer True
Your Answer True
Select The Blank
Question ECGC provides cover to an Indian contractor for construction work abroad under ________.
Correct Answer Construction works policy
Your Answer Construction works policy
Multiple Choice Single Answer
Question Equity can be raised internationallly by a company through :-
Correct Answer Fund raising, underwriting, hedging , arbitration operations
Your Answer Fund raising, underwriting, hedging , arbitration operations
Multiple Choice Single Answer
Question How many Countries participated in the third survey on Foreign Exchange, coordinated by BIS in 1992?
Correct Answer 26
Your Answer 26
True/False
Question In red clause credit some clauses are printed in Red ink.
Correct Answer True
Your Answer True
True/False
Question Prior approval of RBI is needed for payment of all imports.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question The factors which affect the performance of an option are:-
Correct Answer Underlying asset price , Time before expiration, rate of interest
Your Answer Underlying asset price , Time before expiration, rate of interest
Multiple Choice Single Answer
Question What is the immediate cause for the growth of futures and options in the last two decades?
Correct Answer Increase in volatile trading conditions
Your Answer Management of external risk
Select The Blank
Question For setting up joint ventures abroad or equity participation abroad, EXIM bank provides funds under ________ Scheme.
Correct Answer Overseas investment facility
Your Answer Overseas investment facility
Select The Blank
Question To make the export more competitive and remunerative, the Indian Govt extends ________ facility.
Correct Answer Cash Incentives
Your Answer Advance against cash incentives
Multiple Choice Multiple Answer
Question What is the criteria for an Indian Company for Direct Investment abroad?
Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent
Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent
Multiple Choice Multiple Answer
Question External Commercial Debt market :-
Correct Answer Prevails in Domestic market of foreign country , Prevails in offshore markets
Your Answer Prevails in Domestic market of foreign country , Prevails in offshore markets
Multiple Choice Single Answer
Question Financial management is complex process for
Correct Answer Companies which have international trade
Your Answer Companies which have international trade
Multiple Choice Multiple Answer
Question What do you understand by 'Foreign Exchange Risk'?
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
Multiple Choice Single Answer
Question For a spot transaction carried out on Tuesday, where both centers have holiday on Wednesday, currencies will be exchanged on :-
Correct Answer Thursday if it is a working day at both the centers
Your Answer Friday
Multiple Choice Single Answer
Question Which details about forward contracts do the Exchange Controls verify ?
Correct Answer Particulars of cancellation of forward cover for the equivalent of USD 500,000
Your Answer Particulars of cancellation of forward cover for the equivalent of USD 500,000
True/False
Question In the forward rate quotations between two currencies, when one currency is at discount the other currency is at premium.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Internationally only those currencies are in demand
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
Select The Blank
Question A Bill of exchange payable 45 days from date of shipment, is a means of ________ from seller to the buyer.
Correct Answer Credit
Your Answer Credit
Multiple Choice Single Answer
Question What Preshipment facility is granted by EXIM Bank to an exporter?
Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad
Your Answer Preshipment credit beyond six months for construction and turnkey projects abroad
Select The Blank
Question Global capital market can be understood from the study of ________.
Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
True/False
Question Import finance is nomally available at rates of interest cheaper than domestic finance rates.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question Major investors in NIF are :-
Correct Answer Commercial Banks , Non banking Finance companies , Insurance Companies
Your Answer Commercial Banks , Non banking Finance companies
Select The Blank
Question In mid 1992 ________ rejected the ratification of Maastricht treaty
Correct Answer Denmark
Your Answer Denmark
True/False
Question Indian companies are now allowed to freely invest abroad up to $1.5 million, raised through GDE or EEFC without prior permission from RBI.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question What schemes have been floated by RBI for facilitating Inter bank transactions?
Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market
Your Answer Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates
Select The Blank
Question ________ is the agency of ICC which deals with the maritime crime.
Correct Answer International Maritime Bureau
Your Answer International Maritime Bureau
Multiple Choice Single Answer
Question Which of them are special funding facilities of IMF ?
Correct Answer Buffer Stock Facility
Your Answer Buffer Stock Facility
True/False
Question Cross currency forward contract is not meaningful if original contract is in Rupees to USD
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What does a speculator accept while dealing with an option?
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
Multiple Choice Single Answer
Question Which is the most actively traded currency in the international market today?
Correct Answer US Dollar
Your Answer US Dollar
Match The Following
Question Correct Answer Your Answer
Intolerable risk Drop the investment project Drop the investment project
Country risk analysis Cost of evluation does not justify analysis Cost of evluation does not justify analysis
Stock market analysis Banks are ahead Factors' values
Weightages % Factors' values 100% of total
Select The Blank
Question Global capital market can be understood from the study of ________.
Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Multiple Choice Single Answer
Question For a spot transaction carried out on Thursday, currencies will be exchanged on :-
Correct Answer Monday
Your Answer Monday
Multiple Choice Single Answer
Question Under which category of exchange rate did the Indian Rupee came from June 92?
Correct Answer Other managed Floating
Your Answer Pegged to Single currency
Match The Following
Question Correct Answer Your Answer
Maturity of future Time when actual commodity is delivered Last date of exercising option
Note issuance facility Euronotes Euronotes
Bearer security issued in currency other than that of the country of issue Eurobonds Eurobonds
Margin on future Peformance bond or security deposit Peformance bond or security deposit
True/False
Question Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument.
Correct Answer False
Your Answer False
True/False
Question The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What are margins, with reference to futures market?
Correct Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts
Your Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts
Multiple Choice Single Answer
Question What is the volume of the world's average daily transactions in foreign exchange?
Correct Answer USD 1 trillion
Your Answer USD 1 trillion
Multiple Choice Single Answer
Question NIF is basically an agreement :-
Correct Answer By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers
Your Answer Which enables the investor to market the same in the secondary market
Multiple Choice Single Answer
Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992?
Correct Answer USD 275 Billion
Your Answer USD 275 Billion
Multiple Choice Single Answer
Question What Preshipment facility is granted by EXIM Bank to an exporter?
Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad
Your Answer Preshipment credit up to six months for construction and turnkey projects abroad
Select The Blank
Question Over the years ________has been the most widely accepted currency in international capital market.
Correct Answer American Dollar
Your Answer American Dollar
Select The Blank
Question As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily.
Correct Answer Economies
Your Answer Currencies
Multiple Choice Single Answer
Question Which currency is traded in one leg of about 70% of the world's transactions?
Correct Answer US Dollar
Your Answer US Dollar
Select The Blank
Question ________ is the acid test for events to be included in country risk.
Correct Answer Control by Government'
Your Answer Recurrence
Select The Blank
Question The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________.
Correct Answer Brussels
Your Answer Brussels
Multiple Choice Single Answer
Question What is Risk Syndication facility?
Correct Answer Sharing of risk of non payment by supplier
Your Answer Sharing risk of Non payment by the Syndicate of Banks giving loans
True/False
Question If ERD > IRD hen exporter should availa Rupee finance
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The characteristics of an International documentary credit are :-
Correct Answer It 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 Answer It 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
Multiple Choice Multiple Answer
Question Which debits are permitted to EEFC accounts?
Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
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 There is no difference between CIP and CIF contracts except the mode of transportation.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Financial management is complex process for
Correct Answer Companies which have international trade
Your Answer Companies which have international trade
Select The Blank
Question When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________.
Correct Answer Core activity
Your Answer Primary activity
Select The Blank
Question A Credit can be a confirmed credit only if it is also ________.
Correct Answer An Irrevocable credit
Your Answer An Irrevocable credit
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 False
Multiple Choice Single Answer
Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs?
Correct Answer USD 1=Rs 50.5000
Your Answer USD 1=Rs 50.5000
Multiple Choice Multiple Answer
Question Export finance
Correct Answer Preshipment credit , Post shipment credit , Duty Draw back
Your Answer Preshipment credit , Post shipment credit , Buyers credit
Multiple Choice Multiple Answer
Question Internationally only those currencies are in demand
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
Multiple Choice Multiple Answer
Question What are the functions of Asian Development Bank?
Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Multiple Choice Multiple Answer
Question What does the word '"Tombstone" stand for?
Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Select The Blank
Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________.
Correct Answer Euro Commercial Papers
Your Answer Euro Commercial Papers
Multiple Choice Single Answer
Question Why are various methods of financial analysis used for assessing a cross border project ?
Correct Answer To weed out unviable projects and rank profitable ones
Your Answer To weed out unviable projects and rank profitable ones
Multiple Choice Single Answer
Question Examples of hedge are:
Correct Answer Buy when you are having short position
Your Answer Buy when you are having short position
Multiple Choice Multiple Answer
Question What is the effect of cross currency option on the customer?
Correct Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies
Your Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies
Select The Blank
Question Forward margin makes a currency cheaper then the currency is at ________.
Correct Answer Discount
Your Answer Discount
Multiple Choice Single Answer
Question Why does a person need protection from unfavourable movement of exchange rate?
Correct Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit
Your Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit
Multiple Choice Single Answer
Question The capital market is said to be volatile when
Correct Answer Prices of capital market instruments change and are expected to change drastically
Your Answer Prices of capital market instruments change and are expected to change drastically
True/False
Question JV means Joint venture and WOS means World of Security.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What is the criteria for an Indian Company for Direct Investment abroad?
Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent
Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question Which functions does the Bill of Lading serve?
Correct Answer It is a document of title to goods., It is receipt of goods
Your Answer It is a document of title to goods. ,It is receipt of goods
Multiple Choice Single Answer
Question A Bank quotes interest rate of 9.50/10.00for six months dollar deposit, here the bid rate is :-
Correct Answer 9.50% P.A.
Your Answer 9.50% P.A.
Multiple Choice Single Answer
Question What is Sovereign Risk?
Correct Answer Risk of lending to the governmentof a country
Your Answer Risk of lending to the government of acountry
Multiple Choice Single Answer
Question How does ICC help poor countries?
Correct Answer Attract Foreign Direct investments togeather with UNCTAD
Your Answer Attract Foreign Direct investments togeather with UNCTAD
Multiple Choice Multiple Answer
Question As per BIS, recovery from the recent crisis in global capital market was mainly due to
Correct Answer Rapid and appropriate policy response in US and other countries , Increase in
Foreign Direct Investments , free flow of credit
Your Answer Rapid and appropriate policy response in US and other countries , Increase in Foreign DirectInvestments , free flow of credit
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
Select The Blank
Question EEFC account holder is allowed to have ________ facility.
Correct Answer Cheque book and nomination
Your Answer Credit card, safe custody, safe deposit locker without any fee
Select The Blank
Question Fixed interest rate Eurobond without the option to convert to equity is known as ________.
Correct Answer Straight Debt
Your Answer Interest rate swap
True/False
Question An Indian importing goods from USA pays dollars in India.
Correct Answer False
Your Answer True
Match The Following
Question Correct Answer Your Answer
PP Form Export Declaration form Export Declaration form
Health Certificate Fumigation certificate Export Declaration form
Certificate of Inspection As per importers requirement Export Declaration form
Certifiate of Origin Export Promotion Council Export Declaration form
Multiple Choice Multiple Answer
Question For issuing a Documentary credit The applicant is required to provide to the issuing bank
details about
Correct Answer 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 Answer The purchase-sales contract, the mode of payment, the tenor of payment , The track record of the buyer and seller
Multiple Choice Multiple Answer
Question The characteristics of an International documentary credit are :-
Correct Answer It 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 Answer It is an undertaking given on behalf of a certain person to another person in different
country , It is a stamped agreement and is not valid unless it is signed by the issuer
True/False
Question CFR = FOB plus freight paid by seller + insurance paid by seller.
Correct Answer False
Your Answer True
Select The Blank
Question Even after liberalization of exchange controls, the Euro sterling market remained volatile
because of uncertainties in UK and gyrations of sterling against major ________ countries
Correct Answer OECD
Your Answer OPEC
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
Multiple Choice Single Answer
Question Which of them are special funding facilities of IMF ?
Correct Answer Buffer Stock Facility
Your Answer Supplemental Reserve Policy
Multiple Choice Multiple Answer
Question What are the sources of raising funds for exports?
Correct Answer Suppliers credit , Forfaiting
Your Answer Suppliers credit , Forfaiting , Buyers credit , Foreign currency or Rupee finance
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
Select The Blank
Question A ________ Bill of lading does not specify the terms and conditions of carriage.
Correct Answer Short Form
Your Answer Short Form
Multiple Choice Single Answer
Question What is the volume of the world's total speculative transactions?
Correct Answer Roughly 90 % of the total turnover
Your Answer 70% of the total turnover
True/False
Question Till August 1994 India was following the Indirect Methodof Rate quotation.
Correct Answer False
Your Answer False
Select The Blank
Question For setting up joint ventures abroad or equity participation abroad, EXIM bank provides funds
under ________ Scheme.
Correct Answer Overseas investment facility
Your Answer Overseas investment facility
Multiple Choice Single Answer
Question Mr P has exported goods in May 2005 and is expecting payment of Euro 25000 by the last week of Sept 2005. Give details of the forward contract he can
book :-
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.
Select The Blank
Question In US Capital Market a Company prepares all the necessary documents in advance of the public issue under the facility known as ________.
Correct Answer Shelf Registration
Your Answer Shell Registration
Multiple Choice Multiple Answer
Question Which common details will be available in any bill of Lading?
Correct Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment
Your Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment ,
The name of the vessel , The date of transportation and contract of transportation
Select The Blank
Question Under the ________ standard the Country's Central Bank promised to buy back the currency at certain rate of Gold.
Correct Answer Gold
Your Answer Interest
Select The Blank
Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________.
Correct Answer Euro Commercial Papers
Your Answer ADRs
Select The Blank
Question The type of trade where a country sells orange juice in return for cars is known as ________.
Correct Answer Counter Trade
Your Answer Non money trade
Multiple Choice Multiple Answer
Question Which debits are permitted to EEFC accounts?
Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad ,
Payment to EOUs in India for services rendered by them
Your Answer Payment to EOUs in India for services rendered by them , Payment of Gifts of GBP 5000 per year per donor
Multiple Choice Multiple Answer
Question Under the liberalisation through FEMA, what can an AD offer to the clients, without the prior
permission of RBI or Government?
Correct Answer Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate
agreements
Your Answer Caps and collars, and forward rate agreements , Good and competitive exchange rates and cross currency rates
Multiple Choice Multiple Answer
Question Sterling Market is attractive for an international investor because
Correct Answer Gilts offer higher attractive margin , Choice of issuing medium term and long term
bonds
Your Answer Choice of issuing medium term and long term bonds , Less controls and less formalities to be completed , Linking of issues to currency swaps
Multiple Choice Single Answer
Question Under which contracts the seller pays the import duty for the buyer?
Correct Answer DDP
Your Answer DDP
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
Multiple Choice Multiple Answer
Question What were the immediate causes of converting the group of 5 into group of 7 and convene
their meeting in late 1985?
Correct Answer Many Industries in USA had become uncompetitive with imports , In USA the Trade
protectionnism had increased
Your Answer Many Industries in USA had become uncompetitive with imports , In USA the Trade
protectionnism had increased , The heads of G5 insisted to have a meeting , Failure of IMF to control
the exchange rates
Multiple Choice Single Answer
Question What are the powers of money changers?
Correct Answer Purchase and sell foreign currency notes and travellers cheques
Your Answer Purchase and sell foreign currency notes and travellers cheques, give import and export
finance
Multiple Choice Single Answer
Question Who can open an EEFC account?
Correct Answer Individuals , firms, companies, resident in India
Your Answer Individuals , firms, companies, resident in India
Multiple Choice Single Answer
Question What is the role of ICC towards WTO?
Correct Answer To provide world business recommendations to WTO
Your Answer To further the cause of WTO
Match The Following
Question Correct Answer Your Answer
-Swap price Difference in prices of two legs of buying and selling Quoting rate for both buying and selling a currency
-Euro Market Market in Euro currencies Market in Euro currencies
-Making market Quoting rate for both buying and sellinga currency Difference in prices of two legs of buying and selling
-Spread Price difference between bid and offer Maket of 'Euro'
Select The Blank
Question Position in a currency is said to be ________, when sales equal purchases.
Correct Answer Square
Your Answer Awkward
Select The Blank
Question Hotels and Airline companies are allowed to receive payments in Indian rupees from foreign
tourist without insisiting on ________.
Correct Answer Encashment certificate
Your Answer Encashment certificate
Multiple Choice Multiple Answer
Question Why is Bill of Exchange a Quasi Negotiable Instrument?
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 Transportation act , It is issued under
Bill of exchange act
Multiple Choice Single Answer
Question Which details about forward contracts do the Exchange Controls verify ?
Correct Answer Particulars of cancellation of forward cover for the equivalent of USD 500,000
Your Answer Details of all contracts booked and cancelled beyond a specified limit
Multiple Choice Single Answer
Question In the context of International economy ,the period between 1920s and 1930s is known as
Correct Answer Great Depression
Your Answer Great Depression
Multiple Choice Multiple Answer
Question What do you understand by Commercial Risk?
Correct Answer Protracted default by the buyer, Insolvency of the buyer
Your Answer Protracted default by the buyer, Insolvency of the buyer
Multiple Choice Multiple Answer
Question What schemes have been floated by RBI for facilitating Inter bank transactions?
Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market
Your Answer Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates
Select The Blank
Question ________ is the agency of ICC which deals with the maritime crime.
Correct Answer International Maritime Bureau
Your Answer International Maritime Bureau
Multiple Choice Single Answer
Question Which of them are special funding facilities of IMF ?
Correct Answer Buffer Stock Facility
Your Answer Buffer Stock Facility
True/False
Question Cross currency forward contract is not meaningful if original contract is in Rupees to USD
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What does a speculator accept while dealing with an option?
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
Multiple Choice Single Answer
Question Which is the most actively traded currency in the international market today?
Correct Answer US Dollar
Your Answer US Dollar
Match The Following
Question Correct Answer Your Answer
Intolerable risk Drop the investment project Drop the investment project
Country risk analysis Cost of evluation does not justify analysis Cost of evluation does not justify analysis
Stock market analysis Banks are ahead Factors' values
Weightages % Factors' values 100% of total
Select The Blank
Question Global capital market can be understood from the study of ________.
Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Multiple Choice Single Answer
Question For a spot transaction carried out on Thursday, currencies will be exchanged on :-
Correct Answer Monday
Your Answer Monday
Multiple Choice Single Answer
Question Under which category of exchange rate did the Indian Rupee came from June 92?
Correct Answer Other managed Floating
Your Answer Pegged to Single currency
Match The Following
Question Correct Answer Your Answer
Maturity of future Time when actual commodity is delivered Last date of exercising option
Note issuance facility Euronotes Euronotes
Bearer security issued in currency other than that of the country of issue Eurobonds Eurobonds
Margin on future Peformance bond or security deposit Peformance bond or security deposit
True/False
Question Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument.
Correct Answer False
Your Answer False
True/False
Question The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What are margins, with reference to futures market?
Correct Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts
Your Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts
Multiple Choice Single Answer
Question What is the volume of the world's average daily transactions in foreign exchange?
Correct Answer USD 1 trillion
Your Answer USD 1 trillion
Multiple Choice Single Answer
Question NIF is basically an agreement :-
Correct Answer By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers
Your Answer Which enables the investor to market the same in the secondary market
Multiple Choice Single Answer
Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992?
Correct Answer USD 275 Billion
Your Answer USD 275 Billion
Multiple Choice Single Answer
Question What Preshipment facility is granted by EXIM Bank to an exporter?
Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad
Your Answer Preshipment credit up to six months for construction and turnkey projects abroad
Select The Blank
Question Over the years ________has been the most widely accepted currency in international capital market.
Correct Answer American Dollar
Your Answer American Dollar
Select The Blank
Question As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily.
Correct Answer Economies
Your Answer Currencies
Multiple Choice Single Answer
Question Which currency is traded in one leg of about 70% of the world's transactions?
Correct Answer US Dollar
Your Answer US Dollar
Select The Blank
Question ________ is the acid test for events to be included in country risk.
Correct Answer Control by Government'
Your Answer Recurrence
Select The Blank
Question The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________.
Correct Answer Brussels
Your Answer Brussels
Multiple Choice Single Answer
Question What is Risk Syndication facility?
Correct Answer Sharing of risk of non payment by supplier
Your Answer Sharing risk of Non payment by the Syndicate of Banks giving loans
True/False
Question If ERD > IRD hen exporter should availa Rupee finance
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The characteristics of an International documentary credit are :-
Correct Answer It 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 Answer It 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
Multiple Choice Multiple Answer
Question Which debits are permitted to EEFC accounts?
Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
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 There is no difference between CIP and CIF contracts except the mode of transportation.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Financial management is complex process for
Correct Answer Companies which have international trade
Your Answer Companies which have international trade
Select The Blank
Question When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________.
Correct Answer Core activity
Your Answer Primary activity
Select The Blank
Question A Credit can be a confirmed credit only if it is also ________.
Correct Answer An Irrevocable credit
Your Answer An Irrevocable credit
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 False
Multiple Choice Single Answer
Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs?
Correct Answer USD 1=Rs 50.5000
Your Answer USD 1=Rs 50.5000
Multiple Choice Multiple Answer
Question Export finance
Correct Answer Preshipment credit , Post shipment credit , Duty Draw back
Your Answer Preshipment credit , Post shipment credit , Buyers credit
Multiple Choice Multiple Answer
Question Internationally only those currencies are in demand
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
Multiple Choice Multiple Answer
Question What are the functions of Asian Development Bank?
Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Multiple Choice Multiple Answer
Question What does the word '"Tombstone" stand for?
Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Select The Blank
Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________.
Correct Answer Euro Commercial Papers
Your Answer Euro Commercial Papers
Multiple Choice Single Answer
Question Why are various methods of financial analysis used for assessing a cross border project ?
Correct Answer To weed out unviable projects and rank profitable ones
Your Answer To weed out unviable projects and rank profitable ones
Multiple Choice Single Answer
Question Examples of hedge are:
Correct Answer Buy when you are having short position
Your Answer Buy when you are having short position
Multiple Choice Multiple Answer
Question What is the effect of cross currency option on the customer?
Correct Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies
Your Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies
Select The Blank
Question Forward margin makes a currency cheaper then the currency is at ________.
Correct Answer Discount
Your Answer Discount
Multiple Choice Single Answer
Question Why does a person need protection from unfavourable movement of exchange rate?
Correct Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit
Your Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit
Multiple Choice Single Answer
Question The capital market is said to be volatile when
Correct Answer Prices of capital market instruments change and are expected to change drastically
Your Answer Prices of capital market instruments change and are expected to change drastically
True/False
Question JV means Joint venture and WOS means World of Security.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What is the criteria for an Indian Company for Direct Investment abroad?
Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent
Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed
International Finance assgn 01_VSuneetha
Multiple Choice Multiple Answer
Question What schemes have been floated by RBI for facilitating Inter bank transactions?
Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market
Your Answer Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates
Select The Blank
Question ________ is the agency of ICC which deals with the maritime crime.
Correct Answer International Maritime Bureau
Your Answer International Maritime Bureau
Multiple Choice Single Answer
Question Which of them are special funding facilities of IMF ?
Correct Answer Buffer Stock Facility
Your Answer Buffer Stock Facility
True/False
Question Cross currency forward contract is not meaningful if original contract is in Rupees to USD
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What does a speculator accept while dealing with an option?
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
Multiple Choice Single Answer
Question Which is the most actively traded currency in the international market today?
Correct Answer US Dollar
Your Answer US Dollar
Match The Following
Question Correct Answer Your Answer
Intolerable risk Drop the investment project Drop the investment project
Country risk analysis Cost of evluation does not justify analysis Cost of evluation does not justify analysis
Stock market analysis Banks are ahead Factors' values
Weightages % Factors' values 100% of total
Select The Blank
Question Global capital market can be understood from the study of ________.
Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Multiple Choice Single Answer
Question For a spot transaction carried out on Thursday, currencies will be exchanged on :-
Correct Answer Monday
Your Answer Monday
Multiple Choice Single Answer
Question Under which category of exchange rate did the Indian Rupee came from June 92?
Correct Answer Other managed Floating
Your Answer Pegged to Single currency
Match The Following
Question Correct Answer Your Answer
Maturity of future Time when actual commodity is delivered Last date of exercising option
Note issuance facility Euronotes Euronotes
Bearer security issued in currency other than that of the country of issue Eurobonds Eurobonds
Margin on future Peformance bond or security deposit Peformance bond or security deposit
True/False
Question Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument.
Correct Answer False
Your Answer False
True/False
Question The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What are margins, with reference to futures market?
Correct Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts
Your Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts
Multiple Choice Single Answer
Question What is the volume of the world's average daily transactions in foreign exchange?
Correct Answer USD 1 trillion
Your Answer USD 1 trillion
Multiple Choice Single Answer
Question NIF is basically an agreement :-
Correct Answer By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers
Your Answer Which enables the investor to market the same in the secondary market
Multiple Choice Single Answer
Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992?
Correct Answer USD 275 Billion
Your Answer USD 275 Billion
Multiple Choice Single Answer
Question What Preshipment facility is granted by EXIM Bank to an exporter?
Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad
Your Answer Preshipment credit up to six months for construction and turnkey projects abroad
Select The Blank
Question Over the years ________has been the most widely accepted currency in international capital market.
Correct Answer American Dollar
Your Answer American Dollar
Select The Blank
Question As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily.
Correct Answer Economies
Your Answer Currencies
Multiple Choice Single Answer
Question Which currency is traded in one leg of about 70% of the world's transactions?
Correct Answer US Dollar
Your Answer US Dollar
Select The Blank
Question ________ is the acid test for events to be included in country risk.
Correct Answer Control by Government'
Your Answer Recurrence
Select The Blank
Question The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________.
Correct Answer Brussels
Your Answer Brussels
Multiple Choice Single Answer
Question What is Risk Syndication facility?
Correct Answer Sharing of risk of non payment by supplier
Your Answer Sharing risk of Non payment by the Syndicate of Banks giving loans
True/False
Question If ERD > IRD hen exporter should availa Rupee finance
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The characteristics of an International documentary credit are :-
Correct Answer It 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 Answer It 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
Multiple Choice Multiple Answer
Question Which debits are permitted to EEFC accounts?
Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
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 There is no difference between CIP and CIF contracts except the mode of transportation.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Financial management is complex process for
Correct Answer Companies which have international trade
Your Answer Companies which have international trade
Select The Blank
Question When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________.
Correct Answer Core activity
Your Answer Primary activity
Select The Blank
Question A Credit can be a confirmed credit only if it is also ________.
Correct Answer An Irrevocable credit
Your Answer An Irrevocable credit
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 False
Multiple Choice Single Answer
Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs?
Correct Answer USD 1=Rs 50.5000
Your Answer USD 1=Rs 50.5000
Multiple Choice Multiple Answer
Question Export finance
Correct Answer Preshipment credit , Post shipment credit , Duty Draw back
Your Answer Preshipment credit , Post shipment credit , Buyers credit
Multiple Choice Multiple Answer
Question Internationally only those currencies are in demand
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
Multiple Choice Multiple Answer
Question What are the functions of Asian Development Bank?
Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Multiple Choice Multiple Answer
Question What does the word '"Tombstone" stand for?
Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Select The Blank
Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________.
Correct Answer Euro Commercial Papers
Your Answer Euro Commercial Papers
Multiple Choice Single Answer
Question Why are various methods of financial analysis used for assessing a cross border project ?
Correct Answer To weed out unviable projects and rank profitable ones
Your Answer To weed out unviable projects and rank profitable ones
Multiple Choice Single Answer
Question Examples of hedge are:
Correct Answer Buy when you are having short position
Your Answer Buy when you are having short position
Multiple Choice Multiple Answer
Question What is the effect of cross currency option on the customer?
Correct Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies
Your Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies
Select The Blank
Question Forward margin makes a currency cheaper then the currency is at ________.
Correct Answer Discount
Your Answer Discount
Multiple Choice Single Answer
Question Why does a person need protection from unfavourable movement of exchange rate?
Correct Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit
Your Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit
Multiple Choice Single Answer
Question The capital market is said to be volatile when
Correct Answer Prices of capital market instruments change and are expected to change drastically
Your Answer Prices of capital market instruments change and are expected to change drastically
True/False
Question JV means Joint venture and WOS means World of Security.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What is the criteria for an Indian Company for Direct Investment abroad?
Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent
Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed
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Chapter – 1 – Introduction to international capital markets 1
Ero currency market ; Domestic market ; US, Japan Switzerland ; uk, australia canada ; european conters in ECU ; Euro ; Asian doller market ; forex marker 1
SDR ; ECU ; US dollar ; German ; Swiss ; Japanees ; France ; Canada ; Australia; 2
Chaper - 2 - International financial Markets - The U.S.Dollar Market ; pricing ; federal reservice board; curency ; central bank of US ; 5
The Japanese Yen Market ; Mof; Long Term Prime Rate ; 1970 japanese 6
The Sterling Market ; 20th 19th century 1979 ; OECD Organization for economic co-operation & development EMS Exchange rate Mechanism; FRN ; Bulldog; 7
the EURO Market has been discussed in the nex chapter Recent development in international financial markets ; septer 11 enron 7
LtCN (Long term capital Management Brazil china and mexico; 8
1990 ; 1980 ; severe tests financial system; securitization forces banks ; attractive to browwerw; legal issues flexibility ; financial market development segement of ; 9
swaps cash flow ; roject related; gain access to international ; marketability ; new financing techniques; 10
Chapter – 3 – International Monetary and Financial System 13
1945 ; 1944 ; intenrational world Bank for reconstruciton and development; second world war was european ; IMF International Monetary Fund; Gold standard first world war 13
The country's Central Bank agreed to buy back their currency at a certain rate of gold; 13
melting down of gold was freely allowed 13
There was unrestricted movement of gold (I.e. import and / export 14
The total money supply in the country was determined by the quantum of gold reserves in the country 14
1870 ; 1914 ; 1821 ; 1834 ; 1870 ; European countries gold standard in 1933 ; 1930 International Monetary Co-operation ; IBRD ; IMF ; 14
popularly known as world bank IMF ; the international monetary fund 1945 ; 1971 ; 25 years ; aims 15
SDR ((special drawing rights ) 25% 1960 ; 1963 ; Gross domestic product; 5 years ; SDR 146 bn to SDR 212 ; 45% ; 1998 ; Two parts 16
Funding Facilities ; Regular Facilities ; Special facilities ; restore tranche credit tranche ; compensatory and contingency financing facility (CCFF) ; 16
Extended arrangement (Extended Fund Facility EEF) ; Buffer stock Financing Facility ; 16
Standard Arrangement (Enlarged Arrears Policy ) ; Supplemental Reserve Policy (Supplemental Reserve Policy (SRP 17
Reserve Tranche ; Credit Tranches ; Stand - By Arrangement 17
Extended arrangement or extended fund facilities (EFF) 18
Special Facilities ; CCFF ; Buffer Stock Financing Facility ; BSFF ; Supplemental Resource Facility (SRF) ; 1997 18
Enhance Structural Adjustment Facility (ESAF) ; The fixed exchange rate system US dollars 35 ounce of gold 19
Problem faced by the fixed exchange rate system ; 1960 ; value apprehension ; delay in adjustment 20
failure of fixed rate system ; the european monetary system (EMS) European Community 20
Currency Snake ; 1973 ; EMS EC ECU European Currency Unit ; SDR ; ERM ; DM ; matrix german bundesbank 21
EM ; PST ; ERM ; Economic and monetary Union ;
Top of Form
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
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 JV means Joint venture and WOS means World of Security.
Correct Answer False
Your Answer False
Select The Blank
Question The rate of interest on rupee finance for exports is not exceeding ________ less than PLR.
Correct Answer 0.025
Your Answer 50 basis points over LIBOR
Multiple Choice Multiple Answer
Question What does a speculator accept while dealing with an option?
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
Multiple Choice Single Answer
Question In the syndicated loan arrangement the borrower has to execute :-
Correct Answer Single Principal loan agreement
Your Answer Single Principal loan agreement
True/False
Question At Least one principal Lender bank is essential for issue of the ADR or GDR.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question US financial system is the freest system because
Correct Answer Institutions can introduce new products and instuments at the price of their choice.
Your Answer Institutions can introduce new products and instuments at the price of their choice.
Multiple Choice Single Answer
Question In a coupon swap who is called the buyer?
Correct Answer One who pays the fixed rate of interest
Your Answer One who pays the fixed rate of interest
True/False
Question Till August 1994 India was following the Indirect Methodof Rate quotation.
Correct Answer False
Your Answer False
Select The Blank
Question For setting up joint ventures abroad or equity participation abroad, EXIM bank provides funds under ________ Scheme.
Correct Answer Overseas investment facility
Your Answer Overseas investment facility
Multiple Choice Single Answer
Question Under the automatic route of Direct Investment Abroad, what is the restriction on market purchases?
Correct Answer 50% of the net worth of the investing company
Your Answer 50% of the net worth of the investing company
Multiple Choice Single Answer
Question What are the powers of money changers?
Correct Answer Purchase and sell foreign currency notes and travellers cheques
Your Answer Purchase and sell foreign currency notes and travellers cheques and also Give export finance
Select The Blank
Question Any company involved in foreign exchange transactions is exposed to ________ risk.
Correct Answer Currency
Your Answer Currency
Multiple Choice Multiple Answer
Question What are the features of Settlement price ?
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
Multiple Choice Multiple Answer
Question What are the activities of ICC?
Correct Answer Aribtration and dispute resolving , Canvass for open trade combat commercial crime
Your Answer Aribtration and dispute resolving , Canvass for open trade combat commercial crime , Increased Govt regulation of Business
True/False
Question Cause of increase in cost of public issues Underwriting fees , selling commission
Correct Answer True
Your Answer False
Select The Blank
Question The currency swaps used ________.
Correct Answer To lower the risk of currency exposure
Your Answer To lower the risk of currency exposure
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
Multiple Choice Multiple Answer
Question Which factors affect the exchange rates in short time period?
Correct Answer Demand and supply, interest rates, inflation, , Sentiment, Speculation
Your Answer Demand and supply, interest rates, inflation, , Sentiment, Speculation , GDP,Balance of trade and payment,Unemployment
Match The Following
Question Correct Answer Your Answer
Departure EXW EXW
Main carriage paid CFR CFR
Main carriage unpaid FAS FAS
Arrival DES DES
Multiple Choice Multiple Answer
Question Sterling Market is attractive for an international investor because
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 In red clause credit some clauses are printed in Red ink.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
Question Which debits are permitted to EEFC accounts?
Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
Multiple Choice Single Answer
Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the bid rate for USD?
Correct Answer USD 1=Rs 50.5000
Your Answer USD 1=Rs 50.5000
Multiple Choice Single Answer
Question Why are various methods of financial analysis used for assessing a cross border project ?
Correct Answer To weed out unviable projects and rank profitable ones
Your Answer To weed out unviable projects and rank profitable ones
Multiple Choice Multiple Answer
Question Criteria for investment abroad under automatic route :-
Correct Answer Activity for investment is core activity of Indian Company. , Total Financial commitment in JV/WOS as per prescribed ceiling
Your Answer Activity for investment is core activity of Indian Company. , Total Financial commitment in JV/WOS as per prescribed ceiling
Multiple Choice Multiple Answer
Question Who can issue the Certificate of Inspection?
Correct Answer Export Inspection Council , Person authorised by Importer.
Your Answer Export Inspection Council , Person authorised by Importer.
Multiple Choice Single Answer
Question Large number of exporters from which country are enjoying the privilege of receiving up front cash from importers in Russia?
Correct Answer United Kingdom
Your Answer United Kingdom
True/False
Question In developed markets, speculators play important role in determining the trend of currency rates.
Correct Answer True
Your Answer True
Select The Blank
Question In US Capital Market a Company prepares all the necessary documents in advance of the public issue under the facility known as ________.
Correct Answer Shelf Registration
Your Answer Shelf Registration
Select The Blank
Question In Overseas market the forward rate is generally quoted on the basis of ________.
Correct Answer Fixed date
Your Answer Calendar month
Select The Blank
Question Forward Margin makes a currency costlier then the currency is at ________.
Correct Answer Premium
Your Answer Discount
Multiple Choice Multiple Answer
Question These are the parties to the documentary credit :-
Correct Answer Negotiating Bank, advising bank , Reimbursing bank, Confirming bank
Your Answer Negotiating Bank, advising bank , Reimbursing bank, Confirming bank
Multiple Choice Multiple Answer
Question What are the functions of Asian Development Bank?
Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Multiple Choice Single Answer
Question Fixed, Floating or Limited flexibility are used in the context of
Correct Answer Exchange Rates
Your Answer Exchange Rates
Select The Blank
Question In mid 1992 ________ rejected the ratification of Maastricht treaty
Correct Answer Denmark
Your Answer UK
Multiple Choice Multiple Answer
Question Under the liberalisation through FEMA, what can an AD offer to the clients, without the prior permission of RBI or Government?
Correct Answer Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements
Your Answer Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements
Multiple Choice Single Answer
Question To whom is an AD required to report the cancellation of forward contracts?
Correct Answer No one at all.
Your Answer To Reserve Bank of India, fortnightly
Select The Blank
Question ECGC provides cover to an Indian contractor for construction work abroad under ________.
Correct Answer Construction works policy
Your Answer Export Performance Guarantee
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
Multiple Choice Single Answer
Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992?
Correct Answer USD 275 Billion
Your Answer USD 275 Billion
Multiple Choice Multiple Answer
Question What are the sources of raising funds for exports?
Correct Answer Suppliers credit , Forfaiting
Your Answer Suppliers credit , Forfaiting
Select The Blank
Question Forward margin makes a currency cheaper then the currency is at ________.
Correct Answer Discount
Your Answer Discount
Multiple Choice Single Answer
Question Name the common forex derivatives :-
Correct Answer Options, futures
Your Answer Options, futures
True/False
Question Country risk analysis is a futile exercise in the background of cost of analysis.
Correct Answer True
Your Answer False
Select The Blank
Question Even after liberalisation of exchange controls, the Euro sterling market remained volatile because of uncertainties in UK and gyrations of sterling against major ________ countries
Correct Answer OECD
Your Answer OECD
Match The Following
Question Correct Answer Your Answer
Issues linked with LIBOR,LIBID,LIMEAN FRNs FRNs
Issue of bonds without fixed rate of interest, linked to short term interest rate in the global market FloatingRate Note FloatingRate Note
Issue of loans internationally,through arranger, underwriter,co manager, for a large amount for sharing risk of lending Syndicated Loans Syndicated Loans
Equity issues in the foreign markets either as direct investments or portfolio investments. American or Global Depository Receipts American or Global Depository Receipts
Bottom of Form
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question In red clause credit some clauses are printed in Red ink.
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
Select The Blank
Question Global capital market can be understood from the study of ________.
Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Multiple Choice Multiple Answer
Question As regards the due date of an Option exercise which methods are in vogue?
Correct Answer American option , European Option
Your Answer American option
Multiple Choice Single Answer
Question In International trade, Advance payment means :-
Correct Answer Providing up front cash
Your Answer Sending bills for collection
Select The Blank
Question After the second world war, International settlements were done through ________.
Correct Answer Gold
Your Answer USDollar
Select The Blank
Question Hotels and Airline companies are allowed to receive payments in Indian rupees from foreign tourist without insisiting on ________.
Correct Answer Encashment certificate
Your Answer Encashment certificate
Match The Following
Question Correct Answer Your Answer
Issuing Bank Opening Bank Opening Bank
Stand by credit Bank guarantee Anticipatory Credit
Letter of credit Documentary credit Documentary credit
Bill of exchange Usance Bank guarantee
Multiple Choice Single Answer
Question In the context of International economy ,the period between 1920s and 1930s is known as
Correct Answer Great Depression
Your Answer Great Depression
Multiple Choice Multiple Answer
Question Internationally only those currencies are in demand
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
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
Multiple Choice Single Answer
Question How does ECGC protect banker's against risks for export finance?
Correct Answer Issuing various guarantees covering different risks connected with exports at nominal premium
Your Answer Providing Credit insurance against FCNR loans
Multiple Choice Single Answer
Question What is Risk Syndication facility?
Correct Answer Sharing of risk of non payment by supplier
Your Answer Sharing of risk of non payment by supplier
Multiple Choice Multiple Answer
Question What do you understand by 'Foreign Exchange Risk'?
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
Multiple Choice Single Answer
Question Under which category of exchange rate did the Indian Rupee came from June 92?
Correct Answer Other managed Floating
Your Answer Other managed Floating
Multiple Choice Single Answer
Question Various exchange rate mechanisms are basically used for
Correct Answer Correcting currency disequilibrium
Your Answer Correcting currency disequilibrium
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
Your Answer True
Multiple Choice Multiple Answer
Question What are the functions of International Finance Corporation?
Correct Answer Help private enterprise by financing projects , Provide technical assistance to private enterprise
Your Answer Provide technical assistance to private enterprise , Help to maintain the exchange rate stability
Multiple Choice Multiple Answer
Question What does a speculator accept while dealing with an option?
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
Multiple Choice Multiple Answer
Question Name the services provided by 'Reuter 3000' in forex market:-
Correct Answer Quotation of forex rates, interest rates , Electronic broking by matching the rates
Your Answer Quotation of forex rates, interest rates , Demat securities
Multiple Choice Multiple Answer
Question What criteria of lending is adopted 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
Your Answer The per capita income of the borrwoing country , The repayment capacity. , The Security offerred.
Multiple Choice Single Answer
Question Under the automatic route of Direct Investment Abroad, what is the restriction on market purchases?
Correct Answer 50% of the net worth of the investing company
Your Answer 50% of the net worth of the investing company
Select The Blank
Question The rate of interest on rupee finance for exports is not exceeding ________ less than PLR.
Correct Answer 0.025
Your Answer 0.025
Multiple Choice Single Answer
Question A country needs external commercial borrowings to :-
Correct Answer Meet the adverse balance of payments position
Your Answer Meet the adverse balance of payments position
Multiple Choice Multiple Answer
Question Export finance
Correct Answer Preshipment credit , Post shipment credit , Duty Draw back
Your Answer Preshipment credit , Post shipment credit , Duty Draw back
Multiple Choice Single Answer
Question Which is the most actively traded currency in the international market today?
Correct Answer US Dollar
Your Answer US Dollar
True/False
Question Installment credit is issued for specific quantities of goods to be shipped every week or month.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Equity can be raised internationallly by a company through :-
Correct Answer Fund raising, underwriting, hedging , arbitration operations
Your Answer Fund raising, underwriting, hedging , arbitration operations
Multiple Choice Multiple Answer
Question The factors which affect the performance of an option are:-
Correct Answer Underlying asset price , Time before expiration, rate of interest
Your Answer Underlying asset price , Time before expiration, rate of interest
Multiple Choice Single Answer
Question How does ICC help poor countries?
Correct Answer Attract Foreign Direct investments togeather with UNCTAD
Your Answer Attract Foreign Direct investments togeather with UNCTAD
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 False
Multiple Choice Single Answer
Question What is the effect of interweaving of national economies?
Correct Answer Govt decisions have stronger international repurcussions
Your Answer Economic growth and job creations is increased
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
Match The Following
Question Correct Answer Your Answer
Treasury management Profit making Funds transfer
Arbitraging Rate disparity Hedging instruments
Futures, Options Hedging instruments Profit making
Exchange Rate volatility Speculation Banks and multinationals
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 False
Select The Blank
Question Partnership firm not eligible for Overseas Direct Investment needs to apply to RBI Approval in form ________.
Correct Answer ODI
Your Answer ODI
True/False
Question If ERD > IRD hen exporter should availa Rupee finance
Correct Answer True
Your Answer True
Select The Blank
Question Mostly, countries in the Middle east require ________ invoice, for facilitating import duties .
Correct Answer Legalised
Your Answer Customs
Multiple Choice Single Answer
Question Financial management is complex process for
Correct Answer Companies which have international trade
Your Answer Companies which have international trade
Select The Blank
Question For opening JV/WOS in Nepal, Bhutan, the ceiling for financial commitment per annum is ________.
Correct Answer Rs. 350 crore
Your Answer Rs. 350 crore
Select The Blank
Question The creditworthiness of futures exchange is maintained through imposition of ________.
Correct Answer Margin
Your Answer Penalty
Multiple Choice Single Answer
Question Which authorities require the documents of International trade?
Correct Answer Customs, Excise, Bank,
Your Answer Customs, Excise, Bank,
Select The Blank
Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________.
Correct Answer Euro Commercial Papers
Your Answer Euro Commercial Papers
Select The Blank
Question EUROCLEAR, CEDEL are the names of ________ related with the issue of GDR.
Correct Answer Registrars
Your Answer Registrars
Multiple Choice Multiple Answer
Question Who can issue the Certificate of Inspection?
Correct Answer Export Inspection Council , Person authorised by Importer.
Your Answer Export Inspection Council , Person authorised by Importer.
Multiple Choice Multiple Answer
Question Which debits are permitted to EEFC accounts?
Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
True/False
Question CFR = FOB plus freight paid by seller + insurance paid by seller.
Correct Answer False
Your Answer False
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