International Finance New Pattern -8

This solved paper has been contributed by Kirti Kangokar

THANKS TO : Kirti Kangokar

1. Which factors are considered by RBI before granting permission to Foreign Company to set up a branch office in India?

• Track reco of the co, existing trade reltns, fin positin of the co
• Portfolio investment capacity,technology transfer intended
• Personnel working in the company, inward remittance
• External value of the currency of the company, company profile

2. Import finance is normally available at rates cheaper than domestic rates

• True / False

3. While transferring a share from resident to nonresident whose permission has to be taken

• Sect of inds assistance goi
• SEBI,
• RBI,
• stockexchange of nonresidents country

4.Packing credit is extended for a period of ----- days , 60 days,90 days, 120days, 180 days

5. Name the types of commercial debt markets

Domestic, offshore, bond mkt, derivative mkt

6. Export finance can be classified into :

Preshipment credit, post shipment credit, dutydrawback, buyers credit

7. EXIM bank acts as a __________ for RBI, GOvt & IDBI.

Agent, financier, AD, co banker

8. Exports on Defered payment credit are eligible for fin & refinance from EXIM bank, T /F

9. When is an invoice considered to be a consular?

Consularised by EXIM Bk , World BK, Exchange control of India, notation by consular of the importer in the exporters country

10. Agency which issue export certificates?

EXIM Bank, Export promotion council, commodity board, chamber of commerce

11. No guidelines on quality have been provided for investment under Liberalised remittance 25,000USD scheme by RBI: T/F

12. Within 30 days of receipt of money from For Investment the Indian Co. will report to the RO of RBI what details :

Name & address of the FI, Date of Receipt of funds, Identification no of FI, Details of govt. Approval

13. Indian party which has made direct investment abroad has to submit an Annual perf report in form ARP-1 to RBI : T /F

14. Date of exchange of currency : value date, delivery date, odd date, expiry date

15. Maxim for forex dealers in Indirect rate method : Buy Low, Sell High : Buy High, Sell High : Buy Low, Sell High : Buy High, Sell Low

16. Export finance terms : timely, adequate, cheap & liberal terms

17. EXIM bank give direct credit to Import of Capital Goods under :

Buyers Credit, Sellers credit, Exp promotion credit, Import abroad credit

18. Franchising & marketing cost for hotel & tourism related tech transfer is limited to : 3% of the gross room sales, 3% of annual turnover

19. What is the facility provided by ECGC to consultant who receive payments over a period of years from clients abroad?

Exchange risk coverage, turnover policy, service policy

20. A country can raise finance through bilateral aid of Line of credit from other countries : T / F

21. _________ insures risk in international trade . EXIM Bank, ECGC, RBI, ICC

22. International Bureau was renamed as -------------.  FEDAI, INCOTERMS, World Chamber Federation, Uniform Customs & Practices

23. In case of import finance through Trust Receipts, with whom does the ownership of goods remain?

Exporter / Importer / Bank of Importer / Bank releasing the import documents

24. Income from interest on balances in NRE account is exempt from Income Tax . T / F

25. All transactions undertaken which do not alter his assets / Liabilities outside India are _----------- account transactions : current acct / capital account / resident account

26. Which type of account can be opened in EEFC ? SB / Current Account / Fixed deposit / Repatriable Acct

27. On which date did FEMA come in to force : 1^st June 2000

28. Which are the sources of raising funds : own funds, syndicated loans, friends & relatives, banks

29. ICC’s organ of settlement of disputes is ---------.

30. ------------- is non-recourse discounting of export receivables : forfeiting, import loan, export loan

31. It is obligatory for Authorised Dealers under section 74 of FERA to comply with all general & specific directives given by RBI . T / F

32. Debt swaps & asset swaps linked to bonds are----------- : Arbritage , ECBs, equity investments, Floating rate notes

32. Line of credit in African countries is extended by ------------ : Dev Bank of India, IDBI, EXIM, RBI

33. EEFC account holder is eligible to have --------------facility: cheque book & nomination, OD facility, Credit card facility, loan against EEFC account balance