QN1. IEC is issued by:
a) Reserve Bank of India
b) Ministry of Commerce
c) Ministry of Finance
d) Any of the above
Answer
Answer: b) Ministry of Commerce
QN2. Cash Exports Mean:
a) payment in advance
b) payment at sight
c) Payment in 90 days
d) None of the above.
Answer
Answer: b) payment at sight
QN3. Uniform Customs & Practice is drafted by:
a) Chamber of Commerce
b) Reserve Bank of India
c) Commercial Banks
d) None of the above
Answer
Answer: a) Chamber of Commerce
QN4. SDF is used as:
a) Principal Document
b) Regulatory Document
c) Auxiliary Document
d) None of the above
Answer
Answer: a) Principal Document
QN5. Amount eligible for EEFC A/c is:
a) 50%
b) 80%
c) 100%
d) None of the above
Answer
Answer: c) 100%
QN6. Packing Credit Finances is extended for:
a) Procurement of Raw Material
b) Packing the good.
c) To meet the pre-shipment costs.
d) All three above purposes.
Answer
Answer: d) All three above purposes.
QN7. Master Document 1 is concerned with:
a) Principal Commercial Documents
b) Auxiliary Commercial Documents
c) Regulatory Documents
d) None of the above.
Answer
Answer: c) Regulatory Documents
QN8. In CIF Contract, Claim if would be paid to
a) The Seller
b) The Buyer
c) The Seller or Buyer
d) None of the above.
Answer
Answer: d) None of the above.
QN9. The time for presentation of documents after shipment is
a) 15 days
b) 25 days
c) 21 days
d) Any time after shipment
Answer
Answer: c) 21 days
QN10. Running Account facility is meant for:
a) Packing credit
b) Bills Facility
c) Cash Credit
d) All of the above
Answer
Answer: a) Packing credit
QN11. To secure the Bank for packing credit finance ECGC provides:
a) WTPSG
b) WTPCG
c) Comprehensive Risk Policy
d) All of the above
Answer
Answer: c) Comprehensive Risk Policy
QN12. ISO is based on the principle of:
a) CWI
b) IPQC
c) TQM
d) SCS
Answer
Answer: c) TQM
QN13. In Small Exporters Policy ECGC pays loss on account of Commercial Risk up to:c
a) 90%
b) 100%
c) 95%
d) None of the above
Answer
Answer: c) 95%
QN14. Total Loss is Marine Insurance means:
a) ATL
b) CTL
c) Both ATL & CTL
d) None of the above
Answer
Answer: b) CTL
QN15. How can exporter protect his fluctuation Risk?:
a) By Hedging
b) From Insurance Co.
c) From PLI
d) All of the above
Answer
Answer: a) By Hedging
QN16. Airway Bill is:
a) Quasi Negotiable Instrument
b) Non-Negotiable Instrument
c) Negotiable Instrument
d) None of the above
Answer
Answer: a) Quasi Negotiable Instrument
QN17. In Letter of Credit the Bill of Exchange can be drawn on:
a) The Applicant
b) The Beneficiary
c) The Issuer
d) The Negotiating Bank
Answer
Answer: d) The Negotiating Bank
QN18. AR-4 is related to:
a) Customs Declaration
b) Shipping Line Certificate
c) Excise Declaration
d) None of the above
Answer
Answer: c) Excise Declaration
QN19. The Export Sight Bill must be realized in:
a) 100 days
b) 25 days
c) 21 days
d) 7 days
Answer
Answer: a) 100 days
QN20. In Negotiation Credit the Negotiating Bank negotiates the documents:
a) Without Recourse
b) With Recourse
c) With or Without Recourse
d) All of the above
Answer
Answer: c) With or Without Recourse
QN21. Caused Bill of Lading mean:
a) Late Shipment
b) Shipment to a different port
c) Bad state of Packing
d) All of the above
Answer
Answer: d) All of the above
QN22. In DBK the Customs is obligated to pay the claim of Exporter in:
a) 30 days
b) 7 days
c) 60 days
d) 75 days
Answer
Answer: a) 30 days
QN23. Maximum MDA facility is means for:
a) Total expenditure of Trade Fair
b) Rs. 90000/- for Trade Fair participation
c) Rs. 100000/- for Trade Fair participation
d) Rs. 50000/- for Trade Fair participation
Answer
Answer: c) Rs. 100000/- for Trade Fair participation
QN24. Present Exim Policy is:
a) AM 2000 – 2002
b) AM 2001 – 2002
c) AM 1997 – 2002
d) None of the above
Answer
Answer: c) AM 1997 – 2002
QN25. Double weightage factor is for:
a) Exports of products of SSI Sector.
b) Exports from North Easter Sector.
c) Exports from J & K.
d) All the above
Answer
Answer: a) Exports of products of SSI Sector.
QN26. Star Trading House can be recognized on Exporting:
a) Rs. 560 crore exports last year.
b) Rs. 312 crore Exports in 3 years.
c) Both (a) and (b) above.
d) Average export of Rs. 1125 crore in 3 years.
Answer
Answer: c) Both (a) and (b) above.
QN27. The validity period for Star Exporters recognition is:
a) 5 years.
b) 3 years
c) AS decided by DGFT.
d) All the above
Answer
Answer: b) 3 years
QN28. If an Import Licence is issued for 24 months on 24.12.2000 the last date of shipment would
be:
a) 24.12.2002
b) 23.12.2002
c) 31.12.2002
d) 30.11.2002
Answer
Answer: a) 24.12.2002
QN29. In EPCG scheme the Export Obligations can be achieved in:
a) 3 years
b) 5 years
c) 8 years
d) 10 years
Answer
Answer: a) 3 years
QN30. The second hand capital goods should not be more than:
a) 10 years old
b) 5 years old
c) 8 years old
d) None of the above
Answer
Answer: a) 10 years old
QN31. Advance Licence is meant for:
a) Raw Materials & Components
b) Capital Goods
c) Capital Goods & Raw Material
d) None of the above
Answer
Answer: c) Capital Goods & Raw Material
QN32. The following duties are neutralized by DEPB:
a) Excise Duty
b) Custom Duty
c) Custom & Excise Duties
d) None of the above
Answer
Answer: c) Custom & Excise Duties
QN33. The Export declaration forms used in Software Exports are:
a) SOFTEX Form
b) SDF Form
c) G R Form
d) Any one of them.
Answer
Answer: d) Any one of them.
QN34. In Foreign Exchange Cover, if the Currency is at premium. The premium for 3 months is 10/15 Rs. If the exchange rate in a particular date is 1 US$= Rs. 47.50/- so what would be the selling rate after 3 months. :
a) Rs. 47.60/
b) Rs. 47.75/
c) Rs. 47.65/
d) Rs. 47.70/
Answer
Answer: c) Rs. 47.65/-
QN35. In Indian exchange management system the profits are earned by Banks by adopting the following system:
a) Buy high sell low
b) Buy low sell high
c) Buy flat sell low.
d) Buy low sell par.
Answer
Answer: a) Buy high sell low
QN36. Shall the Bank accept an Insurance Policy:
a) Only if issued before the shipment date
b) Issued after the shipment date with risk starting before the shipment
c) Both the above
Answer
Answer: a) Only if issued before the shipment date
QN37. Full Set Term with regards to shipment mean:
a) Full set of all documents called for
b) Full set of Negotiable documents
c) All original by lading
d) All of the above
Answer
Answer: a) Full set of all documents called for
QN38. In ECGC small exports policy the shipment declaration have to be made:
a) Every month
b) Once in two months
c) On Quarterly basis
d) Twice during the currency policy
Answer
Answer: c) On Quarterly basis
QN39: The twelfth largest US exporter is:
A) General Motors
B) Wal-Mart
C) Du Pont
D) Microsoft
Answer
Answer: C) Du Pont
QN40: Companies become involved in exporting for a number of reasons, all of which are linked to the desire to:
A) increase profits and sales.
B) protect profits and sales from being eroded.
C) both “a” and “b”.
D) none of the above.
Answer
Answer: C) both “a” and “b”.
QN41: Which of the following is not a reason for exporting?
A) To offset cyclical sales of the global market.
B) To satisfy a host government’s requirement that the local subsidiary export.
C) To remain competitive in the home market.
D) To test foreign markets and foreign competition inexpensively.
Answer
Answer: A) To offset cyclical sales of the global market.
QN42: A major reason given for a firm not exporting is:
A) preoccupation with corporate restructuring.
B) preoccupation with the vast American market.
C) no knowledge of foreign operations.
D) insufficient capital to expand foreign markets.
Answer
Answer: B) preoccupation with the vast American market.
QN43: The first step in locating foreign markets, whether for export or for foreign manufacturing is to determine whether:
A) sufficient personnel are available to handle the foreign operations.
B) sufficient capital is available to expand internationally.
C) excess production capacity exists in the home market.
D) a market exists for the firm’s product.
Answer
Answer: D) a market exists for the firm’s product.
QN44: The aim of the TIC website is to:
A) provide all information necessary to export a product.
B) inform the inexperienced about the available resources before they contact the Trade Information Center directly for assistance.
C) provide additional information for the experienced after they have contacted the Trade Information Center.
D) all of the above.
Answer
Answer: B) inform the inexperienced about the available resources before they contact the Trade Information Center directly for assistance.
QN45: Firms that are already exporting and desire to expand their overseas business may bypass the Trade Information Center and go to the nearest district office of the:
A) US Department of Exporting.
B) Commerce Department’s Exporting Administration.
C) Commerce Department’s International Trade Administration.
D) US Department of International Trade.
Answer
Answer: C) Commerce Department’s International Trade Administration.
QN46: The International Trade Administration offers a wide range of export promotion activities that include:
A) export counseling, analysis of foreign markets, assessment of industry competitiveness, and development of opportunities.
B) the National Trade Data Bank.
C) SCORE/ACE programs which have free one-on-one counseling to small firms.
D) SBDC/SBI programs in that provide export counseling.
Answer
Answer: A) export counseling, analysis of foreign markets, assessment of industry competitiveness, and development of opportunities.
QN47: The _____ is a program that provides current sales leads from overseas firms that want to buy or represent American firms.
A) Trade Representation Program.
B) Trade Incentives Program.
C) Trade Alternatives Program.
D) Trade Opportunities Program.
Answer
Answer: D) Trade Opportunities Program.
QN48: Which of the following are trade events organized by the Department of Commerce to help in both locating foreign representatives and making sales?
A) US pavilions.
B) Reverse trade missions.
C) Product literature center.
D) all of the above.
Answer
Answer: D) all of the above.
QN49: An export marketing plan is ____ a domestic marketing plan.
A) essentially the same as
B) more comprehensive than
C) more detailed than
D) more specific than
Answer
Answer: A) essentially the same as
QN50: If a foreign customer insists on a FAS (free alongside ship), the seller:
A) quotes a price that includes the cost of the goods, insurance and all transportation costs.
B) quotes a price that includes the cost of the goods and all transportation costs.
C) pays all of the transportation and delivery expense up to the ship’s side.
D) quotes a price that covers all costs up to the border.
Answer
Answer: C) pays all of the transportation and delivery expense up to the ship’s side.
QN51: The sales agreement should specify:
A) all of the terms and conditions of the sale.
B) as simply as possible the duties of the representative and the firm.
C) as comprehensively as possible the duties of the representative and the firm.
D) none of the above.
Answer
Answer: B) as simply as possible the duties of the representative and the firm.
QN52: Which of the following is not one of the kinds of payment terms offered by exporters to foreign buyers?
A) Cash on delivery.
B) Cash in advance.
C) Consignment.
D) Documentary drafts.
Answer
Answer: A) Cash on delivery.
QN53: An unconditional order that is drawn by the seller on the buyer to pay the draft’s amount on presentation or at an agreed future date and that must be paid before the buyer receives shipping documents is called:
A) an unconditional draft.
B) a presentation draft.
C) an export draft.
D) a documentary draft.
Answer
Answer: C) an export draft.
QN54: Although exporters would prefer to sell on the almost riskless letter of credit terms, increased foreign competition and the universally tight money situation are forcing them to:
A) accept payment in foreign currency.
B) accept export drafts.
C) accept documentary drafts.
D) offer credit.
Answer
Answer: A) accept payment in foreign currency.
QN55: A specialized corporate form authorized by the federal government that provides tax advantages for exporting firms is known as:
A) an exporting corporation.
B) a foreign sales corporation.
C) a foreign exporting corporation.
D) a foreign tax advantage corporation.
Answer
Answer: B) a foreign sales corporation.
QN56: When non-exporters complain about the complexity of export procedures, they are generally referring to:
A) government regulations.
B) dealing with foreign regulations.
C) documentation.
D) all of the above.
Answer
Answer: C) documentation.
QN57: Which of the following is not one of the purposes served by the export bill of lading?
A) It is a contract for carriage between the shipper and carrier.
B) It is a receipt from the carrier for the goods shipped.
C) It is a certificate of ownership.
D) It is a certificate for release of liability.
Answer
Answer: D) It is a certificate for release of liability.
QN58:____ warehouse is authorized by customs authorities for the storage of goods on which payment of import duties is deferred until the goods are removed.
A) A bonded
B) An import
C) A customs
D) A deferred
Answer
Answer: A) A bonded
