QN1. Markets in which derivatives are traded are classified as
A. Assets backed market
B. Cash flow backed markets
C. Mortgage backed markets
D. Derivative securities markets
Answer
Answer: D. Derivative securities markets
QN2. Situation in which large portion of majority is borrowed from broker of investor is classified as
A. Future investment
B. Forward investment
C. Leveraged investment
D. Non leveraged investment
Answer
Answer: C. Leveraged investment
QN3. Type of contract which involves future exchange of assets at a specified price is classified as
A. Future contracts
B. Present contract
C. Spot contract
D. Forward contract
Answer
Answer: D. Forward contract
QN4. Packing Credit can be allowed in excess of the Export value, in which of the following circumstances:
A. Where by-product can be exported
B. Where partial domestic sale is involved
C. Export of de-oiled/defatted cakes
D. Any of the above.
Answer
Answer: D. Any of the above.
QN5. Type of unit which guarantees that all buying and selling will be made by traders of exchange is called
A. Trading house
B. Guarantee house
C. Clearing house
D. Professional house
Answer
Answer: C. Clearing house
QN6. Foreign Exchange rates in India are determined by:
A. Finance Ministry
B. RBI
C. FEDAI
D. Market forces of demand/supply
Answer
Answer: D. Market forces of demand/supply
QN7. Who regulates the foreign trade in India.
a. RBI
b. DGFT
c. FEDAI
d. SEBI
Answer
Answer: D. SEBI
QN8. Foreign Currency Non-Resident (Banks) account can be opened in the name of the following:
a. Non-resident Indian
b. Person of Indian origin
c. Overseas Corporate Bodies
d. Both a and b
Answer
Answer: d. Both a and b
QN9. Withdrawal of foreign Exchange by a person in India is not permitted in respect of which of the following:
a. Transactions with persons resident in Nepal and Bhutan
b. Travel to Nepal and Bhutan
c. Transactions given in Schedule 1 of FEMA
d. All the above.
Answer
Answer: d. All the above.
QN10. Which of the following methods is applied for quoting the foreign exchange rates in india?
a. Cross rates
b. Direct rate
c. Indirect rate
d. Buying rate
e. Selling rate
Answer
Answer: b. Direct rate
QN11.Overseas corporate bodies means:
A.50% by NRIs and balance by resident indians.
B.60% by NRIs irrespective of balance holdings
C.70% by NRI
D.60% by NRIs and balance by Government
Answer
Answer: B. 60% by NRIs irrespective of balance holdings
QN12.Example of derivative securities is
A.Return backed security
B.Mortgage backed security
C.Cash flow backed security
D.Interest backed security
Answer
Answer: B. Mortgage backed security
QN13.Maintaining a foreign currency account is helpful to
A.Avoid transaction cost.
B.Avoid exchange risk.
C.Avoid both transaction cost and exchange risk.
D.Avoid exchange risk and domestic currency depreciation
Answer
Answer: C. Avoid both transaction cost and exchange risk.
QN14.India’s foreign exchange rate system is?
A.Free float
B.Managed float
C.Fixed
D.Fixed target of band
Answer
Answer: B. Managed float
QN15.An exporter is categorised as an Star Export House, if the export performance / turnover in atleast 2 out of 4 years is around:
A.Rs.20 Crore
B.Rs. 500 Crores
C.Rs.100 Crores
D.Rs. 2500 Crores
E.Rs.7500 Crores
Answer
Answer: C. Rs.100 Crores
QN16.The Outstanding Export bills are to be reported to RBI at:
A.Half yearly intervals at June and December
B.Half yearly intervals at March and September
C.Quarterly intervals at the end of the quarter
D.Fortnightly basis on 15th and last day of the month
Answer
Answer: A. Half yearly intervals at June and December
QN17.An EEFC account will be opened as:
A.Savings Bank account
B.Current Account
C.FD/KD accounts
D.SB/CA /FD/KD accounts
Answer
Answer: B. Current Account
QN18.Under Whole-turnover packing Credit policy covered with ECGC i.e., ECIB- WTPC, the percentage of cover for MSME accounts:
A.75% up to Grade percentage limit
B.55% to 75% depending on the Claim percentage
C.90% of the limit
D.65% of the limit
Answer
Answer: C. 90% of the limit
QN19.Hedging transaction is indicated by
A.Transactions in odd amounts
B.Presentation of documentary support.
C.Frequency of such transactions.
D.None of the above.
Answer
Answer: D. None of the above.
QN20.The time limit for settlement of Usance import payment for capital goods is:
A.Maximum 6 months from the date of shipment.
B.Maximum 12 months from the date of shipment
C.Maximum up to the period less than 3 years.
D.Maximum 6 months from the date of documents.
Answer
Answer: C. Maximum up to the period less than 3 years.
QN21.Authorised Dealers may approve trade credits per import transaction up to :
A.USD 1 Million
B.USD 10 million
C.USD 20 million
D.USD 1 billion
Answer
Answer: C. USD 20 million
QN22.The Pre- shipment Credit in Foreign Currency will be available for the maximum period of :
A.90 days
B.180 days
C.270 days
D.360 days
Answer
Answer: D. 360 days
QN23.If all the terms and conditions are given on the bill of lading document itself is called as:
A.Clean bill of lading
B.Long form bill of lading
C.Short form bill of lading
D.Straight bill of lading.
Answer
Answer: B. Long form bill of lading
QN24.The bill of lading that covers the entire voyage covering several modes of transport are called as:
A.Straight bill of lading
B.Chartered party bill of lading
C.Through Bill of lading
D.Claused Bill of lading
Answer
Answer: C. Through Bill of lading
QN25.Any Bill of lading is safe for negotiation purposes if
A.It acknowledges that the goods have been put on board of the shipment.
B.No superimposed clause or notation that expressly declares the defective conditiion of the goods
C.It is an acknowledgement that the goods have been received by the ship owners for shipment.
D.Both a and b
E.None of the above
Answer
Answer: D. Both a and b
QN26.In case of usance bills, the Normal Transit period (NTP) as prescribed by FEDAI is
A.5 days
B.15 days
C.25 days
D.3 days
Answer
Answer: C. 25 days
QN27.The exporter should necessarily submit the export documents to the bank within:
A.15 days from the date of the documents
B.15 days from the date of shipment
C.21 days from the date of the documents
D.21 days from the date of shipment
Answer
Answer: D. 21 days from the date of shipment
QN28.When the seller place the goods at the side of the ship at named port and also clear the goods for Export, which of the terms will be used :
A.FCA- Free Carrier
B.FOB – Free on Board
C.FAS – Free Alongside Ship
D.DAP – Delivery at Place
Answer
Answer: C. FAS – Free Alongside Ship
QN29.The acronym SWIFT stands for
A.Safety Width In Financial Transactions.
B.Society for Worldwide International Financial Telecommunication.
C.Society for Worldwide Interbank Financial Telecommunication.
D.Swift Worldwide Information for Financial Transaction.
Answer
Answer: C. Society for Worldwide Interbank Financial Telecommunication.
QN30.Balance of Trade means:
A.Net position of capital account
B.Current account balance
C.Imports less exports
D.Exports less imports
Answer
Answer: D. Exports less imports
QN31.A contract which affords adequate protection to an exporter or an importer against exchange risk is :
A.Hedging
B.Guarantee
C.Letter of Credit
D.Forward Contract
Answer
Answer: D. Forward Contract
QN32.The Balance in hand at the close of the day is:
A.Short position
B.Long position
C.Over night position
D.Day light positiion
Answer
Answer: C. Over night position
QN33.The banks which may purchase or sell foreign currency in different markets to take advantages of the rate differentials is called:
A.Hedging
B.SWAP
C.Arbitrage
D.Cover deal
Answer
Answer: C. Arbitrage
QN34.A person does a transaction with Spot value on 8th January 2016(Friday), then the settlement will be done on :
A.9th January, 2016
B.11th January, 2016
C.12th January, 2016
D.On the same day
Answer
Answer: C. 12th January, 2016
QN35.Which of the following can remit up to USD 250000, under RBI’s Liberalised Remittance scheme
A.All resident individuals
B.Resident companies
C.All NRIs
D.Resident partnership firms
E.Resident HUFs and Trusts
Answer
Answer: A. All resident individuals
QN36.The visits by a resident Indian to which of the following countries are not eligible for obtaining foreign exchange under forex facilities to residents:
A.All SAARC countries
B.All EEC countries
C.All CIS countries
D.Iraq and Libya
E.Nepal and Bhutan
Answer
Answer: E. Nepal and Bhutan
QN37.For an amount up_____, the proof of imports such as exchange control copy of bill of entry is not required:
A.USD 10000
B.USD 25000
C.USD 50000
D.USD 100000
Answer
Answer: D. USD 100000
QN38.General permission is available to any resident individual to surrender received / realised /unspent forex with in a period of
A.60 days
B.90 days
C.180 days
D.No time limit
Answer
Answer: C. 180 days
QN39.Any resident Indian can hold Indian rupees during their travel abroad up to:
A. Rs.7500
B. Rs.10000
C. Rs.25000
D. No limit
Answer
Answer: C. Rs.25000
QN40.What is the maximum amount of remittance that AD banks can make for import payment where documents are directly received by importers:
A.USD 25000
B. USD 100000
C. USD 200000
D. USD 300000
Answer
Answer: D. USD 300000
