QN1. Exchange margin enters into the bills selling rate
A. one time only
B. twice
C. three times
D. none of the above
Answer
Answer: B
QN2. The bills selling rate is calculated by adding exchange margin to the
A. TT buying rate
B. TT selling rate
C. Bills buying rate
D. Bills selling rate
Answer
Answer: B
QN3. In India exchange rates for foreign currencies other than US dollar are calculated as
A. TT buying rate
B. Cross rates
C. TT sellling rate
D. Bill sellling rate
Answer
Answer: B
QN4. ——– are authorised to carry out all current account and capital account transaction.
A. Authorised Dealer – Category I
B. Authorised Dealer – Category II
C. Authorised Dealer – Category II
D. money changers
Answer
Answer: A
QN5. FEDAI was established in
A. 1956
B. 1957
C. 1958
D. 1959
Answer
Answer: C
QN6. FEDAI has its headquarters at
A. Delhi
B. Mumbai
C. Kolkatta
D. Bangalore
Answer
Answer: B
QN7. With regard to charging of commission, quotation of rates, etc., the authorised dealer should also comply with the rules of
A. RBI
B. FEDAI
C. Central Government
D. Bank
Answer
Answer: B
QN8. The system under which maintenance of external value of the currency at a predetermined level is
A. fixed exchange rate
B. floating exchange rate
C. gold standard
D. par value system
Answer
Answer: A
QN9. In a pure form fixed exchange rate system the exchange rate for currency is determined by the ———
A. Demand forces
B. Supply forces
C. Government
D. Banks
Answer
Answer: C
QN10. The reduction in the value of a currency due to market forces is known as
A. Appreciation
B. Revaluation
C. Depletion
D. Depreciation
Answer
Answer: D
QN11. The purchase or sale of foreign exchange by the central bank of the country to influence the exchange rate is known as —–
A. Appreciation
B. official intervention
C. Depreciation
D. Inflation
Answer
Answer: B
QN12. Paper currency was used for internal use and gold was used for international settlement under ———- standard
A. IMF
B. gold bullion
C. fixed
D. floating
Answer
Answer: B
QN13. Rupee is partially convertible on
A. current account
B. Vostro account
C. capital account
D. Nostro account
Answer
Answer: C
QN14. Convertibility of rupee refers to its convertibility into a __ as desired by its holder.
A. foreign currency
B. local currency
C. Bank Notes
D. Demand Draft
Answer
Answer: A
QN15. IMF classifies Indian currency system as
A. Currency Board Arrangements
B. Independently floating
C. Managed floating with no predetermined path for the exchange rate
D. Exchange rates within crawling banks
Answer
Answer: C
QN16. Balance of payment records ———transactions of the country with outsiders
A. economic
B. debit
C. credit
D. cash
Answer
Answer: A
QN17. For balance of payments statistics, visible trade refers to trade-in
A. goods only
B. service only
C. goods/commodities
D. gold
Answer
Answer: C
QN18. Generally, imports are recorded at ———- value in the balance of payments
A. FOB
B. CIF
C. CPT
D. CIP
Answer
Answer: B
QN19. Generally, exports are recorded at ——value in the balance of payments
A. FOB
B. CIF
C. CPT
D. CIP
Answer
Answer: A
QN20. Difference in balance of payments due to statistical discrepancies are recorded as
A. balance of trade
B. balance of payment
C. errors and omissions
D. deficit
Answer
Answer: C
QN21. A ‘credit in balance of payments indicates
A. accumulation of bank balances abroad
B. foreign direct investment received into the country
C. earning of foreign exchange by the country
D. earning of foreign exchange or incurring of liability abroad or decrease in asset abroad
Answer
Answer: D
QN22. A debit in the balance of payments does not indicate
A. import of goods and services
B. foreign tourists encashing travellers cheque in the country
C. investments made abroad
D. none of the above
Answer
Answer: B
QN23. The current account of the balance of payments includes
A. unilateral payments
B. portfolio investments
C. short term borrowings
D. long term borrowings
Answer
Answer: A
QN24. The balance of payment does not include
A. transactions in real assets
B. transactions of financial claims
C. transactions between two non-residents
D. transactions in gold
Answer
Answer: C
QN25. Country A imports gold worth USD 100 million for commercial purposes. The transaction will affect
A. current account only
B. capital account only
C. official reserves account only
D. both current account and capital account
Answer
Answer: D
QN26. Basic balance in balance of payments refers to
A. the balance of payments on current account
B. the combined balance of current and capital accounts
C. the balance in the official reserves account
D. the total balance of current account and balances on long term items in capital account.
Answer
Answer: D
QN27. Autonomous transactions in balance of payments take place
A. only among private individuals
B. without the approval of the government
C. generally for-profit motive
D. as an effect of exchange rate changes
Answer
Answer: C
QN28. Exchange control as a method of correcting balance of payments disequilibrium does not include
A. exchange restriction
B. exchange reserves
C. exchange intervention
D. exchange clearing arrangement
Answer
Answer: B
QN29. The strategy of deflation employed to correct the balance of payments deficit includes the use of
A. monetary policy
B. fiscal policy
C. both fiscal and monetary policy
D. exchange rate policy
Answer
Answer: C
QN30. 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
QN31. 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
QN32. 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
QN33. 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.
QN34. 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
QN35. 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
QN36. Who regulates the foreign trade in India.
a. RBI
b. DGFT
c. FEDAI
d. SEBI
Answer
Answer: D. SEBI
QN37. 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
QN38. 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.
QN39. 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
QN40.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
