Caiib Preparation.gaurav

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    INTERNATIONAL BANKINGINTERNATIONAL BANKING

    General Bank ManagementGeneral Bank Management

    (Module-A)(Module-A)

    C.S.BALAKRISHNANC.S.BALAKRISHNAN

    FACULTY MEMBERFACULTY MEMBER

    SIR SPBT COLLEGESIR SPBT COLLEGE

    18.04.200718.04.2007

    Live Interactive Learning Session-

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    Forex MarketForex Market

    The tot! t"#$o%e# &$ Fo#e' M#(et ))#'. USThe tot! t"#$o%e# &$ Fo#e' M#(et ))#'. US

    *o!!# 1.+ t#&!!&o$ )e# *,. I$*&$ M#(et US-*o!!# 1.+ t#&!!&o$ )e# *,. I$*&$ M#(et US-

    1.20 BN )e# *,.1.20 BN )e# *,.

    Ro"$* the !o( /#(et t#t&$ #o/ S,*$e,Ro"$* the !o( /#(et t#t&$ #o/ S,*$e,$* To(,o &$ the et th#o"h Ho$ Ko$3$* To(,o &$ the et th#o"h Ho$ Ko$3

    S&$)o#e3 Bh#&$3 Lo$*o$ $* Ne Yo#(.S&$)o#e3 Bh#&$3 Lo$*o$ $* Ne Yo#(.

    )#t&&)$t #e 5e$t#! 6$( 3 o//e#&!)#t&&)$t #e 5e$t#! 6$( 3 o//e#&!6$(3 &$%et/e$t "$*3 o#)o#te36$(3 &$%et/e$t "$*3 o#)o#te3

    &$*&%&*"! $* 6#o(e#.&$*&%&*"! $* 6#o(e#.

    O%e# the o"$te# /#(etO%e# the o"$te# /#(et

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    FEMA ACT 1 -e$e Fo#e&$ E'h$e FEMA ACT 1 -e$e Fo#e&$ E'h$e 9Fo#e&$ E'h$e /e$ : &$!"*e;9Fo#e&$ E'h$e /e$ : &$!"*e;

    < A!! *e)o&t3#e*&t $* 6!$e< A!! *e)o&t3#e*&t $* 6!$e

    ),6!e &$ o#e&$ "##e$,3$* $,),6!e &$ o#e&$ "##e$,3$* $,*#t3t#%e!!e#= he>"e3!ette# o #e*&t*#t3t#%e!!e#= he>"e3!ette# o #e*&t

    $* 6&!! o e'h$e3e')#ee* o#$* 6&!! o e'h$e3e')#ee* o#

    *#$ &$ I$*&$ "##e$, $* ),6!e &$*#$ &$ I$*&$ "##e$, $* ),6!e &$

    $, o#e&$ "##e$,.$, o#e&$ "##e$,.

    6< A$, &$t#"/e$t ),6!e t the o)t&o$ o6< A$, &$t#"/e$t ),6!e t the o)t&o$ o

    the *#ee o# ho!*e#3the#eo o# $, othe#the *#ee o# ho!*e#3the#eo o# $, othe#

    )#t, the#eto3e&the# &$ I$*&$ "##e$, o# &$)#t, the#eto3e&the# &$ I$*&$ "##e$, o# &$

    o#e&$ "##e$,3o# )#t!, &$ o$e $* )#t!, &$o#e&$ "##e$,3o# )#t!, &$ o$e $* )#t!, &$

    the othe#?.the othe#?.

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    F@ RteF@ Rte

    ht & E'h$e Rte ht & E'h$e Rte E'h$e Rte & #te t h&h o$eE'h$e Rte & #te t h&h o$e

    "##e$, $ 6e e'h$e* &$to"##e$, $ 6e e'h$e* &$to$othe# "##e$,. I$ othe# o#* &t &$othe# "##e$,. I$ othe# o#* &t &%!"e o$e "##e$, &$ te#/ o othe#.%!"e o$e "##e$, &$ te#/ o othe#.

    ,;,;

    US 1 D R.4+.18US 1 D R.4+.18

    Th& #te & the o$%e#&o$ #te oTh& #te & the o$%e#&o$ #te oe%e#, US 1 to R. 4+.18e%e#, US 1 to R. 4+.18

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    Fto# -ete#/&$&$ E'h$eFto# -ete#/&$&$ E'h$e

    RteRte(a). Fundamental Reaon!(a). Fundamental Reaon!

    - Balan"e o# $a%ment & ur'lu lead to tronger "urren"%.- Balan"e o# $a%ment & ur'lu lead to tronger "urren"%.

    - E"onom" Grot* Rate &+g*,Lo grot* rate.- E"onom" Grot* Rate &+g*,Lo grot* rate.

    - F"al , Monetar% $ol"%- de"t nan"ng lead to- F"al , Monetar% $ol"%- de"t nan"ng lead tode're"aton o# "urren"%.de're"aton o# "urren"%.

    - Interet Rate &"urren"% t* *g*er nteret ll- Interet Rate &"urren"% t* *g*er nteret lla''re"ate n t*e *ort term.a''re"ate n t*e *ort term.

    - $olt"al Iue &$olt"al talt% lead to tale rate- $olt"al Iue &$olt"al talt% lead to tale rate

    (). Te"*n"al Reaon(). Te"*n"al Reaon

    - Go/ernment 0ontrol "an lead to unrealt" /alue.- Go/ernment 0ontrol "an lead to unrealt" /alue.- Free 1o o# 0a'tal #rom loer nteret rate to *g*er- Free 1o o# 0a'tal #rom loer nteret rate to *g*er

    nteret rate.nteret rate.

    ("). 2'e"ulaton & *g*er t*e 'e"ulaton *g*er t*e /olatlt% n("). 2'e"ulaton & *g*er t*e 'e"ulaton *g*er t*e /olatlt% nraterate

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    Metho* o "ott&o$Metho* o "ott&o$

    Metho* 5 IMetho* 5 I

    O$e O#$e D R 2O$e O#$e D R 2

    O$e A))!e D R 2.+0O$e A))!e D R 2.+0

    Met*od & IIMet*od & II

    R. 34 5 6 OrangeR. 34 5 6 Orange

    R. 34 5 7 A''leR. 34 5 7 A''le

    $r"e under ot* t*e met*od t*e ame t*oug* ex'reed d8er$r"e under ot* t*e met*od t*e ame t*o

    ug* ex'reed d8er

    Met*od - IMet*od - I

    9IRE0T(F0 xed)9IRE0T(F0 xed)

    :29 3 5 R 76.3;:29 3 5 R 76.3;GB$ 3 5 R.;6..>3??R 344 5 GB$ 3.3@>@6R 344 5 E:R 3.=>@6

    t* E8e"t #rom 4>.4;.3

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    :ndertandng To a% Ex"*ange:ndertandng To a% Ex"*ange

    DuoteDuote

    In Forex market t*ere are toa% Cuote .e. ot* u%ng andellng rate are g/en.

    1 US- D INR 4+.1 181 US- D INR 4+.1 18 BUYING RATE RE D RE 4+.1BUYING RATE RE D RE 4+.1

    SELLING RATE RE D RE 4+.18SELLING RATE RE D RE 4+.18

    In t*e ao/ementoned Cuoteloet market u%ng rate and *g*et market ellng rate.

    d d *

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    :ndertandng To a% Ex"*ange:ndertandng To a% Ex"*ange

    DuoteDuote

    B U Y I N G R A T E

    C H F 1 . 2 5 7 0

    S E L L I N G R A T E

    C H F 1 . 2 5 7 3

    U S D 1 = C H F 1 . 2 5 7 0 / 7 3

    One of the features of the FX markets is that this is the

    nearest form of perfect markets existing today.

    One of the reasons why this is so is that prices are always

    uoted as !"O "#$ %O!&S

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    %nderstanding &xchange 'ates%nderstanding &xchange 'ates

    9ollar,2 Fran" -- :29,0+F9ollar,2 Fran" -- :29,0+F Note t*e order o# t*e "urren"eNote t*e order o# t*e "urren"e

    :29 "ome e#ore t*e 0+F:29 "ome e#ore t*e 0+F

    T*e rt "urren"%() - Bae "urren"%T*e rt "urren"%() - Bae "urren"%

    2e"ond "urren"% (0+F) - Term2e"ond "urren"% (0+F) - Term"urren"%"urren"%

    It m'ortant to rememer t*at BdIt m'ortant to rememer t*at Bd

    H O8er n tradng ala% re#er to t*eH O8er n tradng ala% re#er to t*e

    BA2E 0:RREN0BA2E 0:RREN0..

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    :ndertandng Ex"*ange Duote:ndertandng Ex"*ange Duote

    In t*e FJ market Tme o# greatIn t*e FJ market Tme o# great

    m'ortan"e.m'ortan"e.

    T*ere#ore t*ere are *ort #orm #orT*ere#ore t*ere are *ort #orm #ore/er%t*ng.e/er%t*ng.

    *le Cuotng t*e dealer ue*le Cuotng t*e dealer ue onl% t*eonl% t*e

    t*rd H #ourt* de"mal.t*rd H #ourt* de"mal. :29,0+F:29,0+F 3.>63.>67474,,7676 :29,INR:29,INR [email protected]@=6=6,, 4444 GB$,:29GB$,:29 3.;43.;44444,, 3434 BIG FIG:REBIG FIG:RE In a l/e dealng "enaro dealerIn a l/e dealng "enaro dealer

    ould Cuote onl%ould Cuote onl% 74,76 =6,gure 74,76 =6,gure

    gure,34gure,34

    and t*e market aume t*atand t*e market aume t*at

    all 'la%er alread% kno t*eall 'la%er alread% kno t*e BIGBIGFIGUREFIGURE

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    0al"ulatng 0ro Rate0al"ulatng 0ro Rate

    Inda a market maker #or Indan Ru'eeInda a market maker #or Indan Ru'ee 9ollar, Ru'ee tradng ( t*e rt Cuote) tart n9ollar, Ru'ee tradng ( t*e rt Cuote) tart n

    t*e Muma Markett*e Muma Market B:T +AT ABO:T OT+ER 0:RREN0IE2 B:T +AT ABO:T OT+ER 0:RREN0IE2 +ERE 9O RATE2 FOR 0+F GB$ E:R ET0 0OME+ERE 9O RATE2 FOR 0+F GB$ E:R ET0 0OME

    FROM +O ARE T+E 0AL0:LATE9FROM +O ARE T+E 0AL0:LATE9

    A 0+F,R:$EE RATE I2 A 0RO22 OF 9OLLAR,R:$EEA 0+F,R:$EE RATE I2 A 0RO22 OF 9OLLAR,R:$EEH 9OLLAR , 0+F.H 9OLLAR , 0+F.

    9OLLAR , R:$EE 5 76.?6,?@9OLLAR , R:$EE 5 76.?6,?@

    9OLLAR , 0+F 5 3.?774 , 769OLLAR , 0+F 5 3.?774 , 76

    0+F , R:$EE 5 ??.=? , =60+F , R:$EE 5 ??.=? , =6 In ot*er ordIn ot*er ord 76.?@ , 3.?77476.?@ , 3.?7745 ??.=6 AN95 ??.=6 AN9 76.?6 , 3.?77676.?6 , 3.?7765 ??.=?5 ??.=?

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    0al"ulatng 0ro Rate0al"ulatng 0ro Rate Inda a market maker #or Indan Ru'eeInda a market maker #or Indan Ru'ee 9ollar, Ru'ee tradng ( t*e rt Cuote) tart n9ollar, Ru'ee tradng ( t*e rt Cuote) tart n

    t*e Muma Markett*e Muma Market B:T +AT ABO:T OT+ER 0:RREN0IE2 B:T +AT ABO:T OT+ER 0:RREN0IE2 +ERE 9O RATE2 FOR 0+F GB$ E:R ET0 0OME+ERE 9O RATE2 FOR 0+F GB$ E:R ET0 0OME

    FROM +O ARE T+E 0AL0:LATE9FROM +O ARE T+E 0AL0:LATE9

    A 0+F,R:$EE RATE I2 A 0RO22 OFA 0+F,R:$EE RATE I2 A 0RO22 OF9OLLAR,R:$EE H 9OLLAR , 0+F.9OLLAR,R:$EE H 9OLLAR , 0+F.

    9OLLAR , R:$EE 5 76.3@,3;9OLLAR , R:$EE 5 76.3@,3;

    9OLLAR , 0+F 5 3.>6=4 , =?9OLLAR , 0+F 5 3.>6=4 , =?

    0+F , R:$EE 5 ?6. , 6=45 ?6. AN95 ?6. AN9

    76.3;, 3..>6=?76.3;, 3..>6=?5 ?6.

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    !ypes of !ransaction( )alue *ate +oncept!ypes of !ransaction( )alue *ate +oncept

    9ue to /atne o# t*e market and orgn o# trana"ton andettlement ma% take 'la"e at d8erent tme one mot o#

    tme deal date and ettlement date d8er. Market ued8erent termnolog% *"* are ued un/erall% to a/od"on1"t.

    T,)e o T@NT,)e o T@N -te o -e!-te o -e! !"e -te!"e -te

    ChRe*,ChRe*, 36.33.>[email protected].>44@

    edneda%edneda%

    36.33>[email protected]>44@

    edneda%edneda%

    TOMTOM 36.33.>[email protected].>44@

    edneda%edneda%

    [email protected]@[email protected]@

    T*urda%T*urda%S)otS)ot 36.33.>[email protected].>44@

    edneda%edneda%

    3=.33.4@3=.33.4@

    Frda%Frda%

    Fo##*Fo##* 36.33.>[email protected].>44@

    edneda%edneda%

    An% da% a#terAn% da% a#ter

    3=.33.4@3=.33.4@

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    !ypes of !ransaction( )alue *ate +oncept!ypes of !ransaction( )alue *ate +oncept

    9ue to /atne o# t*e market and orgn o# trana"ton andettlement ma% take 'la"e at d8erent tme one mot o#

    tme deal date and ettlement date d8er. Market ued8erent termnolog% *"* are ued un/erall% to a/od"on1"t.

    T,)e o T@NT,)e o T@N -te o -e!-te o -e! !"e -te!"e -te

    ChRe*,ChRe*, 3=.33.4@3=.33.4@

    Frda%Frda%

    3=.33.4@3=.33.4@

    Frda%Frda%

    TOMTOM 3=.33.4@3=.33.4@

    Frda%Frda%

    >4.33.4@>4.33.4@

    Monda%Monda%

    S)otS)ot 3=.33.4@3=.33.4@

    Frda%Frda%

    >3.33.4@>3.33.4@

    Tueda%Tueda%

    Fo##*Fo##* 3=.33.4@3=.33.4@

    Frda%Frda%

    An% da% a#terAn% da% a#ter

    >3.33.4@>3.33.4@

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    Fo##* RteFo##* Rte

    ht & Fo##* Rte ht & Fo##* Rte

    Rte #ee* o# ett!e/e$t o$ $Rte #ee* o# ett!e/e$t o$ $

    #ee* *te &$ the "t"#e#ee* *te &$ the "t"#e

    A!! #te #e *e#&%e* #o/A!! #te #e *e#&%e* #o/ 2'ot2'ot

    raterate Fo##* #te & the )ot #teFo##* #te & the )ot #te

    *"te* o# the )#e/&"/ *&o"$t*"te* o# the )#e/&"/ *&o"$t

    Fo##* Rte D S)ot Rte J Fo##* Rte D S)ot Rte J

    )#e/&"/ o# *&o"$t)#e/&"/ o# *&o"$t

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    P#e/&"/-&o"$tP#e/&"/-&o"$t

    Fo##* )#&e D S)ot )#&e )!" o# /&$"Fo##* )#&e D S)ot )#&e )!" o# /&$"o##* /#&$.o##* /#&$.

    P#e/&"/ 5o##* %!"e o "##e$, & h&he#P#e/&"/ 5o##* %!"e o "##e$, & h&he#th$ )ot #te. A "##e$, &th !oe# #te oth$ )ot #te. A "##e$, &th !oe# #te o&$te#et & &* to 6e t )#e/&"/ &$ the&$te#et & &* to 6e t )#e/&"/ &$ theo##*. Fo##* /#&$ **e* to )ot #te.o##*. Fo##* /#&$ **e* to )ot #te.

    -&o"$t 5 o##* %!"e o "##e$, & !oe#-&o"$t 5 o##* %!"e o "##e$, & !oe#

    th$ )ot #te. A "##e$, &th h&he# #te oth$ )ot #te. A "##e$, &th h&he# #te o&$te#et & &* to 6e t *&o"$t. Fo##*&$te#et & &* to 6e t *&o"$t. Fo##*/#&$ *e*"te* #o/ )ot #te./#&$ *e*"te* #o/ )ot #te.

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    9er/at/e Intrument9er/at/e Intrument

    *erivatives instruments are management tools derived from

    underlying exposures ,#ssets such as +urrency

    +ommodities Shares /onds or any other indices used to

    reduce or neutrali0e the exposure on the underlying

    contracts.

    *erivatives could 1e Over the +ounter ,O!+ i.e. made to

    order or &xchange !raded Facilities which are standardi0ed

    in terms of 2uantity 2uality start 3 ending dates.

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    ht & $ F@ O)t&o$ht & $ F@ O)t&o$

    A$ F@ o)t&o$ o$t#t &%e the 6",e# o#A$ F@ o)t&o$ o$t#t &%e the 6",e# o#ho!*e#< the #&ht3 6"t $ot the o6!&t&o$3 to;ho!*e#< the #&ht3 6"t $ot the o6!&t&o$3 to; Bu% Ru'ee n t*e "ae o# a Ru'ee "all,Bu% Ru'ee n t*e "ae o# a Ru'ee "all,

    9ollar 'ut o'ton agant 9ollar (or ell9ollar 'ut o'ton agant 9ollar (or ell

    Ru'ee agant 9ollar n t*e "ae o# aRu'ee agant 9ollar n t*e "ae o# aRu'ee 'ut,9ollar "all o'ton)Ru'ee 'ut,9ollar "all o'ton)

    For a 'redetermned Cuantt% o# Ru'eeFor a 'redetermned Cuantt% o# Ru'ee At a 'redetermned xed 'r"e (t*e trke orAt a 'redetermned xed 'r"e (t*e trke or

    exer"e 'r"e)exer"e 'r"e) On (# Euro'ean t%le) or untl (# Amer"anOn (# Euro'ean t%le) or untl (# Amer"an

    t%le) a xed #uture datet%le) a xed #uture date For a 'remum (o'ton 'r"e) negotated atFor a 'remum (o'ton 'r"e) negotated at

    t*e tme o# dealngt*e tme o# dealng..

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    +o doe an FJ O'ton 98er #rom a+o doe an FJ O'ton 98er #rom a

    ForardForard

    0onder an ex'orter *o ex'e"t to re"e/e0onder an ex'orter *o ex'e"t to re"e/e3MN n ? mont*.3MN n ? mont*.

    T*e ex'orter "an go n #orT*e ex'orter "an go n #or Forard "ontra"t or O'ton "ontra"tForard "ontra"t or O'ton "ontra"t Forard "ontra"t & 'er#orman"e olgator% on t*eForard "ontra"t & 'er#orman"e olgator% on t*e

    #or u%er and eller.#or u%er and eller. O'ton "ontra"t & 'er#orman"e not olgator% #orO'ton "ontra"t & 'er#orman"e not olgator% #or

    #or o'ton *older.#or o'ton *older. 2u''oe ex'orter goe #or o'ton "ontra"t. +e ll2u''oe ex'orter goe #or o'ton "ontra"t. +e ll

    agree to ell 3 mn a#ter ? mont*. On due dateagree to ell 3 mn a#ter ? mont*. On due datede'endng u'on ,RE rate *e ll de"de tode'endng u'on ,RE rate *e ll de"de toexer"e t*e o'ton or not.exer"e t*e o'ton or not.

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    Q.Q. Option pricing would depend uponOption pricing would depend upon

    Which of the following aspects?Which of the following aspects?

    (a)(a) Amo!" (#$%"$%& ma&'%" o" o& maAmo!" (#$%"$%& ma&'%" o" o& ma o")o")

    (*)(*) S"&+'% ,&+-%S"&+'% ,&+-%(-)(-) So" Ra"%So" Ra"%

    () T% Am%&+-a! o& E&o%a!() T% Am%&+-a! o& E&o%a!

    (%)(%) A!! o the 6o%eA!! o the 6o%e

    A$e#; (e)

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    Q.Q. Which of the following statement isWhich of the following statement is

    false for a Forward Contract?false for a Forward Contract?

    (a)(a) A! TC ,&o-"A! TC ,&o-"

    (*)(*) C&%+" R+' o! -o!"%& a&"+% %3+"C&%+" R+' o! -o!"%& a&"+% %3+"(-)(-) Ca! *% 4o& o amo!"Ca! *% 4o& o amo!"

    ()() #o&' o! a&6+! &%+&%m%!"#o&' o! a&6+! &%+&%m%!"

    A$e#; (d)

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    Q.Q. An Irrevocale !etter of Credit can eAn Irrevocale !etter of Credit can e

    amended with the consent of followingamended with the consent of following

    parties.parties.

    (a)(a) T$% A+-a!" (B%&) a! T$%T$% A+-a!" (B%&) a! T$%

    B%!%4+-+a& (S%%&).B%!%4+-+a& (S%%&).

    (*)(*) I+!6 Ba!' a! Co!4+&m+!6 Ba!'.I+!6 Ba!' a! Co!4+&m+!6 Ba!'.

    (-) T$% A8++!6 Ba!' 9 R%+m*&+!6(-) T$% A8++!6 Ba!' 9 R%+m*&+!6 Ba!'.Ba!'.

    ()() (a) 9 (B) o!(a) 9 (B) o!

    A$e#; (d)

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    Q.Q. Issuing "an# has to point outIssuing "an# has to point out

    discrepancies in $ocuments negotiateddiscrepancies in $ocuments negotiated

    under !%C to the negotiating an#under !%C to the negotiating an#

    within a period of&within a period of&

    (a)(a) 1 mo!"$1 mo!"$

    (*)(*) 2 :%%'2 :%%'(-)(-) 7 a7 a

    ()() ! o! &%-%+" o4 o*;%-"+o! 4&om! o! &%-%+" o4 o*;%-"+o! 4&om

    "$% a+-a!"."$% a+-a!".

    A$e#; (")

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    Q.Q. A 'ed Clause !etter of Credit enalesA 'ed Clause !etter of Credit enales

    the eneficiar( to avail pre)shipmentthe eneficiar( to avail pre)shipment

    credit fromcredit from

    (a)(a) L/C I+!6 Ba!'L/C I+!6 Ba!'

    (*)(*) L/C Co!4+&m+!6 Ba!'L/C Co!4+&m+!6 Ba!'(-)(-) L/C A8++!6 Ba!' o& Nom+!a"%L/C A8++!6 Ba!' o& Nom+!a"% Ba!'Ba!'

    ()() A! *a!' &%4%&&% * "$%A! *a!' &%4%&&% * "$% *%!%4+-+a&.*%!%4+-+a&.

    A$e#; (")

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    Q.Q. In case of an Acceptance Credit* theIn case of an Acceptance Credit* the

    usance period is calculated from theusance period is calculated from the

    date of +hipment or date of "ills ofdate of +hipment or date of "ills of

    ,-change.,-change.

    (a)(a) S"a"%m%!" + "&%S"a"%m%!" + "&%

    (*)(*) S"a"%m%!" + 4a%S"a"%m%!" + 4a%(-)(-) S"a"%m%!" + a&"+a "&%S"a"%m%!" + a&"+a "&%

    ()() No! o4 "$% a*o8%No! o4 "$% a*o8%

    A$e#; (a)

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    Q.Q. A Certificate of Origin accompan(ingA Certificate of Origin accompan(ing

    documents must e issued signeddocuments must e issued signed

    (&(&

    (a)(a) E3o&"%&/S%%&E3o&"%&/S%%&

    (*)(*) S$++!6 A6%!"S$++!6 A6%!"(-)(-) C"om 44+-+aC"om 44+-+a

    ()() C$am*%& o4 Comm%&-% o4 E3o&"%&

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    Q.Q. Cr(stalli/ation of Foreign Currenc(Cr(stalli/ation of Foreign Currenc(

    !iailit( of the importer to e done (!iailit( of the importer to e done (

    the Issuing an# on the 01the Issuing an# on the 01thth da( fromda( from

    due date of pa(ment in case of failuredue date of pa(ment in case of failureon the part of importer. 2he conversionon the part of importer. 2he conversion

    of Foreign Currenc( !iailit( to 'upeeof Foreign Currenc( !iailit( to 'upee

    liailit( is done at&liailit( is done at&

    (a)(a) B+ B+!6 Ra"%B+ B+!6 Ra"%

    (*)(*) TT S%+!6 Ra"%TT S%+!6 Ra"%

    (-)(-) B+ S%+!6 Ra"%B+ S%+!6 Ra"%()() So" Ra"%So" Ra"%

    A$e#; (")

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    Q.Q. ,-port 3roceeds from an( of the AC4,-port 3roceeds from an( of the AC4

    countries should e settled under AC4countries should e settled under AC4

    mechanism e-cept&mechanism e-cept&

    (a)(a) S&+ La!'aS&+ La!'a

    (*)(*) N%aN%a(-)(-) ,a'+"a!,a'+"a!

    ()() R%*+- o4 I&a!R%*+- o4 I&a!

    A$e#; ()

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    Q.Q. 5a-imum amount for which A$ can5a-imum amount for which A$ can

    permit for reali/ation of e-portpermit for reali/ation of e-port

    proceeds e(ond si- months is&proceeds e(ond si- months is&

    (a)(a) USD 100=000USD 100=000

    (*)(*) USD 1=000=000USD 1=000=000(-)(-) USD 50=000USD 50=000

    ()() No -$ +m+" &%-&+*%No -$ +m+" &%-&+*%

    A$e#; ()

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    Q.Q. 2he 'ate of interest charged for ,-port2he 'ate of interest charged for ,-port

    Finance for period up to 061 da(sFinance for period up to 061 da(s

    which is stipulated ( '"I is&which is stipulated ( '"I is&

    (a)(a) A" Ba!' 4a".A" ?> 4a".

    A$e#; ()

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    Q.Q. Waiver 7e-emption8 for sumission ofWaiver 7e-emption8 for sumission of

    9' form is made in case of9' form is made in case of

    ,-port%'emittance of Foreign ,-change,-port%'emittance of Foreign ,-change

    in which of the following case7s8?in which of the following case7s8?

    (a)(a) G+4" "o R.5 a-G+4" "o R.5 a-(*)(*) T&a% Sam%T&a% Sam%

    (-)(-) E3o&" "o US @ 25000E3o&" "o US @ 25000

    ()() A o4 "$% a*o8%A o4 "$% a*o8%

    A$e#; (d)

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    Q.Q. 2he 9' forms are re:uired to e signed2he 9' forms are re:uired to e signed

    ( Customs Officials where as 33( Customs Officials where as 33

    Forms 73ost 3arcel8 is signed ( A3s inForms 73ost 3arcel8 is signed ( A3s in

    the case of&the case of&

    (a)(a) 100> A8a!-% ,am%!"100> A8a!-% ,am%!"

    (*)(*) A6a+!" L%""%& o4 C&%+"A6a+!" L%""%& o4 C&%+"(-)(-) T&a-' R%-o& o4 "$% ,a&"T&a-' R%-o& o4 "$% ,a&"

    ()() A o4 "$% a*o8%A o4 "$% a*o8%

    A$e#; (d)

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    Q.Q. 2he ;32 7;otional 2ransit 3eriod82he ;32 7;otional 2ransit 3eriod8

    computation for Advance against "illscomputation for Advance against "ills

    sent on collection* the periodsent on collection* the period

    commences from&commences from&

    (a)(a) B+ o4 La+!6B+ o4 La+!6

    (*)(*) Da"% o4 B+ o4 E3-$a!6%Da"% o4 B+ o4 E3-$a!6%(-)(-) Da"% o4 a--%"a!-% o4 B+ a" B&a!-$Da"% o4 a--%"a!-% o4 B+ a" B&a!-$

    %8% 4o& -o%-"+o!%8% 4o& -o%-"+o!

    ()() Ua!-% %&+oUa!-% %&+o

    A$e#; (")

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    Q.Q. A mechanism ( which A3s financesA mechanism ( which A3s finances

    ,-porters ( discounting ,-port,-porters ( discounting ,-port

    'eceivales without recourse to'eceivales without recourse to

    ,-porter%+eller is #nown as&,-porter%+eller is #nown as&

    (a)(a) Fa-"o&+!6Fa-"o&+!6

    (*)(*) Ga&a!"%%Ga&a!"%%(-)(-) Fo&4a+"+!6Fo&4a+"+!6

    ()() B+ R%+-o!"+!6B+ R%+-o!"+!6

    A$e#; (")

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    Q.Q. I,C Code is issued (&I,C Code is issued (&

    (a)(a) RBIRBI

    (*)(*) EI Ba!'EI Ba!'(-)(-) ECGCECGC

    ()() DGFTDGFT

    A$e#; (d)

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    Q.Q. Credit arranged ( the importer 7u(er8Credit arranged ( the importer 7u(er8

    from a an#%FI outside his countr( tofrom a an#%FI outside his countr( to

    settle pa(ments of imports is #nownsettle pa(ments of imports is #nown

    as&as&

    (a)(a) S+%&

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    Q.Q. ;', account can e

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    P,/e$t &$ #")ee o# )"#he o o#e&$e'h$e /, 6e *o$e &$ h 3 & the#")ee %!"e e>"&%!e$t & $ot /o#eth$

    A< Re 13003000B< Re +03000C< RE 23003000-< No$e o the 6o%e

    A$e# 5 B