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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False Question Integrated branches of Commercial banks handle forex transactions as well as options, swaps, futures, arbitrage operations Correct Answer True
Your Answer True
True/False
Question JV means Joint venture and WOS means World of Security. Correct Answer False Your Answer False
Select The Blank Question The rate of interest on rupee finance for exports is not exceeding ________ less than
PLR. Correct Answer 0.025 Your Answer 50 basis points over LIBOR
Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option?
Correct Answer The exercise or strike price, the amount , The expiration date and time, the method of payment Your Answer The exercise or strike price, the amount , The expiration date and time, the method of payment
Multiple Choice Single Answer Question In the syndicated loan arrangement the borrower has to execute :-
Correct Answer Single Principal loan agreement Your Answer Single Principal loan agreement
True/False Question At Least one principal Lender bank is essential for issue of the ADR or GDR. Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question US financial system is the freest system because Correct Answer Institutions can introduce new products and instuments at the price of their choice. Your Answer Institutions can introduce new products and instuments at the price of their choice.
Multiple Choice Single Answer Question In a coupon swap who is called the buyer? Correct Answer One who pays the fixed rate of interest
Your Answer One who pays the fixed rate of interest
True/False
Question Till August 1994 India was following the Indirect Methodof Rate quotation. Correct Answer False Your Answer False
Select The Blank
2
Question For setting up joint ventures abroad or equity participation abroad, EXIM bank provides funds under ________ Scheme.
Correct Answer Overseas investment facility Your Answer Overseas investment facility
Multiple Choice Single Answer Question Under the automatic route of Direct Investment Abroad, what is the restriction on market purchases? Correct Answer 50% of the net worth of the investing company
Your Answer 50% of the net worth of the investing company
Multiple Choice Single Answer
Question What are the powers of money changers? Correct Answer Purchase and sell foreign currency notes and travellers cheques Your Answer Purchase and sell foreign currency notes and travellers cheques and also Give export
finance
Select The Blank
Question Any company involved in foreign exchange transactions is exposed to ________ risk. Correct Answer Currency Your Answer Currency
Multiple Choice Multiple Answer Question What are the features of Settlement price ?
Correct Answer Price established by the clearing house at the end of each trading session , It is used to determine the net gain, loss, margin call and next days price limits Your Answer Price established by the clearing house at the end of each trading session , It is used to determine the net gain, loss, margin call and next days price limits
Multiple Choice Multiple Answer Question What are the activities of ICC?
Correct Answer Aribtration and dispute resolving , Canvass for open trade combat commercial crime Your Answer Aribtration and dispute resolving , Canvass for open trade combat commercial crime , Increased Govt regulation of Business
True/False Question Cause of increase in cost of public issues Underwriting fees , selling commission
Correct Answer True Your Answer False
Select The Blank Question The currency swaps used ________. Correct Answer To lower the risk of currency exposure Your Answer To lower the risk of currency exposure
True/False
Question The Option period in the forward contract is at the option of the Banker, hence the bank has to be very conservative in quoting rates. Correct Answer False Your Answer True
Multiple Choice Multiple Answer Question Which factors affect the exchange rates in short time period?
Correct Answer Demand and supply, interest rates, inflation, , Sentiment, Speculation
3
Your Answer Demand and supply, interest rates, inflation, , Sentiment, Speculation , GDP,Balance of trade and payment,Unemployment
Match The Following Question Correct Answer Your Answer
Departure EXW EXW Main carriage paid CFR CFR
Main carriage unpaid FAS FAS
Arrival DES DES
Multiple Choice Multiple Answer Question Sterling Market is attractive for an international investor because Correct Answer Gilts offer higher attractive margin , Choice of issuing medium term and long term bonds
Your Answer Gilts offer higher attractive margin , Choice of issuing medium term and long term bonds , Linking of issues to currency swaps
True/False Question In red clause credit some clauses are printed in Red ink. Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad ,
Payment to EOUs in India for services rendered by them
Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the bid rate for USD? Correct Answer USD 1=Rs 50.5000
Your Answer USD 1=Rs 50.5000
Multiple Choice Single Answer
Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones
Your Answer To weed out unviable projects and rank profitable ones
Multiple Choice Multiple Answer Question Criteria for investment abroad under automatic route :-
Correct Answer Activity for investment is core activity of Indian Company. , Total Financial commitment in JV/WOS as per prescribed ceiling Your Answer Activity for investment is core activity of Indian Company. , Total Financial commitment in JV/WOS as per prescribed ceiling
Multiple Choice Multiple Answer Question Who can issue the Certificate of Inspection?
Correct Answer Export Inspection Council , Person authorised by Importer.
4
Your Answer Export Inspection Council , Person authorised by Importer.
Multiple Choice Single Answer Question Large number of exporters from which country are enjoying the privilege of receiving up front cash from importers in Russia?
Correct Answer United Kingdom Your Answer United Kingdom
True/False Question In developed markets, speculators play important role in determining the trend of currency rates. Correct Answer True
Your Answer True
Select The Blank
Question In US Capital Market a Company prepares all the necessary documents in advance of the public issue under the facility known as ________. Correct Answer Shelf Registration Your Answer Shelf Registration
Select The Blank Question In Overseas market the forward rate is generally quoted on the basis of ________.
Correct Answer Fixed date Your Answer Calendar month
Select The Blank Question Forward Margin makes a currency costlier then the currency is at ________. Correct Answer Premium
Your Answer Discount
Multiple Choice Multiple Answer
Question These are the parties to the documentary credit :- Correct Answer Negotiating Bank, advising bank , Reimbursing bank, Confirming bank Your Answer Negotiating Bank, advising bank , Reimbursing bank, Confirming bank
Multiple Choice Multiple Answer Question What are the functions of Asian Development Bank?
Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Multiple Choice Single Answer Question Fixed, Floating or Limited flexibility are used in the context of
Correct Answer Exchange Rates Your Answer Exchange Rates
Select The Blank Question In mid 1992 ________ rejected the ratification of Maastricht treaty Correct Answer Denmark
Your Answer UK
Multiple Choice Multiple Answer
Question Under the liberalisation through FEMA, what can an AD offer to the clients, without the prior permission of RBI or Government?
5
Correct Answer Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements
Your Answer Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements
Multiple Choice Single Answer Question To whom is an AD required to report the cancellation of forward contracts? Correct Answer No one at all. Your Answer To Reserve Bank of India, fortnightly
Select The Blank Question ECGC provides cover to an Indian contractor for construction work abroad under
________. Correct Answer Construction works policy Your Answer Export Performance Guarantee
True/False Question The Negotiating bank examines the documents submitted by the seller and makes
payment if they comply the terms and conditions of the LC. Correct Answer True Your Answer True
Multiple Choice Single Answer Question What was the official foreign currency reserve of the group of seven central Banks
taken togeather in mid 1992? Correct Answer USD 275 Billion Your Answer USD 275 Billion
Multiple Choice Multiple Answer Question What are the sources of raising funds for exports? Correct Answer Suppliers credit , Forfaiting
Your Answer Suppliers credit , Forfaiting
Select The Blank
Question Forward margin makes a currency cheaper then the currency is at ________. Correct Answer Discount Your Answer Discount
Multiple Choice Single Answer Question Name the common forex derivatives :-
Correct Answer Options, futures Your Answer Options, futures
True/False Question Country risk analysis is a futile exercise in the background of cost of analysis. Correct Answer True
Your Answer False
Select The Blank
Question Even after liberalisation of exchange controls, the Euro sterling market remained volatile because of uncertainties in UK and gyrations of sterling against major ________ countries Correct Answer OECD Your Answer OECD
Match The Following
6
Question Correct Answer Your Answer
Issues linked with LIBOR,LIBID,LIMEAN FRNs FRNs Issue of bonds without fixed rate of interest, linked to short term interest rate in the global market FloatingRate Note FloatingRate Note
Issue of loans internationally,through arranger, underwriter,co manager, for a large amount for sharing risk of lending Syndicated Loans Syndicated Loans
Equity issues in the foreign markets either as direct investments or portfolio investments. American or Global Depository Receipts American or Global Depository Receipts
Bottom of Form
Multiple Choice Multiple Answer
Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market
Your Answer Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates
Select The Blank Question ________ is the agency of ICC which deals with the maritime crime. Correct Answer International Maritime Bureau
Your Answer International Maritime Bureau
Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ? Correct Answer Buffer Stock Facility Your Answer Buffer Stock Facility
True/False
Question Cross currency forward contract is not meaningful if original contract is in Rupees to USD Correct Answer True
Your Answer True
Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option? Correct Answer The exercise or strike price, the amount , The expiration date and time, the method of payment
Your Answer The exercise or strike price, the amount , The expiration date and time, the method of payment , The Market report of the exchange which trades the option
Multiple Choice Single Answer Question Which is the most actively traded currency in the international market today? Correct Answer US Dollar
Your Answer US Dollar
Match The Following Question Correct Answer Your Answer
7
Intolerable risk Drop the investment project Drop the investment project
Country risk analysis Cost of evluation does not justify analysis Cost of evluation does not justify analysis Stock market analysis Banks are ahead Factors' values
Weightages % Factors' values 100% of total
Select The Blank Question Global capital market can be understood from the study of ________.
Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the
country
Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :- Correct Answer Monday Your Answer Monday
Multiple Choice Single Answer
Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer Other managed Floating Your Answer Pegged to Single currency
Match The Following Question Correct Answer Your Answer
Maturity of future Time when actual commodity is delivered Last date of exercising option
Note issuance facility Euronotes Euronotes Bearer security issued in currency other than that of the country of issue Eurobonds Eurobonds
Margin on future Peformance bond or security deposit Peformance bond or security deposit
True/False
Question Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument. Correct Answer False
Your Answer False
True/False Question The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos. Correct Answer True
Your Answer True
Multiple Choice Multiple Answer Question What are margins, with reference to futures market?
8
Correct Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts
Your Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts
Multiple Choice Single Answer Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer USD 1 trillion
Your Answer USD 1 trillion
Multiple Choice Single Answer Question NIF is basically an agreement :- Correct Answer By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers
Your Answer Which enables the investor to market the same in the secondary market
Multiple Choice Single Answer Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992?
Correct Answer USD 275 Billion Your Answer USD 275 Billion
Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad
Your Answer Preshipment credit up to six months for construction and turnkey projects abroad
Select The Blank Question Over the years ________has been the most widely accepted currency in international capital market. Correct Answer American Dollar
Your Answer American Dollar
Select The Blank Question As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily.
Correct Answer Economies Your Answer Currencies
Multiple Choice Single Answer Question Which currency is traded in one leg of about 70% of the world's transactions? Correct Answer US Dollar
Your Answer US Dollar
Select The Blank Question ________ is the acid test for events to be included in country risk. Correct Answer Control by Government' Your Answer Recurrence
Select The Blank
Question The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________. Correct Answer Brussels Your Answer Brussels
9
Multiple Choice Single Answer Question What is Risk Syndication facility?
Correct Answer Sharing of risk of non payment by supplier Your Answer Sharing risk of Non payment by the Syndicate of Banks giving loans
True/False Question If ERD > IRD hen exporter should availa Rupee finance Correct Answer True
Your Answer True
Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :- Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country
Your Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country
Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts?
Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
True/False
Question Funding Options in domestic yen market are Futures, FRAs, Call and put options. Correct Answer True Your Answer True
True/False Question There is no difference between CIP and CIF contracts except the mode of
transportation. Correct Answer True Your Answer True
Multiple Choice Single Answer
Question Financial management is complex process for Correct Answer Companies which have international trade Your Answer Companies which have international trade
Select The Blank Question When an Indian Company earns at least 50% of its average turnover from a
particular activity then that activity is considered as ________. Correct Answer Core activity Your Answer Primary activity
Select The Blank Question A Credit can be a confirmed credit only if it is also ________.
Correct Answer An Irrevocable credit Your Answer An Irrevocable credit
True/False Question The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total.
Correct Answer False
10
Your Answer False
Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is
the offered rate for Rs? Correct Answer USD 1=Rs 50.5000 Your Answer USD 1=Rs 50.5000
Multiple Choice Multiple Answer Question Export finance
Correct Answer Preshipment credit , Post shipment credit , Duty Draw back Your Answer Preshipment credit , Post shipment credit , Buyers credit
Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer Which are convertible , Which have liquidity confirmed in Euro market operations
Your Answer Which are convertible , Which have liquidity confirmed in Euro market operations , Which have greater intrinsic value
Multiple Choice Multiple Answer Question What are the functions of Asian Development Bank?
Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Multiple Choice Multiple Answer
Question What does the word '"Tombstone" stand for? Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently
floated issue
Select The Blank Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________.
Correct Answer Euro Commercial Papers Your Answer Euro Commercial Papers
Multiple Choice Single Answer Question Why are various methods of financial analysis used for assessing a cross border project ?
Correct Answer To weed out unviable projects and rank profitable ones Your Answer To weed out unviable projects and rank profitable ones
Multiple Choice Single Answer Question Examples of hedge are: Correct Answer Buy when you are having short position
Your Answer Buy when you are having short position
Multiple Choice Multiple Answer Question What is the effect of cross currency option on the customer? Correct Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies
11
Your Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies
Select The Blank
Question Forward margin makes a currency cheaper then the currency is at ________. Correct Answer Discount Your Answer Discount
Multiple Choice Single Answer Question Why does a person need protection from unfavourable movement of exchange rate?
Correct Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Your Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit
Multiple Choice Single Answer Question The capital market is said to be volatile when Correct Answer Prices of capital market instruments change and are expected to change drastically
Your Answer Prices of capital market instruments change and are expected to change drastically
True/False Question JV means Joint venture and WOS means World of Security. Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent
Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed
Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
True/False Question Out of 15 member countries in European Union 12 countries commiteed themselves for a single currency. Correct Answer False
Your Answer False
True/False
Question The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total. Correct Answer False Your Answer False
Select The Blank
Question A Credit can be a confirmed credit only if it is also ________. Correct Answer An Irrevocable credit Your Answer An Irrevocable credit
Match The Following Question Correct Answer Your Answer
12
Intolerable risk Drop the investment project Drop the investment project
Country risk analysis Cost of evluation does not justify analysis Cost of evluation does not justify analysis
Stock market analysis Banks are ahead Banks are ahead Weightages % Factors' values Factors' values
Select The Blank
Question Over the years ________has been the most widely accepted currency in international capital market. Correct Answer American Dollar
Your Answer American Dollar
Multiple Choice Single Answer Question What is the meaning of a country risk? Correct Answer Risk of events in a particular country which may cause loss to a person dealing with that country
Your Answer Risk of events in a particular country which may cause loss to a person dealing with that country
Multiple Choice Multiple Answer Question Which common details will be available in any bill of Lading? Correct Answer Names of consigner, consignee , The port of loading and unloading, contract of
shipment Your Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment
Multiple Choice Single Answer
Question What help does EXIM Bank provide under the scheme 'Direct Financial assistance to exporters'? Correct Answer Funds are provided under deferred payment terms to Indian exporter for credit to foreign buyer
Your Answer Funds are provided under deferred payment terms to Indian exporter for credit to foreign buyer
Match The Following Question Correct Answer Your Answer
PP Form Export Declaration form Export Declaration form Health Certificate Fumigation certificate Fumigation certificate
Certificate of Inspection As per importers requirement As per importers requirement Certifiate of Origin Export Promotion Council Export Promotion Council
Select The Blank Question Even after liberalisation of exchange controls, the Euro sterling market remained volatile because of uncertainties in UK and gyrations of sterling against major ________ countries
Correct Answer OECD Your Answer OECD
13
Multiple Choice Single Answer Question How many INCOTERMS are there in "Departure" Group? Correct Answer One
Your Answer Two
Multiple Choice Single Answer Question What is a bill of lading? Correct Answer Transport document representing movement of goods by water. Your Answer Transport document representing movement of goods by water.
True/False
Question The American Dollar market comprises of the domestic segment of USD the offshore segment of USD. Correct Answer True Your Answer True
Select The Blank
Question The creditworthiness of the futures seller and the futures buyer is ________ because of the presence of the Futures exchange. Correct Answer Irrelevant
Your Answer Irrelevant
Multiple Choice Single Answer
Question What was the collective assessment of International financial market about the country risk of many cnuntries in the last decade? Correct Answer Whatever it was, was disastrously wrong.
Your Answer Whatever it was, was disastrously wrong.
Multiple Choice Multiple Answer Question How is the entry into any conuntry's money market or capital market is restricted? Correct Answer Because of different tax systems , Because of different credit standards Your Answer Because of different tax systems , Because of different credit standards
True/False
Question Till August 1994 India was following the Indirect Methodof Rate quotation. Correct Answer False Your Answer True
Select The Blank Question In Indian interbank market forward rates are generally quoted on the basis of
________. Correct Answer Calendar month Your Answer Calendar month
Select The Blank
Question Rupee was liberalised on ________ account in 1993, and on current account in 1994. Correct Answer Trade Your Answer Trade
Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92?
Correct Answer Other managed Floating Your Answer Other managed Floating
14
Multiple Choice Multiple Answer Question Which of these are considered as miscellaneous documents? Correct Answer Packing list , Weight certificate
Your Answer Packing list , Weight certificate
True/False Question Funding Options in domestic yen market are Futures, FRAs, Call and put options. Correct Answer True Your Answer True
Select The Blank
Question ECGC provides cover to an Indian contractor for construction work abroad under ________. Correct Answer Construction works policy Your Answer Construction works policy
Multiple Choice Single Answer
Question Equity can be raised internationallly by a company through :- Correct Answer Fund raising, underwriting, hedging , arbitration operations Your Answer Fund raising, underwriting, hedging , arbitration operations
Multiple Choice Single Answer Question How many Countries participated in the third survey on Foreign Exchange,
coordinated by BIS in 1992? Correct Answer 26 Your Answer 26
True/False
Question In red clause credit some clauses are printed in Red ink. Correct Answer True Your Answer True
True/False Question Prior approval of RBI is needed for payment of all imports.
Correct Answer False Your Answer True
Multiple Choice Multiple Answer Question The factors which affect the performance of an option are:- Correct Answer Underlying asset price , Time before expiration, rate of interest
Your Answer Underlying asset price , Time before expiration, rate of interest
Multiple Choice Single Answer Question What is the immediate cause for the growth of futures and options in the last two decades?
Correct Answer Increase in volatile trading conditions Your Answer Management of external risk
Select The Blank Question For setting up joint ventures abroad or equity participation abroad, EXIM bank provides funds under ________ Scheme.
Correct Answer Overseas investment facility Your Answer Overseas investment facility
15
Select The Blank Question To make the export more competitive and remunerative, the Indian Govt extends ________ facility.
Correct Answer Cash Incentives Your Answer Advance against cash incentives
Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS
maximum $ 100 million or equivalent Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent
Multiple Choice Multiple Answer Question External Commercial Debt market :-
Correct Answer Prevails in Domestic market of foreign country , Prevails in offshore markets Your Answer Prevails in Domestic market of foreign country , Prevails in offshore markets
Multiple Choice Single Answer Question Financial management is complex process for
Correct Answer Companies which have international trade Your Answer Companies which have international trade
Multiple Choice Multiple Answer Question What do you understand by 'Foreign Exchange Risk'? Correct Answer The change in value of currency alters the home currency value of an asset , liability,
, The change in value of currency alters the home currency value of profit, loss, or future cash flows Your Answer The change in value of currency alters the home currency value of an asset , liability, , The change in value of currency alters the home currency value of profit, loss, or future cash flows , Certainty of an event which would happen in favour of the importer/ exporter
Multiple Choice Single Answer
Question For a spot transaction carried out on Tuesday, where both centers have holiday on Wednesday, currencies will be exchanged on :- Correct Answer Thursday if it is a working day at both the centers
Your Answer Friday
Multiple Choice Single Answer
Question Which details about forward contracts do the Exchange Controls verify ? Correct Answer Particulars of cancellation of forward cover for the equivalent of USD 500,000 Your Answer Particulars of cancellation of forward cover for the equivalent of USD 500,000
True/False
Question In the forward rate quotations between two currencies, when one currency is at discount the other currency is at premium. Correct Answer True Your Answer True
Multiple Choice Multiple Answer
Question Internationally only those currencies are in demand Correct Answer Which are convertible , Which have liquidity confirmed in Euro market operations Your Answer Which are convertible , Which have liquidity confirmed in Euro market operations
Select The Blank
16
Question A Bill of exchange payable 45 days from date of shipment, is a means of ________ from seller to the buyer.
Correct Answer Credit Your Answer Credit
Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad
Your Answer Preshipment credit beyond six months for construction and turnkey projects abroad
Select The Blank Question Global capital market can be understood from the study of ________. Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
True/False Question Import finance is nomally available at rates of interest cheaper than domestic finance
rates. Correct Answer False Your Answer False
Multiple Choice Multiple Answer Question Major investors in NIF are :-
Correct Answer Commercial Banks , Non banking Finance companies , Insurance Companies Your Answer Commercial Banks , Non banking Finance companies
Select The Blank Question In mid 1992 ________ rejected the ratification of Maastricht treaty Correct Answer Denmark
Your Answer Denmark
True/False Question Indian companies are now allowed to freely invest abroad up to $1.5 million, raised through GDE or EEFC without prior permission from RBI.
Correct Answer False Your Answer True
Multiple Choice Multiple Answer Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market
Your Answer Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates
Select The Blank Question ________ is the agency of ICC which deals with the maritime crime. Correct Answer International Maritime Bureau
Your Answer International Maritime Bureau
Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ? Correct Answer Buffer Stock Facility
Your Answer Buffer Stock Facility
17
True/False Question Cross currency forward contract is not meaningful if original contract is in Rupees to USD
Correct Answer True Your Answer True
Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option? Correct Answer The exercise or strike price, the amount , The expiration date and time, the
method of payment Your Answer The exercise or strike price, the amount , The expiration date and time, the method of payment , The Market report of the exchange which trades the option
Multiple Choice Single Answer Question Which is the most actively traded currency in the international market today?
Correct Answer US Dollar Your Answer US Dollar
Match The Following Question Correct Answer Your Answer
Intolerable risk Drop the investment project Drop the investment project Country risk analysis Cost of evluation does not justify analysis Cost of evluation does not
justify analysis Stock market analysis Banks are ahead Factors' values
Weightages % Factors' values 100% of total
Select The Blank Question Global capital market can be understood from the study of ________.
Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Multiple Choice Single Answer
Question For a spot transaction carried out on Thursday, currencies will be exchanged on :- Correct Answer Monday Your Answer Monday
Multiple Choice Single Answer
Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer Other managed Floating
Your Answer Pegged to Single currency
Match The Following Question Correct Answer Your Answer Maturity of future Time when actual commodity is delivered Last date of exercising
option
18
Note issuance facility Euronotes Euronotes
Bearer security issued in currency other than that of the country of issue Eurobonds Eurobonds Margin on future Peformance bond or security deposit Peformance bond or
security deposit
True/False Question Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument.
Correct Answer False Your Answer False
True/False Question The Prominent non banking financial institutions participating in the FOREX
markets are Pension funds, mutual funds, insurance Cos. Correct Answer True Your Answer True
Multiple Choice Multiple Answer Question What are margins, with reference to futures market?
Correct Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Your Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts
Multiple Choice Single Answer
Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer USD 1 trillion
Your Answer USD 1 trillion
Multiple Choice Single Answer Question NIF is basically an agreement :- Correct Answer By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers
Your Answer Which enables the investor to market the same in the secondary market
Multiple Choice Single Answer Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion
Your Answer USD 275 Billion
Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects
abroad Your Answer Preshipment credit up to six months for construction and turnkey projects abroad
Select The Blank Question Over the years ________has been the most widely accepted currency in
international capital market.
19
Correct Answer American Dollar Your Answer American Dollar
Select The Blank
Question As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily. Correct Answer Economies Your Answer Currencies
Multiple Choice Single Answer
Question Which currency is traded in one leg of about 70% of the world's transactions? Correct Answer US Dollar Your Answer US Dollar
Select The Blank Question ________ is the acid test for events to be included in country risk.
Correct Answer Control by Government' Your Answer Recurrence
Select The Blank Question The Trans European Automated Real Time Gross Settlement Express Transfer is
popular in ________. Correct Answer Brussels Your Answer Brussels
Multiple Choice Single Answer Question What is Risk Syndication facility?
Correct Answer Sharing of risk of non payment by supplier Your Answer Sharing risk of Non payment by the Syndicate of Banks giving loans
True/False Question If ERD > IRD hen exporter should availa Rupee finance Correct Answer True
Your Answer True
Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :- Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country
Your Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country
Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts?
Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
True/False
Question Funding Options in domestic yen market are Futures, FRAs, Call and put options. Correct Answer True Your Answer True
True/False
20
Question There is no difference between CIP and CIF contracts except the mode of transportation.
Correct Answer True Your Answer True
Multiple Choice Single Answer Question Financial management is complex process for Correct Answer Companies which have international trade
Your Answer Companies which have international trade
Select The Blank Question When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________. Correct Answer Core activity
Your Answer Primary activity
Select The Blank Question A Credit can be a confirmed credit only if it is also ________. Correct Answer An Irrevocable credit
Your Answer An Irrevocable credit
True/False Question The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total. Correct Answer False
Your Answer False
Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs? Correct Answer USD 1=Rs 50.5000
Your Answer USD 1=Rs 50.5000
Multiple Choice Multiple Answer Question Export finance Correct Answer Preshipment credit , Post shipment credit , Duty Draw back
Your Answer Preshipment credit , Post shipment credit , Buyers credit
Multiple Choice Multiple Answer
Question Internationally only those currencies are in demand Correct Answer Which are convertible , Which have liquidity confirmed in Euro market operations Your Answer Which are convertible , Which have liquidity confirmed in Euro market operations
, Which have greater intrinsic value
Multiple Choice Multiple Answer Question What are the functions of Asian Development Bank? Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of
recently floated issue
21
Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Select The Blank
Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Correct Answer Euro Commercial Papers Your Answer Euro Commercial Papers
Multiple Choice Single Answer
Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones Your Answer To weed out unviable projects and rank profitable ones
Multiple Choice Single Answer
Question Examples of hedge are: Correct Answer Buy when you are having short position Your Answer Buy when you are having short position
Multiple Choice Multiple Answer
Question What is the effect of cross currency option on the customer? Correct Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies Your Answer He gets the flexibility to exposure , He is exposed to additional risk of movement
of rates between 3 currencies
Select The Blank Question Forward margin makes a currency cheaper then the currency is at ________. Correct Answer Discount Your Answer Discount
Multiple Choice Single Answer
Question Why does a person need protection from unfavourable movement of exchange rate? Correct Answer Unfavourable fluctuations in exchange rate can wipe out the normal business
profit Your Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit
Multiple Choice Single Answer Question The capital market is said to be volatile when
Correct Answer Prices of capital market instruments change and are expected to change drastically Your Answer Prices of capital market instruments change and are expected to change drastically
True/False
Question JV means Joint venture and WOS means World of Security. Correct Answer False Your Answer False
Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad?
22
Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent
Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer Question Which functions does the Bill of Lading serve? Correct Answer It is a document of title to goods., It is receipt of goods
Your Answer It is a document of title to goods. ,It is receipt of goods Multiple Choice Single Answer
Question A Bank quotes interest rate of 9.50/10.00for six months dollar deposit, here the bid rate is :- Correct Answer 9.50% P.A. Your Answer 9.50% P.A.
Multiple Choice Single Answer Question What is Sovereign Risk? Correct Answer Risk of lending to the governmentof a country
Your Answer Risk of lending to the government of acountry Multiple Choice Single Answer Question How does ICC help poor countries?
Correct Answer Attract Foreign Direct investments togeather with UNCTAD Your Answer Attract Foreign Direct investments togeather with UNCTAD Multiple Choice Multiple Answer
Question As per BIS, recovery from the recent crisis in global capital market was mainly due to Correct Answer Rapid and appropriate policy response in US and other countries , Increase in Foreign Direct Investments , free flow of credit
Your Answer Rapid and appropriate policy response in US and other countries , Increase in Foreign DirectInvestments , free flow of credit True/False
Question Out of 15 member countries in European Union 12 countries commiteed themselves for a single currency. Correct Answer False
Your Answer True True/False Question In red clause credit some clauses are printed in Red ink.
Correct Answer True Your Answer True True/False
Question Transfer of funds for investment abroad is allowed freely. Correct Answer True Your Answer False
Select The Blank Question EEFC account holder is allowed to have ________ facility. Correct Answer Cheque book and nomination
Your Answer Credit card, safe custody, safe deposit locker without any fee Select The Blank
Question Fixed interest rate Eurobond without the option to convert to equity is known as ________. Correct Answer Straight Debt Your Answer Interest rate swap
23
True/False
Question An Indian importing goods from USA pays dollars in India. Correct Answer False Your Answer True
Match The Following Question Correct Answer Your Answer PP Form Export Declaration form Export Declaration form
Health Certificate Fumigation certificate Export Declaration form Certificate of Inspection As per importers requirement Export Declaration form Certifiate of Origin Export Promotion Council Export Declaration form
Multiple Choice Multiple Answer Question For issuing a Documentary credit The applicant is required to provide to the issuing bank details about
Correct Answer The purchase-sales contract, the mode of payment, the tenor of payment , The documents required, the names of authorities who would issue the documents Your Answer The purchase-sales contract, the mode of payment, the tenor of payment , The track
record of the buyer and seller Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :-
Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Your Answer It is an undertaking given on behalf of a certain person to another person in different country , It is a stamped agreement and is not valid unless it is signed by the issuer
True/False Question CFR = FOB plus freight paid by seller + insurance paid by seller.
Correct Answer False Your Answer True Select The Blank
Question Even after liberalization of exchange controls, the Euro sterling market remained volatile because of uncertainties in UK and gyrations of sterling against major ________ countries Correct Answer OECD
Your Answer OPEC True/False Question Integrated branches of Commercial banks handle forex transactions as well as options, swaps,
futures, arbitrage operations Correct Answer True Your Answer True
Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ? Correct Answer Buffer Stock Facility
Your Answer Supplemental Reserve Policy Multiple Choice Multiple Answer Question What are the sources of raising funds for exports?
Correct Answer Suppliers credit , Forfaiting Your Answer Suppliers credit , Forfaiting , Buyers credit , Foreign currency or Rupee finance
True/False Question Normally the forward contracts are booked for making huge profits. Correct Answer False
24
Your Answer False
True/False Question Head office of ICC is in Paris because of its First President Eliance Clementel. Correct Answer True Your Answer False
Select The Blank Question A ________ Bill of lading does not specify the terms and conditions of carriage. Correct Answer Short Form
Your Answer Short Form Multiple Choice Single Answer
Question What is the volume of the world's total speculative transactions? Correct Answer Roughly 90 % of the total turnover Your Answer 70% of the total turnover
True/False Question Till August 1994 India was following the Indirect Methodof Rate quotation. Correct Answer False
Your Answer False Select The Blank Question For setting up joint ventures abroad or equity participation abroad, EXIM bank provides funds
under ________ Scheme. Correct Answer Overseas investment facility Your Answer Overseas investment facility
Multiple Choice Single Answer Question Mr P has exported goods in May 2005 and is expecting payment of Euro 25000 by the last week of Sept 2005. Give details of the forward contract he can
book :- Correct Answer He can book a sale contract any time from May 2005 till Mid Sept 2005, for Euro 25000 or less, for maturity last week of Sept. Your Answer He can book a contract for Forward Purchase, any time from May 2005 till Mid Sept 2005,
for Euro 25000 or less, for maturity last week of Sept. Select The Blank
Question In US Capital Market a Company prepares all the necessary documents in advance of the public issue under the facility known as ________. Correct Answer Shelf Registration Your Answer Shell Registration
Multiple Choice Multiple Answer Question Which common details will be available in any bill of Lading? Correct Answer Names of consigner, consignee , The port of loading and unloading, contract of
shipment Your Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment , The name of the vessel , The date of transportation and contract of transportation
Select The Blank Question Under the ________ standard the Country's Central Bank promised to buy back the currency at certain rate of Gold.
Correct Answer Gold Your Answer Interest
Select The Blank Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________.
25
Correct Answer Euro Commercial Papers Your Answer ADRs
Select The Blank Question The type of trade where a country sells orange juice in return for cars is known as ________. Correct Answer Counter Trade
Your Answer Non money trade Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts?
Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Your Answer Payment to EOUs in India for services rendered by them , Payment of Gifts of GBP 5000
per year per donor Multiple Choice Multiple Answer Question Under the liberalisation through FEMA, what can an AD offer to the clients, without the prior
permission of RBI or Government? Correct Answer Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements
Your Answer Caps and collars, and forward rate agreements , Good and competitive exchange rates and cross currency rates Multiple Choice Multiple Answer
Question Sterling Market is attractive for an international investor because Correct Answer Gilts offer higher attractive margin , Choice of issuing medium term and long term bonds Your Answer Choice of issuing medium term and long term bonds , Less controls and less formalities to
be completed , Linking of issues to currency swaps Multiple Choice Single Answer
Question Under which contracts the seller pays the import duty for the buyer? Correct Answer DDP Your Answer DDP
True/False Question PP Form is required when exports are made to any country by post parcel on value payable basis.
Correct Answer False Your Answer True Multiple Choice Multiple Answer
Question What were the immediate causes of converting the group of 5 into group of 7 and convene their meeting in late 1985? Correct Answer Many Industries in USA had become uncompetitive with imports , In USA the Trade protectionnism had increased
Your Answer Many Industries in USA had become uncompetitive with imports , In USA the Trade protectionnism had increased , The heads of G5 insisted to have a meeting , Failure of IMF to control the exchange rates
Multiple Choice Single Answer Question What are the powers of money changers? Correct Answer Purchase and sell foreign currency notes and travellers cheques
Your Answer Purchase and sell foreign currency notes and travellers cheques, give import and export finance
Multiple Choice Single Answer Question Who can open an EEFC account? Correct Answer Individuals , firms, companies, resident in India
26
Your Answer Individuals , firms, companies, resident in India
Multiple Choice Single Answer Question What is the role of ICC towards WTO? Correct Answer To provide world business recommendations to WTO Your Answer To further the cause of WTO
Match The Following Question Correct Answer Your Answer -Swap price Difference in prices of two legs of buying and selling Quoting rate for both buying and selling
a currency -Euro Market Market in Euro currencies Market in Euro currencies -Making market Quoting rate for both buying and sellinga currency Difference in prices of two legs of
buying and selling -Spread Price difference between bid and offer Maket of 'Euro'
Select The Blank Question Position in a currency is said to be ________, when sales equal purchases. Correct Answer Square
Your Answer Awkward Select The Blank Question Hotels and Airline companies are allowed to receive payments in Indian rupees from foreign
tourist without insisiting on ________. Correct Answer Encashment certificate Your Answer Encashment certificate
Multiple Choice Multiple Answer Question Why is Bill of Exchange a Quasi Negotiable Instrument? Correct Answer It represents title to goods , It is issued under Sale of Goods act
Your Answer It represents title to goods , It is issued under Transportation act , It is issued under Bill of exchange act Multiple Choice Single Answer
Question Which details about forward contracts do the Exchange Controls verify ? Correct Answer Particulars of cancellation of forward cover for the equivalent of USD 500,000 Your Answer Details of all contracts booked and cancelled beyond a specified limit
Multiple Choice Single Answer Question In the context of International economy ,the period between 1920s and 1930s is known as Correct Answer Great Depression
Your Answer Great Depression Multiple Choice Multiple Answer Question What do you understand by Commercial Risk?
Correct Answer Protracted default by the buyer, Insolvency of the buyer Your Answer Protracted default by the buyer, Insolvency of the buyer
Multiple Choice Multiple Answer Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market
intelligence cell to study and monitor developments in Forex Market Your Answer Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates
Select The Blank
27
Question ________ is the agency of ICC which deals with the maritime crime. Correct Answer International Maritime Bureau
Your Answer International Maritime Bureau
Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ? Correct Answer Buffer Stock Facility Your Answer Buffer Stock Facility
True/False
Question Cross currency forward contract is not meaningful if original contract is in Rupees to USD Correct Answer True Your Answer True
Multiple Choice Multiple Answer
Question What does a speculator accept while dealing with an option? Correct Answer The exercise or strike price, the amount , The expiration date and time, the method of payment
Your Answer The exercise or strike price, the amount , The expiration date and time, the method of payment , The Market report of the exchange which trades the option
Multiple Choice Single Answer Question Which is the most actively traded currency in the international market today? Correct Answer US Dollar
Your Answer US Dollar
Match The Following Question Correct Answer Your Answer Intolerable risk Drop the investment project Drop the investment project
Country risk analysis Cost of evluation does not justify analysis Cost of evluation does not justify analysis
Stock market analysis Banks are ahead Factors' values Weightages % Factors' values 100% of total
Select The Blank Question Global capital market can be understood from the study of ________. Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :-
Correct Answer Monday Your Answer Monday
Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer Other managed Floating
Your Answer Pegged to Single currency
28
Match The Following Question Correct Answer Your Answer
Maturity of future Time when actual commodity is delivered Last date of exercising option Note issuance facility Euronotes Euronotes
Bearer security issued in currency other than that of the country of issue Eurobonds Eurobonds Margin on future Peformance bond or security deposit Peformance bond or
security deposit
True/False Question Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable
instrument. Correct Answer False Your Answer False
True/False Question The Prominent non banking financial institutions participating in the FOREX markets are
Pension funds, mutual funds, insurance Cos. Correct Answer True Your Answer True
Multiple Choice Multiple Answer Question What are margins, with reference to futures market?
Correct Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Your Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency
for honouring contracts
Multiple Choice Single Answer Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer USD 1 trillion Your Answer USD 1 trillion
Multiple Choice Single Answer
Question NIF is basically an agreement :- Correct Answer By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers Your Answer Which enables the investor to market the same in the secondary market
Multiple Choice Single Answer
Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion
Your Answer USD 275 Billion
Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad Your Answer Preshipment credit up to six months for construction and turnkey projects abroad
29
Select The Blank Question Over the years ________has been the most widely accepted currency in international capital market.
Correct Answer American Dollar Your Answer American Dollar
Select The Blank Question As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily.
Correct Answer Economies Your Answer Currencies
Multiple Choice Single Answer Question Which currency is traded in one leg of about 70% of the world's transactions? Correct Answer US Dollar
Your Answer US Dollar
Select The Blank Question ________ is the acid test for events to be included in country risk. Correct Answer Control by Government'
Your Answer Recurrence
Select The Blank
Question The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________. Correct Answer Brussels
Your Answer Brussels
Multiple Choice Single Answer Question What is Risk Syndication facility? Correct Answer Sharing of risk of non payment by supplier Your Answer Sharing risk of Non payment by the Syndicate of Banks giving loans
True/False
Question If ERD > IRD hen exporter should availa Rupee finance Correct Answer True Your Answer True
Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :-
Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Your Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an
undertaking given on behalf of a certain person to another person in different country
Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
True/False Question Funding Options in domestic yen market are Futures, FRAs, Call and put options.
30
Correct Answer True Your Answer True
True/False
Question There is no difference between CIP and CIF contracts except the mode of transportation. Correct Answer True Your Answer True
Multiple Choice Single Answer
Question Financial management is complex process for Correct Answer Companies which have international trade Your Answer Companies which have international trade
Select The Blank Question When an Indian Company earns at least 50% of its average turnover from a particular
activity then that activity is considered as ________. Correct Answer Core activity Your Answer Primary activity
Select The Blank
Question A Credit can be a confirmed credit only if it is also ________. Correct Answer An Irrevocable credit Your Answer An Irrevocable credit
True/False Question The volume of trading of Derivatives in the world trade market is growing but still only
5% of the total. Correct Answer False Your Answer False
Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the
offered rate for Rs? Correct Answer USD 1=Rs 50.5000 Your Answer USD 1=Rs 50.5000
Multiple Choice Multiple Answer Question Export finance
Correct Answer Preshipment credit , Post shipment credit , Duty Draw back Your Answer Preshipment credit , Post shipment credit , Buyers credit
Multiple Choice Multiple Answer Question Internationally only those currencies are in demand
Correct Answer Which are convertible , Which have liquidity confirmed in Euro market operations Your Answer Which are convertible , Which have liquidity confirmed in Euro market operations , Which have greater intrinsic value
Multiple Choice Multiple Answer Question What are the functions of Asian Development Bank?
Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
31
Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for?
Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Select The Blank
Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Correct Answer Euro Commercial Papers Your Answer Euro Commercial Papers
Multiple Choice Single Answer
Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones
Your Answer To weed out unviable projects and rank profitable ones
Multiple Choice Single Answer Question Examples of hedge are: Correct Answer Buy when you are having short position Your Answer Buy when you are having short position
Multiple Choice Multiple Answer
Question What is the effect of cross currency option on the customer? Correct Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies Your Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of
rates between 3 currencies
Select The Blank Question Forward margin makes a currency cheaper then the currency is at ________. Correct Answer Discount
Your Answer Discount
Multiple Choice Single Answer Question Why does a person need protection from unfavourable movement of exchange rate? Correct Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Your Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit
Multiple Choice Single Answer
Question The capital market is said to be volatile when Correct Answer Prices of capital market instruments change and are expected to change drastically Your Answer Prices of capital market instruments change and are expected to change drastically
True/False Question JV means Joint venture and WOS means World of Security.
Correct Answer False Your Answer False
Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum
$ 100 million or equivalent
32
Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed
Multiple Choice Multiple Answer Question What schemes have been floated by RBI for facilitating Inter bank transactions?
Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a
market intelligence cell to study and monitor developments in Forex Market Your Answer Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates
Select The Blank Question ________ is the agency of ICC which deals with the maritime crime.
Correct Answer International Maritime Bureau Your Answer International Maritime Bureau
Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ?
Correct Answer Buffer Stock Facility Your Answer Buffer Stock Facility
True/False Question Cross currency forward contract is not meaningful if original contract is in Rupees to USD
Correct Answer True Your Answer True
Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option? Correct Answer The exercise or strike price, the amount , The expiration date and time, the method
of payment Your Answer The exercise or strike price, the amount , The expiration date and time, the method of payment , The Market report of the exchange which trades the option
Multiple Choice Single Answer
Question Which is the most actively traded currency in the international market today? Correct Answer US Dollar Your Answer US Dollar
Match The Following Question Correct Answer Your Answer
Intolerable risk Drop the investment project Drop the investment project Country risk analysis Cost of evluation does not justify analysis Cost of evluation does not
justify analysis Stock market analysis Banks are ahead Factors' values
Weightages % Factors' values 100% of total
Select The Blank Question Global capital market can be understood from the study of ________.
33
Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :- Correct Answer Monday
Your Answer Monday
Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer Other managed Floating Your Answer Pegged to Single currency
Match The Following
Question Correct Answer Your Answer Maturity of future Time when actual commodity is delivered Last date of exercising
option Note issuance facility Euronotes Euronotes
Bearer security issued in currency other than that of the country of issue Eurobonds Eurobonds Margin on future Peformance bond or security deposit Peformance bond or security deposit
True/False Question Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument.
Correct Answer False Your Answer False
True/False Question The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos.
Correct Answer True Your Answer True
Multiple Choice Multiple Answer Question What are margins, with reference to futures market? Correct Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures
solvency for honouring contracts Your Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts
Multiple Choice Single Answer
Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer USD 1 trillion Your Answer USD 1 trillion
Multiple Choice Single Answer Question NIF is basically an agreement :-
34
Correct Answer By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers
Your Answer Which enables the investor to market the same in the secondary market
Multiple Choice Single Answer Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion
Your Answer USD 275 Billion
Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad Your Answer Preshipment credit up to six months for construction and turnkey projects abroad
Select The Blank
Question Over the years ________has been the most widely accepted currency in international capital market. Correct Answer American Dollar
Your Answer American Dollar
Select The Blank Question As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily. Correct Answer Economies
Your Answer Currencies
Multiple Choice Single Answer Question Which currency is traded in one leg of about 70% of the world's transactions? Correct Answer US Dollar Your Answer US Dollar
Select The Blank
Question ________ is the acid test for events to be included in country risk. Correct Answer Control by Government' Your Answer Recurrence
Select The Blank Question The Trans European Automated Real Time Gross Settlement Express Transfer is
popular in ________. Correct Answer Brussels Your Answer Brussels
Multiple Choice Single Answer
Question What is Risk Syndication facility? Correct Answer Sharing of risk of non payment by supplier Your Answer Sharing risk of Non payment by the Syndicate of Banks giving loans
True/False Question If ERD > IRD hen exporter should availa Rupee finance
Correct Answer True Your Answer True
Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :-
35
Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country
Your Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country
Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad ,
Payment to EOUs in India for services rendered by them Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
True/False Question Funding Options in domestic yen market are Futures, FRAs, Call and put options.
Correct Answer True Your Answer True
True/False Question There is no difference between CIP and CIF contracts except the mode of
transportation. Correct Answer True Your Answer True
Multiple Choice Single Answer Question Financial management is complex process for
Correct Answer Companies which have international trade Your Answer Companies which have international trade
Select The Blank Question When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________.
Correct Answer Core activity Your Answer Primary activity
Select The Blank Question A Credit can be a confirmed credit only if it is also ________.
Correct Answer An Irrevocable credit Your Answer An Irrevocable credit
True/False Question The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total.
Correct Answer False Your Answer False
Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs?
Correct Answer USD 1=Rs 50.5000 Your Answer USD 1=Rs 50.5000
Multiple Choice Multiple Answer Question Export finance Correct Answer Preshipment credit , Post shipment credit , Duty Draw back
Your Answer Preshipment credit , Post shipment credit , Buyers credit
36
Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer Which are convertible , Which have liquidity confirmed in Euro market operations
Your Answer Which are convertible , Which have liquidity confirmed in Euro market operations , Which have greater intrinsic value
Multiple Choice Multiple Answer Question What are the functions of Asian Development Bank? Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised
in world capital market Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for?
Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently
floated issue
Select The Blank Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Correct Answer Euro Commercial Papers
Your Answer Euro Commercial Papers
Multiple Choice Single Answer Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones
Your Answer To weed out unviable projects and rank profitable ones
Multiple Choice Single Answer Question Examples of hedge are: Correct Answer Buy when you are having short position
Your Answer Buy when you are having short position
Multiple Choice Multiple Answer
Question What is the effect of cross currency option on the customer? Correct Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies
Your Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies
Select The Blank Question Forward margin makes a currency cheaper then the currency is at ________. Correct Answer Discount
Your Answer Discount
Multiple Choice Single Answer Question Why does a person need protection from unfavourable movement of exchange rate? Correct Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Your Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit
37
Multiple Choice Single Answer Question The capital market is said to be volatile when
Correct Answer Prices of capital market instruments change and are expected to change drastically Your Answer Prices of capital market instruments change and are expected to change drastically
True/False Question JV means Joint venture and WOS means World of Security. Correct Answer False
Your Answer False
Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent
Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed
Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently
floated issue Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
True/False Question Out of 15 member countries in European Union 12 countries commiteed themselves for a single currency.
Correct Answer False Your Answer False
True/False
Question The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total. Correct Answer False Your Answer False
Select The Blank
Question A Credit can be a confirmed credit only if it is also ________. Correct Answer An Irrevocable credit Your Answer An Irrevocable credit
Match The Following
Question Correct Answer Your Answer Intolerable risk Drop the investment project Drop the investment project
Country risk analysis Cost of evluation does not justify analysis Cost of evluation does not justify analysis
Stock market analysis Banks are ahead Banks are ahead Weightages % Factors' values Factors' values
Select The Blank
38
Question Over the years ________has been the most widely accepted currency in international capital market.
Correct Answer American Dollar Your Answer American Dollar
Multiple Choice Single Answer Question What is the meaning of a country risk? Correct Answer Risk of events in a particular country which may cause loss to a person dealing with
that country Your Answer Risk of events in a particular country which may cause loss to a person dealing with that country
Multiple Choice Multiple Answer Question Which common details will be available in any bill of Lading?
Correct Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment Your Answer Names of consigner, consignee , The port of loading and unloading, contract of
shipment
Multiple Choice Single Answer Question What help does EXIM Bank provide under the scheme 'Direct Financial assistance to exporters'? Correct Answer Funds are provided under deferred payment terms to Indian exporter for credit to
foreign buyer Your Answer Funds are provided under deferred payment terms to Indian exporter for credit to foreign buyer
Match The Following Question Correct Answer Your Answer
PP Form Export Declaration form Export Declaration form
Health Certificate Fumigation certificate Fumigation certificate Certificate of Inspection As per importers requirement As per importers requirement
Certifiate of Origin Export Promotion Council Export Promotion Council
Select The Blank Question Even after liberalisation of exchange controls, the Euro sterling market remained volatile because of uncertainties in UK and gyrations of sterling against major ________ countries
Correct Answer OECD Your Answer OECD
Multiple Choice Single Answer Question How many INCOTERMS are there in "Departure" Group?
Correct Answer One Your Answer Two
Multiple Choice Single Answer Question What is a bill of lading? Correct Answer Transport document representing movement of goods by water.
Your Answer Transport document representing movement of goods by water.
True/False
39
Question The American Dollar market comprises of the domestic segment of USD the offshore segment of USD.
Correct Answer True Your Answer True
Select The Blank Question The creditworthiness of the futures seller and the futures buyer is ________ because of the presence of the Futures exchange.
Correct Answer Irrelevant Your Answer Irrelevant
Multiple Choice Single Answer Question What was the collective assessment of International financial market about the country risk of many cnuntries in the last decade?
Correct Answer Whatever it was, was disastrously wrong. Your Answer Whatever it was, was disastrously wrong.
Multiple Choice Multiple Answer Question How is the entry into any conuntry's money market or capital market is restricted?
Correct Answer Because of different tax systems , Because of different credit standards Your Answer Because of different tax systems , Because of different credit standards
True/False Question Till August 1994 India was following the Indirect Methodof Rate quotation. Correct Answer False
Your Answer True
Select The Blank Question In Indian interbank market forward rates are generally quoted on the basis of ________. Correct Answer Calendar month
Your Answer Calendar month
Select The Blank Question Rupee was liberalised on ________ account in 1993, and on current account in 1994. Correct Answer Trade
Your Answer Trade
Multiple Choice Single Answer
Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer Other managed Floating Your Answer Other managed Floating
Multiple Choice Multiple Answer
Question Which of these are considered as miscellaneous documents? Correct Answer Packing list , Weight certificate Your Answer Packing list , Weight certificate
True/False Question Funding Options in domestic yen market are Futures, FRAs, Call and put options.
Correct Answer True Your Answer True
Select The Blank
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Question ECGC provides cover to an Indian contractor for construction work abroad under ________.
Correct Answer Construction works policy Your Answer Construction works policy
Multiple Choice Single Answer Question Equity can be raised internationallly by a company through :- Correct Answer Fund raising, underwriting, hedging , arbitration operations
Your Answer Fund raising, underwriting, hedging , arbitration operations
Multiple Choice Single Answer Question How many Countries participated in the third survey on Foreign Exchange, coordinated by BIS in 1992? Correct Answer 26
Your Answer 26
True/False Question In red clause credit some clauses are printed in Red ink. Correct Answer True
Your Answer True
True/False Question Prior approval of RBI is needed for payment of all imports. Correct Answer False Your Answer True
Multiple Choice Multiple Answer
Question The factors which affect the performance of an option are:- Correct Answer Underlying asset price , Time before expiration, rate of interest Your Answer Underlying asset price , Time before expiration, rate of interest
Multiple Choice Single Answer Question What is the immediate cause for the growth of futures and options in the last two
decades? Correct Answer Increase in volatile trading conditions Your Answer Management of external risk
Select The Blank Question For setting up joint ventures abroad or equity participation abroad, EXIM bank
provides funds under ________ Scheme. Correct Answer Overseas investment facility Your Answer Overseas investment facility
Select The Blank
Question To make the export more competitive and remunerative, the Indian Govt extends ________ facility. Correct Answer Cash Incentives Your Answer Advance against cash incentives
Multiple Choice Multiple Answer
Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS
maximum $ 100 million or equivalent
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Multiple Choice Multiple Answer Question External Commercial Debt market :- Correct Answer Prevails in Domestic market of foreign country , Prevails in offshore markets
Your Answer Prevails in Domestic market of foreign country , Prevails in offshore markets
Multiple Choice Single Answer Question Financial management is complex process for Correct Answer Companies which have international trade Your Answer Companies which have international trade
Multiple Choice Multiple Answer
Question What do you understand by 'Foreign Exchange Risk'? Correct Answer The change in value of currency alters the home currency value of an asset , liability, , The change in value of currency alters the home currency value of profit, loss, or future cash flows Your Answer The change in value of currency alters the home currency value of an asset , liability,
, The change in value of currency alters the home currency value of profit, loss, or future cash flows , Certainty of an event which would happen in favour of the importer/ exporter
Multiple Choice Single Answer Question For a spot transaction carried out on Tuesday, where both centers have holiday on
Wednesday, currencies will be exchanged on :- Correct Answer Thursday if it is a working day at both the centers Your Answer Friday
Multiple Choice Single Answer Question Which details about forward contracts do the Exchange Controls verify ?
Correct Answer Particulars of cancellation of forward cover for the equivalent of USD 500,000 Your Answer Particulars of cancellation of forward cover for the equivalent of USD 500,000
True/False Question In the forward rate quotations between two currencies, when one currency is at discount the other currency is at premium.
Correct Answer True Your Answer True
Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer Which are convertible , Which have liquidity confirmed in Euro market operations
Your Answer Which are convertible , Which have liquidity confirmed in Euro market operations
Select The Blank Question A Bill of exchange payable 45 days from date of shipment, is a means of ________ from seller to the buyer.
Correct Answer Credit Your Answer Credit
Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad
Your Answer Preshipment credit beyond six months for construction and turnkey projects abroad
Select The Blank Question Global capital market can be understood from the study of ________.
42
Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
True/False Question Import finance is nomally available at rates of interest cheaper than domestic finance rates.
Correct Answer False Your Answer False
Multiple Choice Multiple Answer Question Major investors in NIF are :- Correct Answer Commercial Banks , Non banking Finance companies , Insurance Companies
Your Answer Commercial Banks , Non banking Finance companies
Select The Blank Question In mid 1992 ________ rejected the ratification of Maastricht treaty Correct Answer Denmark
Your Answer Denmark
True/False Question Indian companies are now allowed to freely invest abroad up to $1.5 million, raised through GDE or EEFC without prior permission from RBI. Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market
Your Answer Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates
Select The Blank Question ________ is the agency of ICC which deals with the maritime crime. Correct Answer International Maritime Bureau
Your Answer International Maritime Bureau
Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ? Correct Answer Buffer Stock Facility Your Answer Buffer Stock Facility
True/False
Question Cross currency forward contract is not meaningful if original contract is in Rupees to USD Correct Answer True Your Answer True
Multiple Choice Multiple Answer
Question What does a speculator accept while dealing with an option? Correct Answer The exercise or strike price, the amount , The expiration date and time, the method of payment
43
Your Answer The exercise or strike price, the amount , The expiration date and time, the method of payment , The Market report of the exchange which trades the option
Multiple Choice Single Answer
Question Which is the most actively traded currency in the international market today? Correct Answer US Dollar Your Answer US Dollar
Match The Following Question Correct Answer Your Answer
Intolerable risk Drop the investment project Drop the investment project Country risk analysis Cost of evluation does not justify analysis Cost of evluation does not
justify analysis Stock market analysis Banks are ahead Factors' values
Weightages % Factors' values 100% of total
Select The Blank Question Global capital market can be understood from the study of ________.
Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Multiple Choice Single Answer
Question For a spot transaction carried out on Thursday, currencies will be exchanged on :- Correct Answer Monday
Your Answer Monday
Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer Other managed Floating
Your Answer Pegged to Single currency
Match The Following Question Correct Answer Your Answer Maturity of future Time when actual commodity is delivered Last date of exercising
option Note issuance facility Euronotes Euronotes
Bearer security issued in currency other than that of the country of issue Eurobonds Eurobonds Margin on future Peformance bond or security deposit Peformance bond or
security deposit
True/False
44
Question Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument.
Correct Answer False Your Answer False
True/False Question The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos.
Correct Answer True Your Answer True
Multiple Choice Multiple Answer Question What are margins, with reference to futures market? Correct Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures
solvency for honouring contracts Your Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts
Multiple Choice Single Answer
Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer USD 1 trillion Your Answer USD 1 trillion
Multiple Choice Single Answer
Question NIF is basically an agreement :- Correct Answer By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers Your Answer Which enables the investor to market the same in the secondary market
Multiple Choice Single Answer
Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion
Your Answer USD 275 Billion
Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad
Your Answer Preshipment credit up to six months for construction and turnkey projects abroad
Select The Blank Question Over the years ________has been the most widely accepted currency in international capital market.
Correct Answer American Dollar Your Answer American Dollar
Select The Blank Question As a result of the world wars in the 20th century the ________ of most of the
countries suffered heavily. Correct Answer Economies Your Answer Currencies
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Multiple Choice Single Answer Question Which currency is traded in one leg of about 70% of the world's transactions?
Correct Answer US Dollar Your Answer US Dollar
Select The Blank Question ________ is the acid test for events to be included in country risk. Correct Answer Control by Government'
Your Answer Recurrence
Select The Blank Question The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________. Correct Answer Brussels
Your Answer Brussels
Multiple Choice Single Answer Question What is Risk Syndication facility? Correct Answer Sharing of risk of non payment by supplier
Your Answer Sharing risk of Non payment by the Syndicate of Banks giving loans
True/False Question If ERD > IRD hen exporter should availa Rupee finance Correct Answer True Your Answer True
Multiple Choice Multiple Answer
Question The characteristics of an International documentary credit are :- Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Your Answer It is an undertaking given by the openers bank to pay certain sum of money , It
is an undertaking given on behalf of a certain person to another person in different country
Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad ,
Payment to EOUs in India for services rendered by them Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
True/False Question Funding Options in domestic yen market are Futures, FRAs, Call and put options.
Correct Answer True Your Answer True
True/False Question There is no difference between CIP and CIF contracts except the mode of transportation.
Correct Answer True Your Answer True
Multiple Choice Single Answer Question Financial management is complex process for Correct Answer Companies which have international trade
Your Answer Companies which have international trade
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Select The Blank Question When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________.
Correct Answer Core activity Your Answer Primary activity
Select The Blank Question A Credit can be a confirmed credit only if it is also ________. Correct Answer An Irrevocable credit
Your Answer An Irrevocable credit
True/False Question The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total. Correct Answer False
Your Answer False
Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs?
Correct Answer USD 1=Rs 50.5000 Your Answer USD 1=Rs 50.5000
Multiple Choice Multiple Answer Question Export finance Correct Answer Preshipment credit , Post shipment credit , Duty Draw back
Your Answer Preshipment credit , Post shipment credit , Buyers credit
Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer Which are convertible , Which have liquidity confirmed in Euro market operations Your Answer Which are convertible , Which have liquidity confirmed in Euro market operations
, Which have greater intrinsic value
Multiple Choice Multiple Answer Question What are the functions of Asian Development Bank? Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for?
Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Select The Blank
Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Correct Answer Euro Commercial Papers Your Answer Euro Commercial Papers
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Multiple Choice Single Answer Question Why are various methods of financial analysis used for assessing a cross border
project ? Correct Answer To weed out unviable projects and rank profitable ones Your Answer To weed out unviable projects and rank profitable ones
Multiple Choice Single Answer Question Examples of hedge are:
Correct Answer Buy when you are having short position Your Answer Buy when you are having short position
Multiple Choice Multiple Answer Question What is the effect of cross currency option on the customer? Correct Answer He gets the flexibility to exposure , He is exposed to additional risk of movement
of rates between 3 currencies Your Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies
Select The Blank
Question Forward margin makes a currency cheaper then the currency is at ________. Correct Answer Discount Your Answer Discount
Multiple Choice Single Answer Question Why does a person need protection from unfavourable movement of exchange
rate? Correct Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Your Answer Unfavourable fluctuations in exchange rate can wipe out the normal business
profit
Multiple Choice Single Answer Question The capital market is said to be volatile when Correct Answer Prices of capital market instruments change and are expected to change
drastically Your Answer Prices of capital market instruments change and are expected to change drastically
True/False Question JV means Joint venture and WOS means World of Security.
Correct Answer False Your Answer False
Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS
maximum $ 100 million or equivalent Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer
Question Which functions does the Bill of Lading serve? Correct Answer It is a document of title to goods., It is receipt of goods Your Answer It is a document of title to goods. ,It is receipt of goods
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Multiple Choice Single Answer
Question A Bank quotes interest rate of 9.50/10.00for six months dollar deposit, here the bid rate is :- Correct Answer 9.50% P.A. Your Answer 9.50% P.A.
Multiple Choice Single Answer Question What is Sovereign Risk? Correct Answer Risk of lending to the governmentof a country Your Answer Risk of lending to the government of acountry
Multiple Choice Single Answer Question How does ICC help poor countries?
Correct Answer Attract Foreign Direct investments togeather with UNCTAD Your Answer Attract Foreign Direct investments togeather with UNCTAD Multiple Choice Multiple Answer
Question As per BIS, recovery from the recent crisis in global capital market was mainly due to Correct Answer Rapid and appropriate policy response in US and other countries , Increase in Foreign Direct Investments , free flow of credit
Your Answer Rapid and appropriate policy response in US and other countries , Increase in Foreign DirectInvestments , free flow of credit True/False
Question Out of 15 member countries in European Union 12 countries commiteed themselves for a single currency. Correct Answer False Your Answer True
True/False Question In red clause credit some clauses are printed in Red ink.
Correct Answer True Your Answer True True/False
Question Transfer of funds for investment abroad is allowed freely. Correct Answer True Your Answer False
Select The Blank Question EEFC account holder is allowed to have ________ facility. Correct Answer Cheque book and nomination
Your Answer Credit card, safe custody, safe deposit locker without any fee Select The Blank Question Fixed interest rate Eurobond without the option to convert to equity is known as ________.
Correct Answer Straight Debt Your Answer Interest rate swap
True/False Question An Indian importing goods from USA pays dollars in India. Correct Answer False Your Answer True
Match The Following Question Correct Answer Your Answer
PP Form Export Declaration form Export Declaration form Health Certificate Fumigation certificate Export Declaration form
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Certificate of Inspection As per importers requirement Export Declaration form Certifiate of Origin Export Promotion Council Export Declaration form
Multiple Choice Multiple Answer Question For issuing a Documentary credit The applicant is required to provide to the issuing bank details about
Correct Answer The purchase-sales contract, the mode of payment, the tenor of payment , The documents required, the names of authorities who would issue the documents Your Answer The purchase-sales contract, the mode of payment, the tenor of payment , The track record of the buyer and seller
Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :-
Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Your Answer It is an undertaking given on behalf of a certain person to another person in different country , It is a stamped agreement and is not valid unless it is signed by the issuer
True/False Question CFR = FOB plus freight paid by seller + insurance paid by seller.
Correct Answer False Your Answer True Select The Blank
Question Even after liberalization of exchange controls, the Euro sterling market remained volatile because of uncertainties in UK and gyrations of sterling against major ________ countries Correct Answer OECD Your Answer OPEC
True/False Question Integrated branches of Commercial banks handle forex transactions as well as options, swaps,
futures, arbitrage operations Correct Answer True Your Answer True
Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ? Correct Answer Buffer Stock Facility
Your Answer Supplemental Reserve Policy Multiple Choice Multiple Answer Question What are the sources of raising funds for exports?
Correct Answer Suppliers credit , Forfaiting Your Answer Suppliers credit , Forfaiting , Buyers credit , Foreign currency or Rupee finance True/False
Question Normally the forward contracts are booked for making huge profits. Correct Answer False Your Answer False
True/False Question Head office of ICC is in Paris because of its First President Eliance Clementel. Correct Answer True
Your Answer False Select The Blank
Question A ________ Bill of lading does not specify the terms and conditions of carriage. Correct Answer Short Form Your Answer Short Form
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Multiple Choice Single Answer
Question What is the volume of the world's total speculative transactions? Correct Answer Roughly 90 % of the total turnover Your Answer 70% of the total turnover
True/False Question Till August 1994 India was following the Indirect Methodof Rate quotation. Correct Answer False Your Answer False
Select The Blank Question For setting up joint ventures abroad or equity participation abroad, EXIM bank provides funds
under ________ Scheme. Correct Answer Overseas investment facility Your Answer Overseas investment facility
Multiple Choice Single Answer Question Mr P has exported goods in May 2005 and is expecting payment of Euro 25000 by the last week of Sept 2005. Give details of the forward contract he can
book :- Correct Answer He can book a sale contract any time from May 2005 till Mid Sept 2005, for Euro 25000 or less, for maturity last week of Sept. Your Answer He can book a contract for Forward Purchase, any time from May 2005 till Mid Sept 2005,
for Euro 25000 or less, for maturity last week of Sept. Select The Blank Question In US Capital Market a Company prepares all the necessary documents in advance of the
public issue under the facility known as ________. Correct Answer Shelf Registration Your Answer Shell Registration
Multiple Choice Multiple Answer Question Which common details will be available in any bill of Lading? Correct Answer Names of consigner, consignee , The port of loading and unloading, contract of
shipment Your Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment , The name of the vessel , The date of transportation and contract of transportation
Select The Blank Question Under the ________ standard the Country's Central Bank promised to buy back the currency at certain rate of Gold.
Correct Answer Gold Your Answer Interest Select The Blank
Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Correct Answer Euro Commercial Papers
Your Answer ADRs Select The Blank Question The type of trade where a country sells orange juice in return for cars is known as ________.
Correct Answer Counter Trade Your Answer Non money trade
Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad ,
51
Payment to EOUs in India for services rendered by them Your Answer Payment to EOUs in India for services rendered by them , Payment of Gifts of GBP 5000
per year per donor Multiple Choice Multiple Answer Question Under the liberalisation through FEMA, what can an AD offer to the clients, without the prior
permission of RBI or Government? Correct Answer Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements Your Answer Caps and collars, and forward rate agreements , Good and competitive exchange rates
and cross currency rates Multiple Choice Multiple Answer
Question Sterling Market is attractive for an international investor because Correct Answer Gilts offer higher attractive margin , Choice of issuing medium term and long term bonds Your Answer Choice of issuing medium term and long term bonds , Less controls and less formalities to
be completed , Linking of issues to currency swaps Multiple Choice Single Answer
Question Under which contracts the seller pays the import duty for the buyer? Correct Answer DDP Your Answer DDP
True/False Question PP Form is required when exports are made to any country by post parcel on value payable basis. Correct Answer False
Your Answer True Multiple Choice Multiple Answer
Question What were the immediate causes of converting the group of 5 into group of 7 and convene their meeting in late 1985? Correct Answer Many Industries in USA had become uncompetitive with imports , In USA the Trade protectionnism had increased
Your Answer Many Industries in USA had become uncompetitive with imports , In USA the Trade protectionnism had increased , The heads of G5 insisted to have a meeting , Failure of IMF to control the exchange rates
Multiple Choice Single Answer Question What are the powers of money changers? Correct Answer Purchase and sell foreign currency notes and travellers cheques
Your Answer Purchase and sell foreign currency notes and travellers cheques, give import and export finance Multiple Choice Single Answer
Question Who can open an EEFC account? Correct Answer Individuals , firms, companies, resident in India Your Answer Individuals , firms, companies, resident in India
Multiple Choice Single Answer Question What is the role of ICC towards WTO? Correct Answer To provide world business recommendations to WTO
Your Answer To further the cause of WTO Match The Following
Question Correct Answer Your Answer -Swap price Difference in prices of two legs of buying and selling Quoting rate for both buying and selling a currency
52
-Euro Market Market in Euro currencies Market in Euro currencies -Making market Quoting rate for both buying and sellinga currency Difference in prices of two legs of
buying and selling -Spread Price difference between bid and offer Maket of 'Euro'
Select The Blank Question Position in a currency is said to be ________, when sales equal purchases. Correct Answer Square Your Answer Awkward
Select The Blank Question Hotels and Airline companies are allowed to receive payments in Indian rupees from foreign
tourist without insisiting on ________. Correct Answer Encashment certificate Your Answer Encashment certificate
Multiple Choice Multiple Answer Question Why is Bill of Exchange a Quasi Negotiable Instrument? Correct Answer It represents title to goods , It is issued under Sale of Goods act
Your Answer It represents title to goods , It is issued under Transportation act , It is issued under Bill of exchange act Multiple Choice Single Answer
Question Which details about forward contracts do the Exchange Controls verify ? Correct Answer Particulars of cancellation of forward cover for the equivalent of USD 500,000 Your Answer Details of all contracts booked and cancelled beyond a specified limit
Multiple Choice Single Answer Question In the context of International economy ,the period between 1920s and 1930s is known as Correct Answer Great Depression
Your Answer Great Depression Multiple Choice Multiple Answer Question What do you understand by Commercial Risk?
Correct Answer Protracted default by the buyer, Insolvency of the buyer Your Answer Protracted default by the buyer, Insolvency of the buyer
Multiple Choice Multiple Answer Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market
intelligence cell to study and monitor developments in Forex Market Your Answer Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates
Select The Blank Question ________ is the agency of ICC which deals with the maritime crime.
Correct Answer International Maritime Bureau Your Answer International Maritime Bureau
Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ?
Correct Answer Buffer Stock Facility Your Answer Buffer Stock Facility
True/False
53
Question Cross currency forward contract is not meaningful if original contract is in Rupees to USD
Correct Answer True Your Answer True
Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option? Correct Answer The exercise or strike price, the amount , The expiration date and time, the method of
payment Your Answer The exercise or strike price, the amount , The expiration date and time, the method of payment , The Market report of the exchange which trades the option
Multiple Choice Single Answer Question Which is the most actively traded currency in the international market today?
Correct Answer US Dollar Your Answer US Dollar
Match The Following Question Correct Answer Your Answer
Intolerable risk Drop the investment project Drop the investment project Country risk analysis Cost of evluation does not justify analysis Cost of evluation does not
justify analysis Stock market analysis Banks are ahead Factors' values
Weightages % Factors' values 100% of total
Select The Blank Question Global capital market can be understood from the study of ________.
Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Multiple Choice Single Answer
Question For a spot transaction carried out on Thursday, currencies will be exchanged on :- Correct Answer Monday Your Answer Monday
Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92?
Correct Answer Other managed Floating Your Answer Pegged to Single currency
Match The Following Question Correct Answer Your Answer
Maturity of future Time when actual commodity is delivered Last date of exercising option
Note issuance facility Euronotes Euronotes Bearer security issued in currency other than that of the country of issue Eurobonds Eurobonds
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Margin on future Peformance bond or security deposit Peformance bond or
security deposit
True/False Question Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument.
Correct Answer False Your Answer False
True/False Question The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos.
Correct Answer True Your Answer True
Multiple Choice Multiple Answer Question What are margins, with reference to futures market?
Correct Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Your Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts
Multiple Choice Single Answer
Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer USD 1 trillion Your Answer USD 1 trillion
Multiple Choice Single Answer Question NIF is basically an agreement :-
Correct Answer By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers Your Answer Which enables the investor to market the same in the secondary market
Multiple Choice Single Answer
Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion Your Answer USD 275 Billion
Multiple Choice Single Answer
Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad Your Answer Preshipment credit up to six months for construction and turnkey projects abroad
Select The Blank Question Over the years ________has been the most widely accepted currency in international
capital market. Correct Answer American Dollar Your Answer American Dollar
Select The Blank Question As a result of the world wars in the 20th century the ________ of most of the countries
suffered heavily.
55
Correct Answer Economies Your Answer Currencies
Multiple Choice Single Answer
Question Which currency is traded in one leg of about 70% of the world's transactions? Correct Answer US Dollar Your Answer US Dollar
Select The Blank Question ________ is the acid test for events to be included in country risk.
Correct Answer Control by Government' Your Answer Recurrence
Select The Blank Question The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________.
Correct Answer Brussels Your Answer Brussels
Multiple Choice Single Answer Question What is Risk Syndication facility?
Correct Answer Sharing of risk of non payment by supplier Your Answer Sharing risk of Non payment by the Syndicate of Banks giving loans
True/False Question If ERD > IRD hen exporter should availa Rupee finance Correct Answer True
Your Answer True
Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :- Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country
Your Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country
Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad ,
Payment to EOUs in India for services rendered by them Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
True/False
Question Funding Options in domestic yen market are Futures, FRAs, Call and put options. Correct Answer True Your Answer True
True/False Question There is no difference between CIP and CIF contracts except the mode of
transportation. Correct Answer True Your Answer True
Multiple Choice Single Answer
56
Question Financial management is complex process for Correct Answer Companies which have international trade
Your Answer Companies which have international trade
Select The Blank Question When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________. Correct Answer Core activity
Your Answer Primary activity
Select The Blank Question A Credit can be a confirmed credit only if it is also ________. Correct Answer An Irrevocable credit Your Answer An Irrevocable credit
True/False
Question The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total. Correct Answer False
Your Answer False
Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs? Correct Answer USD 1=Rs 50.5000
Your Answer USD 1=Rs 50.5000
Multiple Choice Multiple Answer Question Export finance Correct Answer Preshipment credit , Post shipment credit , Duty Draw back Your Answer Preshipment credit , Post shipment credit , Buyers credit
Multiple Choice Multiple Answer
Question Internationally only those currencies are in demand Correct Answer Which are convertible , Which have liquidity confirmed in Euro market operations Your Answer Which are convertible , Which have liquidity confirmed in Euro market operations ,
Which have greater intrinsic value
Multiple Choice Multiple Answer
Question What are the functions of Asian Development Bank? Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently
floated issue Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Select The Blank Question Short term instruments normally issued by corporate borrowers, forhigh values, at a
discount to face value are known as ________.
57
Correct Answer Euro Commercial Papers Your Answer Euro Commercial Papers
Multiple Choice Single Answer
Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones Your Answer To weed out unviable projects and rank profitable ones
Multiple Choice Single Answer
Question Examples of hedge are: Correct Answer Buy when you are having short position Your Answer Buy when you are having short position
Multiple Choice Multiple Answer Question What is the effect of cross currency option on the customer?
Correct Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies Your Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of
rates between 3 currencies
Select The Blank Question Forward margin makes a currency cheaper then the currency is at ________. Correct Answer Discount Your Answer Discount
Multiple Choice Single Answer
Question Why does a person need protection from unfavourable movement of exchange rate? Correct Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Your Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit
Multiple Choice Single Answer Question The capital market is said to be volatile when
Correct Answer Prices of capital market instruments change and are expected to change drastically Your Answer Prices of capital market instruments change and are expected to change drastically
True/False Question JV means Joint venture and WOS means World of Security. Correct Answer False
Your Answer False
Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum
$ 100 million or equivalent Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed