3rd Sem All Pgdib

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer

Question Commercial Papers are issued by :-
Correct Answer Corporates
Your Answer RBI
Select The Blank

Question The loans under________ are based on Poverty
Reduction Strategy Paper.
Correct Answer PRGF
Your Answer PRGF

Question Treasury Bills are issued by the :-
Correct Answer RBI
Your Answer RBI
Multiple Choice Multiple Answer

Question IFCI raises its funds by way of :-
Correct Answer Issuing bonds , Borrowing from RBI , Borrowing from
IDBI
Your Answer Issuing bonds , Borrowing from RBI , Issuing shares
True/False
Question NABARD does not provide Refinance for stocking &
distribution of Chemical Fertilisers.
Correct Answer False
Your Answer True
True/False
Question Non bank financial institutions undertake fund and
non fund based activities.
Correct Answer True
Your Answer False

Question DICGC does not insure the deposits :-
Correct Answer Of foreign Governments , Of State Cooperative Banks
, Of the Central Government
Your Answer Of foreign Governments , Of State Cooperative Banks
Select The Blank

Question Development financial institutions have been
established to cater to ________ of the industrial
sector.
Correct Answer Long term financial needs
Your Answer Long term financial needs

Question The unorganised financial system comprises of :-
Correct Answer Money lenders , Indigenous bankers , Lending pawn
brokers
Your Answer Money lenders , Indigenous bankers , Lending pawn
brokers

Question Which of the following institution was set up as a
subsidy of RBI in 1964?
Correct Answer IDBI
Your Answer IDBI

Question Under Project Finance Scheme IDBI provides
assistance for :-
Correct Answer Modernisation , New Projects , Renovation
Your Answer New Projects , Renovation , Modernisation
Select The Blank

Question One of the objectives of NHB is to augment the
________ resources for the housing sector.
Correct Answer Financial
Your Answer Financial
Match The Following

Question Correct Answer Your Answer
Small Savings Chit Funds Chit Funds
Gen.Insurance NICo of India Ltd. NICo of India Ltd.
Life Insurance LIC of India Ltd LIC of India Ltd
Mutual fund UTI UTI

Question Which one of the following is a Cooperative Bank?
Correct Answer COSMOS BANK
Your Answer COSMOS BANK
True/False
Question Bank Guarantee can be Performance of financial
Guarantee.
Your Answer True

Question Credit Information report is also known as :-
Correct Answer Credit report , Banker's report , Confidential report
Your Answer Credit report , Banker's report , Confidential report
True/False
Question Most of the Indian PS Banks practice retail banking.
Correct Answer True
Your Answer False

Question Prominent Institutional Investors are :-
Correct Answer Foreign Investors(FIIs) , Corporate Treasuries ,
Mutual Funds
Your Answer Foreign Investors(FIIs) , Corporate Treasuries ,
Mutual Funds
Select The Blank
Question The price in financial markets is known as ________.
Correct Answer Rate of interest
Your Answer Rate of interest
Select The Blank

Question Financial markets are the centres that provide
facilities for buying and selling of ________.
Correct Answer Financial claims and services
Your Answer Financial claims and services

Question Treasury Bills are actually a class of :-
Correct Answer Govt.Securities
Your Answer Govt.Securities
True/False
Question IMF discourages excessive use of its resources by
imposing a surcharge on large loans.
Correct Answer True
Your Answer True

Question Initial Quantum of resources of IMF were contributed
by members according to :-
Correct Answer Quotas fixed for members
Your Answer Quotas fixed for members
Select The Blank

Question The extent of powers enjoyed by a branch depends
on the size of its ________.
Correct Answer Business
Your Answer Deposits

Question The unorganised financial system includes :-
Correct Answer Indigenous bankers
Your Answer Indigenous bankers

Question Development Financial institutions include :-
Correct Answer State financial institutions
Your Answer State financial institutions

Question Deposits per depositor per bank are secured by
DICGC up to a sum of :-
Correct Answer Rs. one lac.
Your Answer Rs. one lac.

Question The general insurance business can be :-
Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer Marine insurance , Fire insurance , Miscellaneous

Question The objective NEF Scheme of SIDBI is to provide
equity support to :-
Correct Answer New Units in tiny Sector , New Units in Small Sector ,
Existing units in tiny & small scale sector
Your Answer New Units in tiny Sector , New Units in Small Sector ,
Match The Following

CRR Primary reserve Primary reserve

requirement requirement
Bankers Bank Controlling the Controlling the
reserves of reserves of commercial
commercial banks banks
Exchange control FEMA FEMA
OMO Government securities Government securities

Question Financial institutions deal in :-
Correct Answer Financial assets
Your Answer Financial assets

Question Treasuries could be either those of the :-
Correct Answer PSUs , Private Sector Cos. , Govt.bodies
Your Answer PSUs , Private Sector Cos. , Govt.bodies

Question Long term debt instruments have a maturity of :-
Correct Answer Over one year
Your Answer Over one year
Select The Blank

Question The Shipping Credit and Investment Company of
India Ltd. has changed its name to ________
effective from October 1992.
Correct Answer SCICI Ltd
Your Answer SCICI Ltd
True/False
Question A Bill of Exchange is negotiable.
Correct Answer True
Your Answer True

Question IDA lends to poor countries :-
Correct Answer By borrowing from IBRD , By lending at 0% interest. ,
For periods up to ten years
Your Answer By lending at 0% interest. , For periods up to ten
years
Question The organised financial system includes :-
Correct Answer Commercial banks
Your Answer Commercial banks

Question Liabilities of Insurance Cos are mostly :-
Correct Answer Long term
Your Answer Long term
Select The Blank

Question SCICI provides domestic & foreign loans for capital
equipment and________ services.
Correct Answer Technical
Your Answer Technical

Question Development Financial Institutions provide finance to
the needy
Correct Answer Corporates & govt. institutions
Your Answer Corporates & govt. institutions
Select The Blank

Question GIC raises funds to meet claims from ________.
Correct Answer Premium collected
Your Answer Premium collected
True/False
Question The currency notes issued by RBI are legal tender
everywhere in India without any limit.
Correct Answer True
Your Answer True
True/False
Question Issuance of CD attracts reserve requirements.
Your Answer True
True/False
Question IDA does not lend to countries that are not in a
position to borrow from IBRD.
Your Answer False

Question Mutual fund has main entities like :-
Correct Answer Sponsor , Trust , Asset Management company
Your Answer Sponsor , Trust , Investment bank

Question R B I issues currency notes against the security of:-
Correct Answer Gold bullion , Foreign securities , GOI securities
Your Answer Gold bullion , Foreign securities , GOI securities
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Your Answer True
Financial Institutions and Banking_9
Select The Blank
Question Kisan Vikas Patra are issued through ________.
Correct Answer Post Offices
Your Answer Post Offices

Question For a focus on the SSI Sector in 1986 IDBI created :-
Correct Answer SIDF
Your Answer SIDF
Match The Following

Corporates RIL, HPCL RIL, HPCL
NGOs CASP, CRY, PLAN CASP, CRY, PLAN
DFI IDBI, IFCI, ICICI IDBI, IFCI, ICICI
PSUs NTPC, NHPC, Coal India NTPC, NHPC, Coal India

Question DFHI was set up jointly by :-
Correct Answer RBI , Banks , All India Fis
Your Answer RBI , Banks , All India Fis , SEBI
Select The Blank

Question In addition to IFCI and ________ the Soft Loan Scheme
for modernisation is also undertaken by IDBI.
Correct Answer ICICI
Your Answer ICICI


Question Investment on a monthly basis and repayment on due date
is made in :-
Correct Answer Recurring deposit
Page 1
Your Answer Term deposit account

Question Tourism promotes :-
Correct Answer Credit Card Business , International remittances ,
Travellers' Cheques
Your Answer Credit Card Business , International remittances ,
Travellers' Cheques

Question A company issues CP to save on :-
Correct Answer Interest cost
Your Answer Taxes

Question A current account where the customer can withdraw more
than the balance is :-
Correct Answer Overdraft
Your Answer Overdraft
Select The Blank

Question AFC's membership consists of commercial, cooperative
banks and DFIs including ________.
Correct Answer EXIM bank
Your Answer EXIM bank

Question Functions of R.O. do not cover :-
Correct Answer SLR/CRR maintenance , Liaison with RBI/IBA ,
Issuing Lending Policy
Your Answer Liaison with RBI/IBA , Issuing Lending Policy
Select The Blank

Question The ________ of NABARD covers release of refinance
without prior sanction for refinance limit.
Correct Answer ARS
Your Answer CFSF
Select The Blank

Question The ________ regulation makes the banks the largest
investor in the GOI securities.
Correct Answer SLR
Page 2
Your Answer SLR

Question Post Offices are popular for mobilizing small savings of
the public due to :-
Correct Answer Wide network , Tax concessions , Saftey of funds
Your Answer Wide network , Tax concessions , Saftey of funds
True/False
Your Answer True

Question SIDBI commenced its operations from :-
Correct Answer April 2,1990
Your Answer April 2,1990

Question The ultimate source of money in India is:-
Correct Answer RBI
Your Answer RBI

Your Answer Financial companies

Correct Answer By borrowing from IBRD , By lending at 0%
interest. , For periods up to ten years
Your Answer By borrowing from IBRD , By lending at 0% interest. ,

Question The prominent Bond issuing PSU are :-
Correct Answer MTNL , NTPC , SAIL
Your Answer MTNL , NTPC , SAIL
Match The Following

Page 3
Hill ,Tribal Area development Area Development Area Development
Aquaculture ,Brackish Water Fisheries Fisheries
Ploughing, weeding, transplantation Seasonal Agricultural Operations

Irrigation & Drainage
Market Yards, Storage & Warehousing Agricultural Marketing

Agricultural Marketing
True/False
Question Small Savings are source of Capital Receipts for the
Government.
Correct Answer True
Your Answer False

Question The financial Assistance provided by the IMF enables
member countries to :-
Correct Answer Rebuild resources , Stabilise currencies , Pay for
imports
Your Answer Rebuild resources , Stabilise currencies , Undertake
specific projects

Question Cetificate of deposit are issued by :-
Correct Answer Banks
Your Answer Banks

Question IDBI has helped in the establishment of :-
Correct Answer EXIM Bank
Your Answer ICICI
Select The Blank

Question NHB at present has a ________ Capital of Rs. 350 crores.
Correct Answer Paid-up
Your Answer Paid-up
True/False
Page 4
Question The Capital of NABARD is subscribed by World Bank.
Your Answer False
Select The Blank

Question In a Bank, the investment decisions are taken at
________ level.
Correct Answer Head Office
Your Answer Head Office

Question RBI is also referred to as :-
Correct Answer Apex Bank
Your Answer Apex Bank

Question EXIM Bank can raise resources by:-
Correct Answer Issuing bonds , Borrowing from RBI , Borrowing
from International Financial Institutions
Your Answer Borrowing from RBI , Borrowing from International
Financial Institutions

Question PFC is committed to the integrated development of :-
Correct Answer Power
Your Answer Power
True/False
Question PFC has been persuading State Governments restructuring
of their power sector to make them viable.
Correct Answer True
Your Answer True

Question SIDBI provides :-
Correct Answer Refinance , Rediscounting of Bills , Financial
support to SSIDC
Your Answer Refinance , Financial support to SSIDC , Cash Credit
facilities
True/False
Question Under MIGA the World bank offers various forms of
Page 5
Political Insurance.
Correct Answer True
Your Answer True

Question Other than Tourism, International funds remittances
comprise of :-
Correct Answer Donations/Charity , Payments of Salaries ,
Payments of Royalty
Your Answer Payments of Royalty , Travel related payments
True/False
Question SCICI is a member of the OTCEI.
Correct Answer True
Your Answer False
Select The Blank

Question HDFCs loans were linked up with________.
Correct Answer Planned Savings
Your Answer Planned Savings
True/False
Correct Answer True
Your Answer True
True/False
Question HDFC was set up by NHB.
Your Answer False
Select The Blank

Question Mutual Funds provide the benefits of ________.
Correct Answer Portfolio management
Your Answer Portfolio management
True/False
Question In case of T-Bills potential investors have to put in
competitive bids.
Correct Answer True
Your Answer True
Page 6
True/False
Question Non bank financial institutions undertake fund and non
fund based activities.
Correct Answer True
Your Answer True

Question Functions of R.O. of a bank include :-
Correct Answer Inspection/audit , Control on branches , Grant
loans/advances
Your Answer Inspection/audit , Control on branches , Grant
loans/advances

Question Duties of an International Banking unit cover :-
Correct Answer Handling foreign currency , Handling Doc.
credits , Granting lines of Credit
Your Answer Maintaining SLR/CRR , Handling foreign currency ,
Handling Doc. credits , Granting lines of Credit
Select The Blank

Question Secured Premium Notes are ________.
Correct Answer Debentures
Your Answer Debentures
Select The Blank

Question Syndication involves ________ sanction.
Correct Answer In principle
Your Answer Funded
Page 7
Select The Blank

Question The Shipping Credit and Investment Company of India Ltd. has changed its
name to ________ effective from October 1992.

Select The Blank

Question AFC's membership consists of commercial, cooperative banks and DFIs
including ________.




Question The lender of the last resort to the market! is the :-
Correct Answer RBI

Your Answer RBI
Select The Blank

Question One of the objectives of NHB is to augment the ________ resources for the
housing sector.


Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up

to ten years
Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to
ten years

Your Answer Interest cost
True/False
Question PFC has been persuading State Governments restructuring of their power
sector to make them viable.
Correct Answer True
Your Answer True

Correct Answer RBI

Your Answer RBI
True/False

Your Answer True

Question RBI was established under the:-
Correct Answer RBI Act

Your Answer RBI Act

Question The major area of AFC's specialisation included Crop Production as well
as:-
Correct Answer Crop Planning , Plant Protection , Farm Management

Your Answer Crop Planning , Plant Protection , Farm Management

Question A member's IMF Quota determines its :-
Correct Answer Financial commitment , Voting power , Drawing power

Your Answer Financial commitment , Voting power , Drawing power
Select The Blank

Question Period of Holiday Insurance is ________.
Correct Answer Six months or less

Your Answer Three years

Question The underdeveloped markets are characterised by :-
Correct Answer Government regulation and control

Your Answer Government reg! ulation and control


Your Answer Banks
True/False
Question The bids for T-Bills are on price/interest basis.
Correct Answer True

Your Answer True






Your Answer Fire insurance , Miscellaneous , Marine insurance
True/False
Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.

Your Answer False

Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers

Your Answer Money lenders , Indigenous bankers , Lending pawn brokers
True/False
Question NABARD is an apex institution in the field of Integrated Rural Development.
&nbs! p;
Correct Answer True

Your Answer True
Select The Blank

Question 55% of HUDCO loans are earmarked for________& low income groups.
Correct Answer Weaker sections

Your Answer Weaker sections


Question Money Markets Instruments have a maturity of less than :-
Correct Answer One year

Your Answer One year
Select The Blank

Correct Answer &n! bsp; Rate of interest

Match The Following

Development financial institutions IFCI IFCI
Organised sector Banking System Banking System
Unorganised sector Indigenous banks Indigenous banks
Mutual funds UTI UTI
Select The Blank

Question The HDFC was set up in 1977 by the ________.

Your Answer ICICI

Question Certificate of deposit is a :-
Correct Answer Usance promissory note

Your Answer Term Deposit Receipt
True/False
Correct Answer True

Your Answer True

Your Answer Corporates

Question A current account where the customer can withdraw more than the balance
is :-


Question The loans of finance companies are generally :-
Correct Answer At high interest , Unsecured , Based on borrowers worth

Your Answer At high interest , Unsecured , Based on borrowers worth

Correct Answer SIDF

Your Answer SIDF
True/False

Your Answer False
True/False
Question Banks issue Guarantees on behalf of their clients.
Correct Answer True

Your Answer True
Match The Following

NABARD Rural Development Rural Development
AFC Ltd Consultancy Consultancy
HUDCO Housing Housing
NCDC Development of Cooperatives Development of Cooperatives
True/False
Question Under MIGA the World bank offers various forms of Political Insurance.
Correct Answer True

Your Answer True
Question In case of a Life policy it is possible to withdraw from the obligation to
contribute further premium by :-
Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it
in the open market
Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in
the open market


Select The Blank

Question The term ________ refers to the act of a bank extending finance to the
seller against a letter of credit.
Correct Answer Negotiation

Your Answer Negotiation

Question Functions of a Bank's H.O. include:-
Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control

Question Bonds issued by institutions through SPVs to execute infrastructure projects
are :-
Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Select The Blank


!


Question Under Project Finance Scheme IDBI provides assistance for :-
Correct Answer New Projects , Renovation , Modernisation
Select The Blank


Select The Blank

including ________.




Question The lender of the last resort to the market is the :-
Correct Answer RBI

Your Answer RBI
Select The Blank

housing sector.



to ten years
ten years


True/False
Correct Answer True

Your Answer True

Correct Answer RBI

Your Answer RBI
True/False

Your Answer True


Your Answer RBI Act

as:-



Select The Blank




Your Answer Government regulation and control

Your Answer Banks
True/False
Correct Answer True

Your Answer True






True/False
Fertilisers.

Your Answer False


True/False
Correct Answer True

Your Answer True
Select The Blank





Select The Blank


Match The Following

Select The Blank


Your Answer ICICI


True/False
Correct Answer True

Your Answer True


is :-




Correct Answer SIDF

Your Answer SIDF
True/False

Your Answer False
True/False
Correct Answer True

Your Answer True
True/False
Correct Answer True

Your Answer True

in the open market
the open market


Select The Blank




are :-
Select The Blank






Select The Blank


Correct Answer SIDF

Your Answer SIDF
Match The Following


NGOs CSP, CRY, PLAN CSP, CRY, PLAN


Select The Blank

Question In addition to IFCI and ________ the Soft Loan Scheme for modernisation is
also undertaken by IDBI.

Your Answer ICICI



is made in :-



Travellers' Cheques
Travellers' Cheques

Your Answer Taxes

is :-

Select The Blank




Select The Blank

Correct Answer ARS

Your Answer CFSF
Select The Blank

Correct Answer SLR

Your Answer SLR


True/False
Your Answer True



Correct Answer RBI

Your Answer RBI






Match The Following

Aquaculture , Brackish Water Fisheries Fisheries
Ploughing, weeding, transplantation

Seasonal Agricultural Operations Irrigation & Drainage
Market Yards, Storage &

Warehousing Agricultural Marketing Agricultural Marketing
True/False
Question Small Savings are source of Capital Receipts for the Government.
Correct Answer True
Your Answer False

Question The financial Assistance provided by the IMF enables member countries to
:-
Correct Answer Rebuild resources , Stabilise currencies , Pay for imports

Your Answer Rebuild resources , Stabilise currencies , Undertake specific projects


Your Answer Banks


Your Answer ICICI
Select The Blank


Your Answer Paid-up
True/False

Your Answer False
Select The Blank

Question In a Bank, the investment decisions are taken at ________ level.




Correct Answer Issuing bonds , Borrowing from RBI , Borrowing from International
Your Answer Borrowing from RBI , Borrowing from International Financial Institutions


Your Answer Power
True/False
Correct Answer True

Your Answer True

Correct Answer Refinance , Rediscounting of Bills , Financial support to SSIDC

Your Answer Refinance , Financial support to SSIDC , Cash Credit facilities
True/False
Correct Answer True

Your Answer True

Question Other than Tourism, International funds remittances comprise of :-
Correct Answer Donations/Charity , Payments of Salaries , Payments of Royalty

True/False
Correct Answer True

Your Answer False
Select The Blank


True/False
Correct Answer True

Your Answer True
True/False

Your Answer False
Select The Blank


True/False
competitive bids.
Correct Answer True

Your Answer True
True/False
Question Non bank financial institutions undertake fund and non fund based activities.
Correct Answer True

Your Answer True

Correct Answer Inspection/audit , Control on branches , Grant loans/advances

Your Answer Inspection/audit , Control on branches , Grant loans/advances

Correct Answer Handling foreign currency , Handling Doc. credits , Granting lines of
Credit
Your Answer Maintaining SLR/CRR , Handling foreign currency , Handling Doc. credits
, Granting lines of Credit
Select The Blank


Select The Blank


Your Answer Funded
FI & B Binu -LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Question The type of banking involving a small number of Large Customers viz.Corporates & multinationals is :-
Correct Answer Wholesale Banking
Your Answer Wholesale Banking

Your Answer Power

Your Answer EXIM Bank
Select The Blank

Question NABARD took over the functions of ACD, RPCC of RBI & ________.
Correct Answer ARDC
Your Answer ARDC

Question The major area of AFC's specialisation included Crop Production as well as:-
True/False
Correct Answer True
Your Answer False
Select The Blank

Your Answer ICICI

Question The main objective of ICICI was :-
Correct Answer To augment export finance in India , To channelise World Bank's funds to industries in India ,
To help in building up a Capital Market in India
Your Answer To augment export finance in India , To channelise World Bank's funds to industries in India , To help in
building up a Capital Market in India

Question ECGC Board comprises of Directors representing :-
Correct Answer Government , Banking/Insurance , Trade/Industry
Your Answer Government , Banking/Insurance , Trade/Industry
True/False
Question Bank Guarantee can be Performance of financial Guarantee.
Your Answer False

Question Which of the following institution was set up as a subsidy of RBI in 1964?
Correct Answer IDBI
Your Answer IDBI
Match The Following

Advances Loans/cash credits Loans/cash credits
Cash withdrawal facility ATM ATM
Remittances MT/DD/TT/EFT MT/DD/TT/EFT
Government business Collection of taxes Collection of taxes

Question The objective NEF Scheme of SIDBI is to provide equity support to :-
Correct Answer New Units in tiny Sector , New Units in Small Sector , Existing units in tiny & small scale sector
Your Answer New Units in tiny Sector , New Units in Small Sector , Existing units in tiny & small scale sector
Select The Blank

Your Answer Agriculturists
Select The Blank

Question The ________ of NABARD covers release of refinance without prior sanction for refinance limit.
Correct Answer ARS
Your Answer CFSF

Your Answer Sponsor , Trust , Asset Management company
True/False
Question EXIM Bank provides Lines of Credit to other nations for Indian exports.
Correct Answer True
Your Answer True
Select The Blank

Question Legally speaking Pass Through Certificates are ________ and are tradeable freely.
Correct Answer Promissory notes
Your Answer Promissory notes

Question A record of the holdings of GOI dated securities of each holder is contained in :-
Correct Answer SGL pass book
Your Answer SGL pass book


Question Liquid assets to be maintained to a stipulated ratio under Section 24 of BR Act is called :-
Correct Answer Statutory Liquidity Ratio
Your Answer Cash Reserves Ratio
Select The Blank


Question RBI sells securities through :-
Correct Answer Auction program , Open market operations , Private placements
Your Answer Auction program , Open market operations , Private placements

Question R B I conducts monetary control by way of O M O in :-
Correct Answer Treasury bills , State /central Government Securities
Your Answer Treasury bills , State /central Government Securities
True/False
Your Answer False
True/False
Question No TDS is deducted on Interest paid on CDs.
Correct Answer True
Your Answer True

Question Corporate Debentures are :-
Correct Answer Long term debt instruments
Your Answer Short term deposit receipts
True/False
Question Amongst others, ICICI also provided long and medium term loans or equity finance.
Correct Answer True
Your Answer True

True/False
Your Answer False
True/False
Question IDA does not lend to countries that are not in a position to borrow from IBRD.
Your Answer False

Question SFCs provide finance to :-
Correct Answer Corporates , Partnerships , Proprietary firms
Your Answer Corporates , Partnerships , Proprietary firms
Select The Blank

Question AFC's membership consists of commercial, cooperative banks and DFIs including ________.

Select The Blank

Question The ________ are buy and hold investors and almost never trade on their investments.
Correct Answer Provident Funds
Your Answer Foreign Investors(FIIs)
True/False
Correct Answer True
Your Answer True

Question IFC provides financial assistance :-
Correct Answer Through loans , Through purchase of shares , For economic development
Your Answer Through loans , Through purchase of shares , For economic development


True/False
Question NABARD provides short term refinance for procurement activities also.
Correct Answer True
Your Answer False
Match The Following

GOI securities ZCB, ILBonds ZCB, ILBonds
Long Term Debt instruments PSU Bonds PSU Bonds
Money Market Instruments CP, T- Bills CP, T- Bills
Negotaible Instruments Bills of exchange ,Cheques Bills of exchange ,Cheques

Question IRBI was set up with a focus on :-
Correct Answer Sick Units
Your Answer Public sector
Select The Blank

Question The ________ was set up to help corrections in BOP maladjustments.
Correct Answer IMF
Your Answer IBRD
Select The Blank

Your Answer High returns


Correct Answer Handling foreign currency , Handling Doc. credits , Granting lines of Credit
Your Answer Handling foreign currency , Handling Doc. credits , Granting lines of Credit


Your Answer Power

Select The Blank

Correct Answer ARDC
Your Answer ARDC

True/False
Correct Answer True
Your Answer False
Select The Blank

Your Answer ICICI


True/False
Your Answer False

Correct Answer IDBI
Your Answer IDBI
Match The Following


Select The Blank

Select The Blank

Correct Answer ARS
Your Answer CFSF

True/False
Correct Answer True
Your Answer True
Select The Blank




Select The Blank



True/False
Your Answer False
True/False
Correct Answer True
Your Answer True

True/False
Correct Answer True
Your Answer True

True/False
Your Answer False
True/False
Your Answer False

Select The Blank


Select The Blank

True/False
Correct Answer True
Your Answer True



True/False
Correct Answer True
Your Answer False
Match The Following


Select The Blank

Correct Answer IMF
Your Answer IBRD
Select The Blank




Your Answer RBI
Select The Blank

Question The loans under________ are based on Poverty
Reduction Strategy Paper.
Correct Answer PRGF
Your Answer PRGF

Question Treasury Bills are issued by the :-
Correct Answer RBI
Your Answer RBI

Question IFCI raises its funds by way of :-
Correct Answer Issuing bonds , Borrowing from RBI , Borrowing from
IDBI
Your Answer Issuing bonds , Borrowing from RBI , Issuing shares
True/False
Question NABARD does not provide Refinance for stocking &
distribution of Chemical Fertilisers.
Your Answer True
True/False
Question Non bank financial institutions undertake fund and
non fund based activities.
Correct Answer True
Your Answer False

Question DICGC does not insure the deposits :-
Correct Answer Of foreign Governments , Of State Cooperative Banks
Your Answer Of foreign Governments , Of State Cooperative Banks
Select The Blank

Question Development financial institutions have been
established to cater to ________ of the industrial
sector.
Correct Answer Long term financial needs
Your Answer Long term financial needs

Correct Answer Money lenders , Indigenous bankers , Lending pawn
brokers
Your Answer Money lenders , Indigenous bankers , Lending pawn
brokers

Question Which of the following institution was set up as a
subsidy of RBI in 1964?
Correct Answer IDBI
Your Answer IDBI

Question Under Project Finance Scheme IDBI provides
assistance for :-
Correct Answer Modernisation , New Projects , Renovation
Select The Blank

Question One of the objectives of NHB is to augment the
________ resources for the housing sector.
Match The Following

Small Savings Chit Funds Chit Funds
Gen.Insurance NICo of India Ltd. NICo of India Ltd.
Life Insurance LIC of India Ltd LIC of India Ltd
Mutual fund UTI UTI

Question Which one of the following is a Cooperative Bank?
Correct Answer COSMOS BANK
Your Answer COSMOS BANK
True/False
Question Bank Guarantee can be Performance of financial
Guarantee.
Your Answer True

Question Credit Information report is also known as :-
Correct Answer Credit report , Banker's report , Confidential report
Your Answer Credit report , Banker's report , Confidential report
True/False
Question Most of the Indian PS Banks practice retail banking.
Correct Answer True
Your Answer False

Question Prominent Institutional Investors are :-
Correct Answer Foreign Investors(FIIs) , Corporate Treasuries ,
Mutual Funds
Your Answer Foreign Investors(FIIs) , Corporate Treasuries ,
Mutual Funds
Select The Blank
Select The Blank

Question Financial markets are the centres that provide
facilities for buying and selling of ________.
Correct Answer Financial claims and services
Your Answer Financial claims and services

True/False
Question IMF discourages excessive use of its resources by
imposing a surcharge on large loans.
Correct Answer True
Your Answer True

Question Initial Quantum of resources of IMF were contributed
by members according to :-
Correct Answer Quotas fixed for members
Your Answer Quotas fixed for members
Select The Blank

Question The extent of powers enjoyed by a branch depends
on the size of its ________.
Correct Answer Business
Your Answer Deposits



Question Deposits per depositor per bank are secured by
DICGC up to a sum of :-
Correct Answer Rs. one lac.
Your Answer Rs. one lac.

Your Answer Marine insurance , Fire insurance , Miscellaneous

Question The objective NEF Scheme of SIDBI is to provide
equity support to :-
Correct Answer New Units in tiny Sector , New Units in Small Sector ,
Your Answer New Units in tiny Sector , New Units in Small Sector ,
Match The Following

CRR Primary reserve Primary reserve

requirement requirement
Bankers Bank Controlling the Controlling the
reserves of reserves of commercial
commercial banks banks
Exchange control FEMA FEMA
OMO Government securities Government securities



Select The Blank

Question The Shipping Credit and Investment Company of
India Ltd. has changed its name to ________
effective from October 1992.
True/False
Correct Answer True
Your Answer True

Correct Answer By borrowing from IBRD , By lending at 0% interest. ,
Your Answer By lending at 0% interest. , For periods up to ten
years

Question Liabilities of Insurance Cos are mostly :-
Correct Answer Long term
Your Answer Long term
Select The Blank

Question SCICI provides domestic & foreign loans for capital
equipment and________ services.
Correct Answer Technical
Your Answer Technical

Question Development Financial Institutions provide finance to
the needy
Correct Answer Corporates & govt. institutions
Your Answer Corporates & govt. institutions
Select The Blank

True/False
Question The currency notes issued by RBI are legal tender
everywhere in India without any limit.
Correct Answer True
Your Answer True
True/False
Your Answer True
True/False
Question IDA does not lend to countries that are not in a
position to borrow from IBRD.
Your Answer False

Your Answer Sponsor , Trust , Investment bank

Question R B I issues currency notes against the security of:-
Correct Answer Gold bullion , Foreign securities , GOI securities
Your Answer Gold bullion , Foreign securities , GOI securities
True/False
Your Answer True


Your Answer Power

Select The Blank

Correct Answer ARDC
Your Answer ARDC

True/False
Correct Answer True
Your Answer False
Select The Blank

Your Answer ICICI


True/False
Your Answer False

Correct Answer IDBI
Your Answer IDBI
Match The Following


Select The Blank

Select The Blank

Correct Answer ARS
Your Answer CFSF

True/False
Correct Answer True
Your Answer True
Select The Blank




Select The Blank



True/False
Your Answer False
True/False
Correct Answer True
Your Answer True

True/False
Correct Answer True
Your Answer True

True/False
Your Answer False
True/False
Your Answer False

Select The Blank


Select The Blank

True/False
Correct Answer True
Your Answer True



True/False
Correct Answer True
Your Answer False
Match The Following


Select The Blank

Correct Answer IMF
Your Answer IBRD
Select The Blank



Select The Blank


Select The Blank

including ________.




Question The lender of the last resort to the market! is the :-
Correct Answer RBI

Your Answer RBI
Select The Blank

housing sector.



to ten years
ten years

True/False
Correct Answer True
Your Answer True

Correct Answer RBI

Your Answer RBI
True/False

Your Answer True


Your Answer RBI Act

as:-



Select The Blank




Your Answer Government reg! ulation and control


Your Answer Banks
True/False
Correct Answer True

Your Answer True






True/False
Fertilisers.

Your Answer False


True/False
&nbs! p;
Correct Answer True

Your Answer True
Select The Blank





Select The Blank

Correct Answer &n! bsp; Rate of interest

Match The Following

Select The Blank


Your Answer ICICI


True/False
Correct Answer True

Your Answer True


is :-




Correct Answer SIDF

Your Answer SIDF
True/False

Your Answer False
True/False
Correct Answer True

Your Answer True
Match The Following

NABARD Rural Development Rural Development
AFC Ltd Consultancy Consultancy
HUDCO Housing Housing
NCDC Development of Cooperatives Development of Cooperatives
True/False
Correct Answer True

Your Answer True
in the open market
the open market


Select The Blank




are :-
Select The Blank


!


Select The Blank


Select The Blank

including ________.




Question The lender of the last resort to the market is the :-
Correct Answer RBI

Your Answer RBI
Select The Blank

housing sector.



to ten years
ten years


True/False
Correct Answer True

Your Answer True

Correct Answer RBI

Your Answer RBI
True/False

Your Answer True


Your Answer RBI Act

as:-



Select The Blank





Your Answer Banks
True/False
Correct Answer True

Your Answer True






True/False
Fertilisers.

Your Answer False


True/False
Correct Answer True

Your Answer True
Select The Blank





Select The Blank


Match The Following

Select The Blank


Your Answer ICICI


True/False
Correct Answer True

Your Answer True


is :-




Correct Answer SIDF

Your Answer SIDF
True/False

Your Answer False
True/False
Correct Answer True

Your Answer True
True/False
Correct Answer True

Your Answer True

in the open market
the open market


Select The Blank




are :-
Select The Blank






Select The Blank


Correct Answer SIDF

Your Answer SIDF
Match The Following


NGOs CSP, CRY, PLAN CSP, CRY, PLAN


Select The Blank

Question In addition to IFCI and ________ the Soft Loan Scheme for modernisation is
also undertaken by IDBI.

Your Answer ICICI



is made in :-



Travellers' Cheques
Travellers' Cheques

Your Answer Taxes

is :-

Select The Blank




Select The Blank

Correct Answer ARS

Your Answer CFSF
Select The Blank

Correct Answer SLR

Your Answer SLR


True/False
Your Answer True



Correct Answer RBI

Your Answer RBI






Match The Following

Aquaculture , Brackish Water Fisheries Fisheries
Ploughing, weeding, transplantation

Seasonal Agricultural Operations Irrigation & Drainage
Market Yards, Storage &

Warehousing Agricultural Marketing Agricultural Marketing
True/False
Question Small Savings are source of Capital Receipts for the Government.
Correct Answer True
Your Answer False

Question The financial Assistance provided by the IMF enables member countries to
:-
Correct Answer Rebuild resources , Stabilise currencies , Pay for imports

Your Answer Rebuild resources , Stabilise currencies , Undertake specific projects


Your Answer Banks


Your Answer ICICI
Select The Blank


Your Answer Paid-up
True/False

Your Answer False
Select The Blank





Correct Answer Issuing bonds , Borrowing from RBI , Borrowing from International
Your Answer Borrowing from RBI , Borrowing from International Financial Institutions


Your Answer Power
True/False
Correct Answer True

Your Answer True

Correct Answer Refinance , Rediscounting of Bills , Financial support to SSIDC

Your Answer Refinance , Financial support to SSIDC , Cash Credit facilities
True/False
Correct Answer True

Your Answer True

Question Other than Tourism, International funds remittances comprise of :-
Correct Answer Donations/Charity , Payments of Salaries , Payments of Royalty

True/False
Correct Answer True

Your Answer False
Select The Blank


True/False
Correct Answer True

Your Answer True
True/False

Your Answer False
Select The Blank


True/False
competitive bids.
Correct Answer True

Your Answer True
True/False
Question Non bank financial institutions undertake fund and non fund based activities.
Correct Answer True

Your Answer True



Correct Answer Handling foreign currency , Handling Doc. credits , Granting lines of
Credit
Your Answer Maintaining SLR/CRR , Handling foreign currency , Handling Doc. credits
, Granting lines of Credit
Select The Blank


Select The Blank


Your Answer Funded
Select The Blank

Correct Answer SIDF
Your Answer SIDF
Match The Following

NGOs CASP, CRY, PLAN CASP, CRY, PLAN

Select The Blank

Question In addition to IFCI and ________ the Soft Loan Scheme
for modernisation is also undertaken by IDBI.
Your Answer ICICI


is made in :-
Page 1

Travellers' Cheques
Travellers' Cheques

Your Answer Taxes

Question A current account where the customer can withdraw more
than the balance is :-
Select The Blank


Select The Blank

Correct Answer ARS
Your Answer CFSF
Select The Blank

Correct Answer SLR
Page 2
Your Answer SLR

True/False
Your Answer True


Correct Answer RBI
Your Answer RBI



Match The Following

Page 3
Aquaculture ,Brackish Water Fisheries Fisheries
Ploughing, weeding, transplantation Seasonal Agricultural Operations

Irrigation & Drainage
Market Yards, Storage & Warehousing Agricultural Marketing

Agricultural Marketing
True/False
Question Small Savings are source of Capital Receipts for the
Government.
Correct Answer True
Your Answer False

Question The financial Assistance provided by the IMF enables
member countries to :-
Correct Answer Rebuild resources , Stabilise currencies , Pay for
imports
Your Answer Rebuild resources , Stabilise currencies , Undertake
specific projects

Your Answer Banks

Your Answer ICICI
Select The Blank

Your Answer Paid-up
True/False
Page 4
Your Answer False
Select The Blank

Question In a Bank, the investment decisions are taken at
________ level.


Correct Answer Issuing bonds , Borrowing from RBI , Borrowing
from International Financial Institutions
Your Answer Borrowing from RBI , Borrowing from International

Your Answer Power
True/False
Question PFC has been persuading State Governments restructuring
of their power sector to make them viable.
Correct Answer True
Your Answer True

Correct Answer Refinance , Rediscounting of Bills , Financial
support to SSIDC
Your Answer Refinance , Financial support to SSIDC , Cash Credit
facilities
True/False
Question Under MIGA the World bank offers various forms of
Page 5
Political Insurance.
Correct Answer True
Your Answer True

Question Other than Tourism, International funds remittances
comprise of :-
Correct Answer Donations/Charity , Payments of Salaries ,
Payments of Royalty
True/False
Correct Answer True
Your Answer False
Select The Blank

True/False
Correct Answer True
Your Answer True
True/False
Your Answer False
Select The Blank

True/False
competitive bids.
Correct Answer True
Your Answer True
Page 6
True/False
Question Non bank financial institutions undertake fund and non
fund based activities.
Correct Answer True
Your Answer True

Correct Answer Inspection/audit , Control on branches , Grant
loans/advances
Your Answer Inspection/audit , Control on branches , Grant
loans/advances

Correct Answer Handling foreign currency , Handling Doc.
credits , Granting lines of Credit
Your Answer Maintaining SLR/CRR , Handling foreign currency ,
Handling Doc. credits , Granting lines of Credit
Select The Blank

Select The Blank

Your Answer Funded
Page 7


Your Answer Power

Select The Blank

Correct Answer ARDC
Your Answer ARDC

True/False
Correct Answer True
Your Answer False
Select The Blank

Your Answer ICICI


True/False
Your Answer False

Correct Answer IDBI
Your Answer IDBI
Match The Following


Select The Blank

Select The Blank

Correct Answer ARS
Your Answer CFSF

True/False
Correct Answer True
Your Answer True
Select The Blank




Select The Blank



True/False
Your Answer False
True/False
Correct Answer True
Your Answer True

True/False
Correct Answer True
Your Answer True

True/False
Your Answer False
True/False
Your Answer False

Select The Blank


Select The Blank

True/False
Correct Answer True
Your Answer True



True/False
Correct Answer True
Your Answer False
Match The Following


Select The Blank

Correct Answer IMF
Your Answer IBRD
Select The Blank




Question Balance of Payment is :-
Correct Answer Analysis of monetary aspects of Foreign trade
Your Answer Analysis of monetary aspects of Foreign trade
Select The Blank

Question Capital Account consists of all transactions of ________ nature.
Your Answer Temporary
True/False
Question Free trade policy is not suited to developing & underdeveloped
countries because the industries of the developed countries
need protection from well established and well organized
industries of the developed countries.
Correct Answer True
Your Answer True
Select The Blank

Question The important distinction between domestic trade and foreign
trade relates to difference in ________.
Correct Answer Currency
Your Answer Currency
True/False
Question In case of export of goods on consignment basis, the freight and
insurance is arranged by the agent of exporter in his country.
Your Answer True

Question Japan is our major market for :-
Correct Answer Marine products exports
Your Answer Marine products exports
Select The Blank

Question Foreign Trade (Development and Regulation) Act 1992 came
into force on ________.
Correct Answer 6/19/2005
Your Answer 6/19/2005

Question Exports requiring prior approval of Reserve Bank / Govt
authorities are :-
Correct Answer Counter Trade Agreements , Project Exports , Exports under
trade agreements between Govt. of India and the Govt of
Foreign state
Your Answer Counter Trade Agreements , Project Exports , Exports under
Foreign state
Select The Blank

Question As stated in FERA 1973, the objectives of exchange control in
India is ________ of foreign exchange resources of the country
and proper utilizations
Correct Answer Conservation
Your Answer Conservation

Question The secretariat of SAARC is at
Correct Answer Kathmandu, Nepal
Your Answer Kathmandu, Nepal

Question Double weightage on FOB on the export of :-
Correct Answer Products from small/ cottage units , Fruits and vegetables ,
Horticultural products
Your Answer Products from small/ cottage units , Fruits and vegetables ,
True/False
Question Capital Account covers all transactions relating to India's foreign
financial assets and liabilities.
Correct Answer True
Your Answer True

Question Imports are recorded in the bo oks of accounts when:-
Correct Answer Payment is received
Your Answer Payment is received

Select The Blank
Question Free trade benefits the ________ because they are able to buy
a variety of commodities from abroad and at economical prices.
Correct Answer Consumers
Your Answer Consumers

Question Policies relating to commerce, trade, taxation :-
Correct Answer Are same within the country , Different outside the country ,
Incorporate artificial barriers in form of quotas import duties
Your Answer Are same within the country , Different outside the country ,
Match The Following

Value added exports Finer processing and Incorrect branding

packing for earning higher
export returns
Faceless presence Indian raw material with Finer processing and
foreign brand name packing for earning higher
export returns
Unreliability Lack of prompt After sales Lack of prompt After sales
service service
Problem recognition Lack of innovativeness Lack of innovativeness
Select The Blank

Question Long Term Capital involves International transfer of ________
Correct Answer Purchasing power
Your Answer Purchasing power
Match The Following

IEC Importer Exporter Code Importer Exporter Code
NDDB National Dairy National Dairy

Development Board Development Board
MML Minerals & Metals Ltd Minerals & Metals Ltd
CCIE Chief controller of Imports Chief controller of Imports

and Exports and Exports
Select The Blank

Question The economic argument in favor of protectionism is that the
infant industries have to be protected against stiff________
Correct Answer Competition
Your Answer Import duty
Select The Blank

Question India gain due to membership of WTO of other developing
countries like china because the ________ ratio of India is low
Correct Answer Trade-GDP
Your Answer Trade-GDP

Question Indian products are not sold in Foreign Market because of :-
Correct Answer Traditional approach
Your Answer Traditional approach

Question Merchandise trade means :-
Correct Answer Transactions relating to movable goods
Your Answer Transactions relating to movable goods
True/False
Question Foreign Trade helps to understand the life style, culture,
philosophies, social & political institutions of the different
countries
Correct Answer True
Your Answer True

Question Free Trade refers to a situation :-
Correct Answer Where there is unrestricted exchange of goods and services

between countries. , Where the Govt. follows a policy of non-
interference , Where there is absence of tariffs quotas,
exchange restriction taxes and subsidies on production
Your Answer Where there is unrestricted exchange of goods and services

Question The country has recorded a rapid growth in the manufactures of
chemicals during the last few years. Prominent among these are
Correct Answer Caustic soda , Soda ash , Carbon black
Your Answer Caustic soda , Soda ash , Carbon black

Question BIS stands for
Correct Answer Bank for International Settlements
Your Answer Bank for International Settlements

Question Units manufacturing capital goods and consumer durables are
scattered all over the country but they are concentrated mainly
in
Correct Answer Maharashtra , West Bengal , Karnataka
Your Answer Maharashtra , West Bengal , Uttar Pradesh

Question The gems and Jewellery export sector is highly import oriented,
import of item constituting raw materials for this industry are
namely :-
Correct Answer Rough diamonds , Rough precious and semi precious stones ,
Pearls
Your Answer Rough diamonds , Rough precious and semi precious stones ,
Pearls
True/False
Question Free Trade is the best policy for economic development.
Correct Answer True
Your Answer True

Question The woolen industry in the country is small in size. It is basically
located in the states of
Correct Answer Punjab , Haryana , Rajasthan
Your Answer Punjab , Haryana , Rajasthan
Select The Blank

Question Manganese Ores with more than ________ Manganese is
canalised.
Correct Answer 0.46
Your Answer 0.46

Question Cost of production is higher in India because of :-
Correct Answer Time and Cost over runs
Your Answer Time and Cost over runs

Question The three corresponding agreements to WTO are
Correct Answer GATT , GATS , General Agreement on Trade Related aspects

of Intellectual Property Rights
Your Answer GATT , GATS
True/False
Question The international monetary fund is an organization of countries
that seeks to promote international monetary cooperation
Correct Answer True
Your Answer True
True/False
Question IRPS is replaced by Engineering Products (Replenishment of
Iron and Steel Intermediates) Scheme.
Correct Answer True
Your Answer True

Question In 1997-98 there was a decline in world trade due to :-
Correct Answer South east Asian crisis , Continued recession in Japan , Several
economic crisis in Russia
Your Answer South east Asian crisis , Continued recession in Japan , Several

Question In BOP surplus nations International Payment equilibrium
creates:-
Correct Answer Increase in price level , Increase in Income Level , Fall in
Interest rates
Your Answer Increase in price level , Increase in Income Level , Fall in
Interest rates

Question Duty drawback/exemption avoids :-
Correct Answer Commodity taxes like excise duty
Your Answer Commodity taxes like excise duty

Question Private Resident & non profit bodies comprises of people
engaged in :-
Correct Answer Social, healthcare activities
Your Answer Social, healthcare activities
Select The Blank

Question Nearly________ % of the member of WTO are developing
countries
Correct Answer 80
Your Answer 80

Question India commands an important place in would trade in
Correct Answer Tea
Your Answer Tea
True/False
Question Handicrafts are exported to more than 100 countries out of
which 11 countries buy and absorb about 80% of India's export
of Handicraft
Correct Answer True
Your Answer True

Question FDI may involve :-
Correct Answer Transfer of financial assets , Transfer of trademark , Transfer of

technology
Your Answer Transfer of financial assets , Transfer of trademark , Transfer of
technology

Question Non traditional sector consists broadly of:-
Correct Answer Consumer electronics
Your Answer Consumer electronics

Question Special Import License based on net foreign exchange is
entitled as follows :-
Correct Answer Export House 6% on FOB , Export House 7.5% on NFE ,
Superstar Trading House 12% on FOB
Your Answer Export House 6% on FOB , Export House 7.5% on NFE ,
Select The Blank
Question Readymade Garments are still a product of the ________ and
decentralized sectors
Correct Answer Small
Your Answer Small

14. Cement and Steel prices were de-controlled in :-
a)
1980-82
b) 1981-82
c) 1982-83
d) 1979-80
As per estimates of IMF if oil price rises by USD 5 per barrel it will amount to
25.
reduced GDP in industrial countries by .
34.
During plan period the average annual trade deficit reached its peak
43. Current Account is regarded as most basic of all sub accounts because :-
a)
Its volumes are bigger in size
b) It contains all transactions giving rise to countries national income
c) It helps movement of long term capital goods
d) It is a day to day activity

45.
has commented on adverse impact of exports due to
technological backwardness.
49. FCNR deposit's details are sent to RBI Monthly on :-
a)
STAT 5 From
b) STAT 4 From
c) STAT 3 Form
d) STAT 10 Form
. The theory of comparative costs was put forth by :-
a)
Modern economists
b) Traditional economists
c) Classical economists
d) Conservative economists
51. Faceless presence of Indian exporters in International market is denoted by
:-
a)
In ability to export in consumer packs
b) Create market for the brand
c) Maintaining quality
d) Dominance of MNCs

Question India Balance of Payments in 1999-2001 remained comfortable
because of :-
Correct Answer Increase is software exports , Recovery of exports , Net inflow of
invisibles
Your Answer Sale of Gold in open market , Recovery of exports , Increase is
software exports
True/False
Question Demonetisation means transfer of gold from Non-Monetary to
Monetary stock of reserves.
Your Answer False
Select The Blank

Question Canalised items are imported or exported only through
________.
Correct Answer Public Sector agencies
Your Answer Public Sector agencies
Select The Blank

Question Government has allowed Overseas Business operation through
issue of ________.
Correct Answer ADR/DGR
Your Answer Removal of restrictions
True/False
Question CCS scheme was abolished following the economic reforms.
Correct Answer True
Your Answer False

Question What is the general effect of Foreign Trade?
Correct Answer It encourages competition
Your Answer It encourages competition
Select The Blank

Question The IFC's role is to stimulate the few of private capital into
production private, mixed, private/public enterprises. It acts as a
________ in bringing together entrepreneurship, investment
capital E- production
Correct Answer Catalyst
Your Answer Catalyst

Question In the context of fish exports
Correct Answer India is the seventh largest production of fish , Second in inland
fish , Japan is the major market
Your Answer India is the seventh largest production of fish
True/False
Question Coffee has been identified for making special thrust in foreign
markets
Your Answer True

Question Imports results in :-
Correct Answer Outflow of foreign exchange
Your Answer Outflow of foreign exchange

Question As a further step in the path of liberalization Reserve Bank of
India has announced on 19th August 1994 :-
Correct Answer relaxation on the current account transactions and further
delegation of powers , The authorized dealers have been
permitted to allow remittances for various purposes , The country
has achieved full convertibility on current account
Your Answer relaxation on the current account transactions and further
Select The Blank

Question License not required if location of project is beyond 25 Kms
periphery from urban area having population of ________.
Correct Answer 1 million
Your Answer 1 million

Question Risks and uncertainties in the external environment are :-
Correct Answer Uneven GDP Growth pattern , Demand in major currencies like
Dollars , Misalignment between EURO and US Dollar
Your Answer Uneven GDP Growth pattern , Demand in major currencies like
Match The Following

IMD India Millennium Deposits India Millennium Deposits
FER Foreign Exchange Foreign Exchange

Reserves Reserves
GDPmp Gross Domestic Product Gross Domestic Product
FII Foreign Institutional Foreign Institutional

Investor Investor
True/False
Correct Answer True
Your Answer True

Question During 1990-91, push was given to the export effort resulting in
Correct Answer A surplus of Rs 32,558 crores , An increase of 17.7% in exports ,

Trade deficit of 10,35 crores
Your Answer An increase of 17.7% in exports

Question The following country is the founder member of IBRD
Correct Answer India
Your Answer USA

Question Export of goods causes :-
Correct Answer Inflow of foreign exchange
Your Answer Inflow of foreign exchange

Question Foreign institutions like the IMF, IBRD, World Bank, GATT have
been established after :-
Correct Answer The second world war
Your Answer The second world war

Question In BOP Official Capital Account consists of following items :-
Correct Answer Loans , Amortization , Miscellaneous
Your Answer Loans , Amortization , Defence Equipment

Question Important Technological factors for low exports are :-
Correct Answer High cost of production , Low productivity , Poor infrastructure
Your Answer High cost of production , Low productivity , Poor infrastructure

Question Until 1970's India had adopted a :-
Correct Answer Protectionist policy
Your Answer Protectionist policy

Question In domestic trade :-
Correct Answer Volume of trade is large
Your Answer Volume of trade is large

Question The term 'Trade' means :-
Correct Answer Exchange of goods among people
Your Answer Exchange of goods among people

Question As per Double Entry Accounting System timings for recording of
various transactions is as follows :-
Correct Answer Current account- when legal ownership changes , Interest and
Dividends- when they are due for payment , Unrequited transfers
-when change of ownership takes place
Your Answer Current account- when legal ownership changes
True/False
Question Adverse International economic situation immediately affects
Indian markets and exports.
Correct Answer True
Your Answer True

Question In Jan 1997 Foreign equity participation in automatic route raised
to :-
Correct Answer 0.74
Your Answer 0.71
Select The Blank

countries
Correct Answer 80
Your Answer 80

Question Exports of Super Phosphates is :-
Correct Answer Permitted Under License
Your Answer Permitted Under License
True/False
Question IRPS compensates the exporters price difference between
domestic market and International market on purchase of raw
materials.
Correct Answer True
Your Answer False

Question Non Resident External Rupee Account and Foreign Currency
Non resident Account fall under :-
Correct Answer Private Capital
Your Answer Private Capital

Question India is the :-
Correct Answer Seventh largest producer of fish in the world
Your Answer Seventh largest producer of fish in the world
True/False
Question Export Processing Zones cannot be set up by Private sector.
Your Answer True

Question Openness of an economy with respect to foreign trade refers to
its
Correct Answer Permissiveness towards exports & imports
Your Answer Permissiveness towards exports & imports
True/False
Question Asian Development Bank is established to assist development of
the developing countries under its region
Correct Answer True
Your Answer True
True/False
Question Short terms Capital involves movement of ownership with less
than one year maturity.
Correct Answer True
Your Answer True

Question The annual average value of imports during the first plan period
was
Correct Answer Rs 730 cores
Your Answer Rs 730 cores
Match The Following

FIPB Foreign Investment Foreign Investment

Promotion Board Promotion Board
PAB Project Approval Board Project Approval Board
SAP Structural Adjustment Structural Adjustment

Programme Programme
PMP Phased Manufacturing Phased Manufacturing
Programme Programme
Select The Blank

Question The equilibrium in BOP exists only when Debit is equal to Credit
without compensatory ________.
Correct Answer Capital Transfers
Your Answer Devaluation of currency
Select The Blank

Question The Invisible transactions except Insurance and Transportation
are recorded on ________ basis.
Correct Answer Gross
Your Answer Approximation

Question Survey of Unclassified Receipt means :-
Correct Answer Classification of receipts reported in R returns for the purpose of

BOP
Your Answer Investigation of non reported transactions

Question Result of liberalization is :-
Correct Answer More export led growth , Encouragement towards foreign

investments
Your Answer More export led growth , Encouragement towards foreign
investments , That on import front too there has been an
accelerated libaralization in the trade policy
Select The Blank

Question In India imports are recorded on ________ basis.
Correct Answer CIF
Your Answer CIF

Question Until the following country became the member of the world bank
in 1980, India was the largest beneficiary
Correct Answer China
Your Answer China
True/False
countries
Correct Answer True
Your Answer True

namely :-
Pearls
Your Answer Rough diamonds , Rough precious and semi precious stones

Question Foreign Trade is
Correct Answer Trade between different countries
Your Answer Trade between different countries

a)
1980-82
b) 1981-82
c) 1982-83
d) 1979-80
25.
34.
a)

45.
a)
STAT 5 From
b) STAT 4 From
c) STAT 3 Form
d) STAT 10 Form
a)
Modern economists
:-
a)

because of :-
invisibles
software exports
True/False
Your Answer False
Select The Blank

________.
Select The Blank

issue of ________.
True/False
Correct Answer True
Your Answer False

Select The Blank


True/False
markets
Your Answer True


Select The Blank


Match The Following


Reserves Reserves

Investor Investor
True/False
Correct Answer True
Your Answer True



Your Answer USA








True/False
Correct Answer True
Your Answer True

to :-
Correct Answer 0.74
Your Answer 0.71
Select The Blank

countries
Correct Answer 80
Your Answer 80

True/False
materials.
Correct Answer True
Your Answer False


True/False
Your Answer True

its
True/False
Correct Answer True
Your Answer True
True/False
Correct Answer True
Your Answer True

was
Match The Following



Programme Programme
Programme Programme
Select The Blank

Select The Blank



BOP


investments
Select The Blank

Correct Answer CIF
Your Answer CIF

Your Answer China
True/False
countries
Correct Answer True
Your Answer True

namely :-
Pearls



Question The major market for handicrafts and jewellery include
Correct Answer UK , USA , Germany
Your Answer UK , USA , Germany

True/False
Question The trade balance was positive during the year 2000-01
amounting to approx US$ 1 Bill only.
Your Answer False

Dollars , Lack of support to developing countries
Select The Blank

Question Free trade may encourage the import of ________ products in
the country and hunt the interest of the nations
Correct Answer Harmful
Your Answer Harmful

Question Pre Shipment inspection is part of :-
Correct Answer Export promotion by maintaining quality
Your Answer Export promotion by maintaining quality



Question Remittance against imports should be completed within
Correct Answer 6 months from the data of import
Your Answer 6 months from the data of import
True/False
Question WTO is simply renaming of GATT an d the there is no major
difference
Your Answer False

Question One of the major issues related to the controversy of GATT was
the issue of
Correct Answer Agricultural subsidies
Your Answer Agricultural subsidies

Question Where the import is in a non-physical form(e.g. data over
internet) :-
Correct Answer A certificate from the chartered accountant to the effect that the
data/design/software has been received by the importer, and is
acceptable, is required
Your Answer A certificate from the chartered accountant to the effect that the

Question If after taking all the efforts, the export bill is not realized to write
off the bill with supporting documentary evidence the bank will
consider the case subject to following conditions :-
Correct Answer The bill is outstanding for over a year , The total amount of
write-off allowed by the bank in a year does not exceed 10% of
the average annual export realization of the exporter, during the
preceding three calendar years , Exporter has submitted
satisfactory evidence to show that he has taken all the possible
efforts
Your Answer The bill is outstanding for over a year , The total amount of
efforts

Question The theory of comparative costs was put forth by :-
Correct Answer Classical economists
Your Answer Classical economists
True/False
Question Consignment exports means goods dispatched to the agent of
the exporter on sale or return basis
Correct Answer True
Your Answer True


Question The general council will serve following main functions:
Correct Answer To act as dispute settlement body , To establishment goods

council , To supervise on a regular basis the operations of
revised agreements
Your Answer To act as dispute settlement body , To establishment goods
revised agreements

Question The WTO deals with the special needs of the developing
countries in three ways
Correct Answer It contain special provision on developing countries , It has a
committee on trade and development , WTO secretariat
provides technical assistance
Your Answer It contain special provision on developing countries , It has a


Question India's contribution in the World Trade in 1950 was :-
Correct Answer 0.018

Your Answer 0.018

Question Government approval for Joint Venture with Small Scale sector
is given by :-
Correct Answer District Industrial Centre
Your Answer Director General Foreign Trade
True/False
Question Membership in the world bank is optional & not prerequisite for
membership in International Finance Corporation (IFC)
Your Answer False


Your Answer It increases lower levels of output

Your Answer Free trade policy

Question Objectives of Planning Commission were:-
Correct Answer Augment infrastructure , Formulation of policies for growth ,

Assessment of available resources
Your Answer Augment infrastructure , Formulation of policies for growth ,

Question Bertil Ohlin :-
Correct Answer Contends that there is no difference between domestic and

foreign trade , Is not a classical economist , Is a modern
economist
Your Answer Is a modern economist , Contends that there is no difference
between domestic and foreign trade , Is not a classical
economist

Question Labour is not mobile between countries because of :-
Correct Answer Difference in languages , Difference in customs , Occupational

skills
Your Answer Difference in languages , Difference in customs , Occupational
skills
Select The Blank

Question The woolen industry in the country is ________ in size and
widely scattered
Your Answer Small
True/False
Question Export growth was slow due to lack of value addition.
Correct Answer True
Your Answer True


investments
Select The Blank

Question The current account deficit in 1999 was ________ of GDP.
Your Answer 0.9.5%

Question Classical economists :-
Correct Answer Say that there is a fundamental difference between domestic

and foreign trade. , Have put forward the theory of comparative
costs , Differ from modern economists
Your Answer Say that there is a fundamental difference between domestic

Question The data regarding sale and purchase of foreign currencies by
FCNR account holders is maintained by :-
Correct Answer DEIO
Your Answer Authorised Dealers
Select The Blank

Question With a view to boost agricultural exports and provide
remunerative returns to the farming community, the export-
import policy 2002-2007 proposed the setting up of________
Correct Answer Agricultural Export Zones
Your Answer Agricultural Export Zones

Question Asian Development bank was set up in December 1966 under
the auspices of the
Correct Answer United Nations Economics Commission for Asia and Far East (
ECAFE)
Your Answer United Nations Economics Commission for Asia and Far East (
ECAFE)

Question Transportation Credit includes ……….
Correct Answer Freight on exports , remittances received by Shipping/Air lines ,

Remittances received by Foreign Agents of Indian companies
Your Answer Freight on exports , remittances received by Shipping/Air lines ,
True/False
Your Answer True
Select The Blank

Question Most of the leather exports go to highly industrialized country
like________
Correct Answer America
Your Answer America
True/False
Question Trade samples of goods and publicity materials supplied free of
payment are exempted from declaration in the form prescribed
by RBI
Correct Answer True
Your Answer True


Select The Blank

Question Capital fund flows have been augmented by SBI with floating of
________.
Correct Answer India Millennium Deposits
Your Answer India Millennium Deposits
True/False
Question A deficit occurs when Autonomous Transactions give rise to
receipts as against payments.
Your Answer True
Select The Blank

Question India's Trade Policy makers have realized that there is no
alternative but to give thrust to the ________.
Correct Answer Export
Your Answer Export
Match The Following

ECB External Commercial External Commercial

Borrowings Borrowings
FCNR Foreign Currency Non Foreign Currency Non
Resident Account Resident Account
SDR Special Drawings Rights Special Drawings Rights
GDP Gross Domestic Product Gross Domestic Product
Match The Following

DTA Domestic Tariff Area Domestic Tariff Area
MODVAT Modified Value Added Modified Value Added Tax

Tax
IRPS International Price International Price
Reimbursement Scheme Reimbursement Scheme
CCS Cash Compensatory Cash Compensatory
Support Scheme Support Scheme
Select The Blank

Question In UP Export Processing Zone is established in ________.
Correct Answer Noida
Your Answer Noida

Select The Blank


Question Travel credits are :-
Correct Answer Foreign exchange received from abroad for tourist/ students
Your Answer Foreign exchange received from abroad for tourist/ students
Select The Blank

Question Agency commission is not allowed to be remitted in case of
exports under ________ credit route.
Correct Answer Rupee
Your Answer Rupee

Question During the second plan period
Correct Answer Food grains import had to be resorted to overcome internal

shortages
Your Answer Food grains import had to be resorted to overcome internal
shortages

Question One of oldest organized industries is
Correct Answer Indian Textiles
Your Answer Indian Textiles

Question Prohibited Imports and Exports are punishable under :-
Correct Answer Section 11 of the Customs Act
Your Answer Section 11 of the Customs Act

Question The woolen industry in the country is basically located in the
state of :-
Correct Answer Punjab
Your Answer Punjab
Select The Blank

Question The gems & jewellery export sector is highly________ oriented
Correct Answer Import
Your Answer Import

Question The agreements of WTO :-
Correct Answer Spell out principles of liberalization , Set procedures for settling
disputes , Prescribe special treatment for developing countries
Your Answer Spell out principles of liberalization , Set procedures for settling
True/False
Question Capital Account of BOP has undergone major structural change
in favour of Non Debt creating Foreign Investment inflows.
Correct Answer True
Your Answer True

Question Faceless presence of Indian exporters in International market is
denoted by :-
Correct Answer Maintaining quality , In ability to export in consumer packs ,
Create market for the brand
Your Answer In ability to export in consumer packs , Create market for the
brand , Maintaining quality

Question Export prices are high because of :-
Correct Answer Economies of scale not available
Your Answer Economies of scale not available
Select The Blank

Question Declaration of export in PP forms are required for exports in
physical form through________
Correct Answer Post
Your Answer Post

Correct Answer A surplus of Rs 32,558 crores , An increase of 17.7% in exports

, Trade deficit of 10,35 crores
Your Answer A surplus of Rs 32,558 crores , An increase of 17.7% in exports

Question Long Terms capital consists of mainly transactions in :-
Correct Answer Equities , Loans , Real Estate
Your Answer Equities , Loans , Real Estate
True/False
markets
Your Answer False
True/False
Question India has a natural competitive advantage in agricultural exports
because of lower need of inputs, reasonable labour cost and
diverse agro-climatic conditions.
Correct Answer True
Your Answer True
Select The Blank

Question International Gold Standard is one form of ________.
Correct Answer Fixed exchange System for adjustment of BOP
Your Answer Fixed exchange System for adjustment of BOP
True/False
Question Under the Gold Standard burden of adjustment is on Internal
Economy.
Correct Answer True
Your Answer True

its

Question On the eve of planning 1948-49 to 1950-51 there was a rise in
imports largely due to
Correct Answer Pent up demand of the war and the post war period
Your Answer Pent up demand of the war and the post war period
Select The Blank

Question Santa Cruz Export Processing Zone established in ________.
Correct Answer 1974
Your Answer 1974
Select The Blank

Your Answer Gross
Match The Following

Developed countries such A range of financial Contributes to funds of

as Japan, USA, Canada, services companies and ADB
West Germany, Australia provide technical
etc. assistance
Asian development bank Make its investments in Development of the
(ADB) has been partnership with investors developing countries under
establishment to from the capital exporting its region
country
features of IFC's Facilitate free trade within Make its investments in
assistance countries partnership with investors
from the capital exporting
country
In India, IFC will invest in Development of the A range of financial
developing countries services companies and
under its region provide technical
assistance
Select The Blank

Question ________ has commented on adverse impact of exports due to
Correct Answer Tandon committee
Your Answer Tandon committee
True/False
Question International Monetary Fund was established to create a
monetary system that would provide relief and reconstruction to
the countries affected by World War.
Your Answer False

Question India is world leader in :-
Correct Answer Tea production
Your Answer Tea production
Select The Blank

Question During ________ plan period the average annual trade deficit
reached its peak
Correct Answer Seventh
Your Answer Ninth

Question The invisible Accounts consists of services provided such as :-
Correct Answer Travel, Gifts etc
Your Answer Travel, Gifts etc

Question Whenever under the trade policy, the import of any item is
subjected to an import the banks should not open any letter of
credit or effect any remittance unless the original
Correct Answer Exchange control copy of the license is submitted
Your Answer Exchange control copy of the license is submitted
True/False
Question Membership of IMF is the principle condition for membership of
the world bank
Correct Answer True
Your Answer True

Question Letters of credit can be opened and/or remittances can be
effected by a person other than the importer himself :-
Correct Answer On the strength of the letter of authority issued by the importer
in the name of such a person
Your Answer On the strength of the letter of authority issued by the importer

Question The principles of non-discriminations of WTO requires that
Correct Answer All trading partners shall be granted the most fevoured nation
status (MFN)
Your Answer All trading partners shall be granted the most fevoured nation
status (MFN)

Question CIS stands for
Correct Answer Commonwealth of independent states
Your Answer Commonwealth of independent states

Question Measures which could be taken for reducing disequilibrium in
BOP as per Pegged System are :-
Correct Answer Raising interest rates , Discourage imports , Encourage Capital
inflows.
Your Answer Raising interest rates , Discourage imports , Encourage Capital
inflows.

Question The value of rupee was devalued by 36.5% in June 1966
because of
Correct Answer Persistent adverse balance of trade since 1951 , Acute shortage
of foreign exchange , Extensive borrowing by India from foreign
countries
Your Answer Persistent adverse balance of trade since 1951 , Acute shortage
countries
True/False
Question By being part of WTO, India does not enjoy many benefits.
Your Answer False

Question FCNR Operations details are sent to RBI on :-
Correct Answer STAT 6 From
Your Answer STAT 6 From
Select The Blank

Question Massive programmes of industrialization were initiated during
________ plan period.
Correct Answer Second
Your Answer Second

Question The status holders will be eligible for the following new facilities
Correct Answer Fixation of input-output norms on priority , 100% retention of

foreign exchange in EEFC account , Enhancement in normal
repatriation period from 180 to 360 days
Your Answer Fixation of input-output norms on priority , 100% retention of

Question Mechanisms available for adjustments of BOP are :-
Correct Answer Changes in Income , Changes in Prices , Changes in Interest

Rates
Your Answer Changes in Income , Changes in Prices , Changes in Interest
Rates

Question Exporters are entitled to following subsidies :-
Correct Answer Air Freight subsidy , Export Credit Interest rates , Excise duties
Your Answer Air Freight subsidy , Export Credit Interest rates , Excise duties
True/False
Question For the exports to Nepal and Bhutan payment has to be in their
respective currencies
Your Answer True
Select The Blank

Question GR and SDF forms in duplicate are to be submitted to the
________
Correct Answer Commissioner of Customs
Your Answer Commissioner of Customs

Question For exchange control purposes the Rupee account of
Bhutanese and Nepalese nationals and firms, maintained with
any Indian Banks are treated as
Correct Answer Resident account
Your Answer Resident account
Select The Blank

Question India was forced to devalue the rupee by 36.5 percent in
June________
Correct Answer 1966
Your Answer 1966
Match The Following

one major controversy of Agricultural subsidies Agricultural subsidies

GATT is the issue related
to
The WTO agreement has Learnt developed Developing countries have
many provisions granting countries are exempted been given extra time to
special favours to from fulfilling their fulfill their comments
developing & learnt commitments
developed countries
Uruguay Round of Developing countries India should withdraw from
agreements have come in have been given extra GATT
India & many politicians time to fulfill their
have agreed that comments
The Uruguay round Developed countries Developed countries
mostly benefit

Select The Blank

True/False
Correct Answer True
Your Answer True
Select The Blank

True/False
Your Answer True

Select The Blank


authorities are :-
Foreign state
Foreign state
Select The Blank



True/False
Correct Answer True
Your Answer True


Select The Blank

Match The Following


export returns
export returns
service service
Select The Blank

Match The Following



Select The Blank

Select The Blank



True/False
countries
Correct Answer True
Your Answer True





in

namely :-
Pearls
Pearls
True/False
Correct Answer True
Your Answer True

Select The Blank

canalised.
Correct Answer 0.46
Your Answer 0.46



True/False
Correct Answer True
Your Answer True
True/False
Correct Answer True
Your Answer True


creates:-
Interest rates
Interest rates


engaged in :-
Select The Blank

countries
Correct Answer 80
Your Answer 80

Correct Answer Tea
Your Answer Tea
True/False
of Handicraft
Correct Answer True
Your Answer True


technology
technology


Select The Blank
Your Answer Small


Question The major market for handicrafts and jewellery include
Correct Answer UK , USA , Germany
Your Answer UK , USA , Germany

True/False
Question The trade balance was positive during the year 2000-01
amounting to approx US$ 1 Bill only.
Your Answer False

Dollars , Lack of support to developing countries
Select The Blank

Question Free trade may encourage the import of ________ products in
the country and hunt the interest of the nations
Correct Answer Harmful
Your Answer Harmful

Question Pre Shipment inspection is part of :-
Correct Answer Export promotion by maintaining quality
Your Answer Export promotion by maintaining quality



Question Remittance against imports should be completed within
Correct Answer 6 months from the data of import
Your Answer 6 months from the data of import
True/False
Question WTO is simply renaming of GATT an d the there is no major
difference
Your Answer False

Question One of the major issues related to the controversy of GATT was
the issue of
Correct Answer Agricultural subsidies
Your Answer Agricultural subsidies

Question Where the import is in a non-physical form(e.g. data over
internet) :-
Correct Answer A certificate from the chartered accountant to the effect that the
Your Answer A certificate from the chartered accountant to the effect that the

Question If after taking all the efforts, the export bill is not realized to write
off the bill with supporting documentary evidence the bank will
consider the case subject to following conditions :-
Correct Answer The bill is outstanding for over a year , The total amount of
efforts
Your Answer The bill is outstanding for over a year , The total amount of
efforts

Question The theory of comparative costs was put forth by :-
Correct Answer Classical economists
Your Answer Classical economists
True/False
Question Consignment exports means goods dispatched to the agent of
the exporter on sale or return basis
Correct Answer True
Your Answer True


Question The general council will serve following main functions:
Correct Answer To act as dispute settlement body , To establishment goods

revised agreements
Your Answer To act as dispute settlement body , To establishment goods
revised agreements

Question The WTO deals with the special needs of the developing
countries in three ways
Correct Answer It contain special provision on developing countries , It has a
Your Answer It contain special provision on developing countries , It has a


Question India's contribution in the World Trade in 1950 was :-

Your Answer 0.018

Question Government approval for Joint Venture with Small Scale sector
is given by :-
Correct Answer District Industrial Centre
Your Answer Director General Foreign Trade
True/False
Question Membership in the world bank is optional & not prerequisite for
membership in International Finance Corporation (IFC)
Your Answer False


Your Answer It increases lower levels of output

Your Answer Free trade policy

Question Objectives of Planning Commission were:-
Correct Answer Augment infrastructure , Formulation of policies for growth ,

Your Answer Augment infrastructure , Formulation of policies for growth ,

Question Bertil Ohlin :-
Correct Answer Contends that there is no difference between domestic and

foreign trade , Is not a classical economist , Is a modern
economist
Your Answer Is a modern economist , Contends that there is no difference
between domestic and foreign trade , Is not a classical
economist

Question Labour is not mobile between countries because of :-
Correct Answer Difference in languages , Difference in customs , Occupational

skills
Your Answer Difference in languages , Difference in customs , Occupational
skills
Select The Blank

Question The woolen industry in the country is ________ in size and
widely scattered
Your Answer Small
True/False
Question Export growth was slow due to lack of value addition.
Correct Answer True
Your Answer True


investments
Select The Blank

Question The current account deficit in 1999 was ________ of GDP.
Your Answer 0.9.5%

Question Classical economists :-
Correct Answer Say that there is a fundamental difference between domestic

Your Answer Say that there is a fundamental difference between domestic

Question The data regarding sale and purchase of foreign currencies by
FCNR account holders is maintained by :-
Correct Answer DEIO
Your Answer Authorised Dealers
Select The Blank

Question With a view to boost agricultural exports and provide
remunerative returns to the farming community, the export-
import policy 2002-2007 proposed the setting up of________
Correct Answer Agricultural Export Zones
Your Answer Agricultural Export Zones

Question Asian Development bank was set up in December 1966 under
the auspices of the
Correct Answer United Nations Economics Commission for Asia and Far East (
ECAFE)
Your Answer United Nations Economics Commission for Asia and Far East (
ECAFE)

Question Transportation Credit includes ……….
Correct Answer Freight on exports , remittances received by Shipping/Air lines ,

Your Answer Freight on exports , remittances received by Shipping/Air lines ,
True/False
Your Answer True
Select The Blank

Question Most of the leather exports go to highly industrialized country
like________
Correct Answer America
Your Answer America
True/False
Question Trade samples of goods and publicity materials supplied free of
payment are exempted from declaration in the form prescribed
by RBI
Correct Answer True
Your Answer True


Select The Blank

Question Capital fund flows have been augmented by SBI with floating of
________.
Correct Answer India Millennium Deposits
Your Answer India Millennium Deposits
True/False
Question A deficit occurs when Autonomous Transactions give rise to
receipts as against payments.
Your Answer True
Select The Blank

Question India's Trade Policy makers have realized that there is no
alternative but to give thrust to the ________.
Correct Answer Export
Your Answer Export
Match The Following

ECB External Commercial External Commercial

Borrowings Borrowings
FCNR Foreign Currency Non Foreign Currency Non
Resident Account Resident Account
SDR Special Drawings Rights Special Drawings Rights
GDP Gross Domestic Product Gross Domestic Product
Match The Following

DTA Domestic Tariff Area Domestic Tariff Area
MODVAT Modified Value Added Modified Value Added Tax

Tax
IRPS International Price International Price
Reimbursement Scheme Reimbursement Scheme
CCS Cash Compensatory Cash Compensatory
Support Scheme Support Scheme
Select The Blank

Question In UP Export Processing Zone is established in ________.
Correct Answer Noida
Your Answer Noida

Select The Blank


Question Travel credits are :-
Correct Answer Foreign exchange received from abroad for tourist/ students
Your Answer Foreign exchange received from abroad for tourist/ students
Select The Blank

Question Agency commission is not allowed to be remitted in case of
exports under ________ credit route.
Correct Answer Rupee
Your Answer Rupee

Question During the second plan period
Correct Answer Food grains import had to be resorted to overcome internal

shortages
Your Answer Food grains import had to be resorted to overcome internal
shortages

Question One of oldest organized industries is
Correct Answer Indian Textiles
Your Answer Indian Textiles

Question Prohibited Imports and Exports are punishable under :-
Correct Answer Section 11 of the Customs Act
Your Answer Section 11 of the Customs Act

Question The woolen industry in the country is basically located in the
state of :-
Correct Answer Punjab
Your Answer Punjab
Select The Blank

Question The gems & jewellery export sector is highly________ oriented
Correct Answer Import
Your Answer Import

Question The agreements of WTO :-
Correct Answer Spell out principles of liberalization , Set procedures for settling
Your Answer Spell out principles of liberalization , Set procedures for settling
True/False
Question Capital Account of BOP has undergone major structural change
in favour of Non Debt creating Foreign Investment inflows.
Correct Answer True
Your Answer True

Question Faceless presence of Indian exporters in International market is
denoted by :-
Correct Answer Maintaining quality , In ability to export in consumer packs ,
Create market for the brand
Your Answer In ability to export in consumer packs , Create market for the
brand , Maintaining quality

Question Export prices are high because of :-
Correct Answer Economies of scale not available
Your Answer Economies of scale not available
Select The Blank

Question Declaration of export in PP forms are required for exports in
physical form through________
Correct Answer Post
Your Answer Post

Correct Answer A surplus of Rs 32,558 crores , An increase of 17.7% in exports

Your Answer A surplus of Rs 32,558 crores , An increase of 17.7% in exports

Question Long Terms capital consists of mainly transactions in :-
Correct Answer Equities , Loans , Real Estate
Your Answer Equities , Loans , Real Estate
True/False
markets
Your Answer False
True/False
Question India has a natural competitive advantage in agricultural exports
because of lower need of inputs, reasonable labour cost and
diverse agro-climatic conditions.
Correct Answer True
Your Answer True
Select The Blank

Question International Gold Standard is one form of ________.
Correct Answer Fixed exchange System for adjustment of BOP
Your Answer Fixed exchange System for adjustment of BOP
True/False
Question Under the Gold Standard burden of adjustment is on Internal
Economy.
Correct Answer True
Your Answer True

its

Question On the eve of planning 1948-49 to 1950-51 there was a rise in
imports largely due to
Correct Answer Pent up demand of the war and the post war period
Your Answer Pent up demand of the war and the post war period
Select The Blank

Question Santa Cruz Export Processing Zone established in ________.
Correct Answer 1974
Your Answer 1974
Select The Blank

Your Answer Gross
Match The Following

Developed countries such A range of financial Contributes to funds of

as Japan, USA, Canada, services companies and ADB
West Germany, Australia provide technical
etc. assistance
Asian development bank Make its investments in Development of the
(ADB) has been partnership with investors developing countries under
establishment to from the capital exporting its region
country
features of IFC's Facilitate free trade within Make its investments in
assistance countries partnership with investors
from the capital exporting
country
In India, IFC will invest in Development of the A range of financial
developing countries services companies and
under its region provide technical
assistance
Select The Blank

Question ________ has commented on adverse impact of exports due to
Correct Answer Tandon committee
Your Answer Tandon committee
True/False
Question International Monetary Fund was established to create a
monetary system that would provide relief and reconstruction to
the countries affected by World War.
Your Answer False

Question India is world leader in :-
Correct Answer Tea production
Your Answer Tea production
Select The Blank

Question During ________ plan period the average annual trade deficit
reached its peak
Correct Answer Seventh
Your Answer Ninth

Question The invisible Accounts consists of services provided such as :-
Correct Answer Travel, Gifts etc
Your Answer Travel, Gifts etc

Question Whenever under the trade policy, the import of any item is
subjected to an import the banks should not open any letter of
credit or effect any remittance unless the original
Correct Answer Exchange control copy of the license is submitted
Your Answer Exchange control copy of the license is submitted
True/False
Question Membership of IMF is the principle condition for membership of
the world bank
Correct Answer True
Your Answer True

Question Letters of credit can be opened and/or remittances can be
effected by a person other than the importer himself :-
Correct Answer On the strength of the letter of authority issued by the importer
Your Answer On the strength of the letter of authority issued by the importer

Question The principles of non-discriminations of WTO requires that
Correct Answer All trading partners shall be granted the most fevoured nation
status (MFN)
Your Answer All trading partners shall be granted the most fevoured nation
status (MFN)

Question CIS stands for
Correct Answer Commonwealth of independent states
Your Answer Commonwealth of independent states

Question Measures which could be taken for reducing disequilibrium in
BOP as per Pegged System are :-
Correct Answer Raising interest rates , Discourage imports , Encourage Capital
inflows.
Your Answer Raising interest rates , Discourage imports , Encourage Capital
inflows.

Question The value of rupee was devalued by 36.5% in June 1966
because of
Correct Answer Persistent adverse balance of trade since 1951 , Acute shortage
countries
Your Answer Persistent adverse balance of trade since 1951 , Acute shortage
countries
True/False
Question By being part of WTO, India does not enjoy many benefits.
Your Answer False

Question FCNR Operations details are sent to RBI on :-
Correct Answer STAT 6 From
Your Answer STAT 6 From
Select The Blank

Question Massive programmes of industrialization were initiated during
________ plan period.
Correct Answer Second
Your Answer Second

Question The status holders will be eligible for the following new facilities
Correct Answer Fixation of input-output norms on priority , 100% retention of

Your Answer Fixation of input-output norms on priority , 100% retention of

Question Mechanisms available for adjustments of BOP are :-
Correct Answer Changes in Income , Changes in Prices , Changes in Interest

Rates
Your Answer Changes in Income , Changes in Prices , Changes in Interest
Rates

Question Exporters are entitled to following subsidies :-
Correct Answer Air Freight subsidy , Export Credit Interest rates , Excise duties
Your Answer Air Freight subsidy , Export Credit Interest rates , Excise duties
True/False
Question For the exports to Nepal and Bhutan payment has to be in their
respective currencies
Your Answer True
Select The Blank

Question GR and SDF forms in duplicate are to be submitted to the
________
Correct Answer Commissioner of Customs
Your Answer Commissioner of Customs

Question For exchange control purposes the Rupee account of
Bhutanese and Nepalese nationals and firms, maintained with
any Indian Banks are treated as
Correct Answer Resident account
Your Answer Resident account
Select The Blank

Question India was forced to devalue the rupee by 36.5 percent in
June________
Correct Answer 1966
Your Answer 1966
Match The Following

one major controversy of Agricultural subsidies Agricultural subsidies

GATT is the issue related
to
The WTO agreement has Learnt developed Developing countries have
many provisions granting countries are exempted been given extra time to
special favours to from fulfilling their fulfill their comments
developing & learnt commitments
developed countries
Uruguay Round of Developing countries India should withdraw from
agreements have come in have been given extra GATT
India & many politicians time to fulfill their
have agreed that comments
The Uruguay round Developed countries Developed countries
mostly benefit

Select The Blank

True/False
Correct Answer True
Your Answer True
Select The Blank

True/False
Your Answer True

Select The Blank


authorities are :-
Foreign state
Foreign state
Select The Blank



True/False
Correct Answer True
Your Answer True


Select The Blank

Match The Following


export returns
export returns
service service
Select The Blank

Match The Following



Select The Blank

Select The Blank



True/False
countries
Correct Answer True
Your Answer True





in

namely :-
Pearls
Pearls
True/False
Correct Answer True
Your Answer True

Select The Blank

canalised.
Correct Answer 0.46
Your Answer 0.46



True/False
Correct Answer True
Your Answer True
True/False
Correct Answer True
Your Answer True


creates:-
Interest rates
Interest rates


engaged in :-
Select The Blank

countries
Correct Answer 80
Your Answer 80

Correct Answer Tea
Your Answer Tea
True/False
of Handicraft
Correct Answer True
Your Answer True


technology
technology


Select The Blank
Your Answer Small

a)
1980-82
b) 1981-82
c) 1982-83
d) 1979-80
25.
34.
a)

45.
a)
STAT 5 From
b) STAT 4 From
c) STAT 3 Form
d) STAT 10 Form
a)
Modern economists
:-
a)

because of :-
invisibles
software exports
True/False
Your Answer False
Select The Blank

________.
Select The Blank

issue of ________.
True/False
Correct Answer True
Your Answer False

Select The Blank


True/False
markets
Your Answer True


Select The Blank


Match The Following


Reserves Reserves

Investor Investor
True/False
Correct Answer True
Your Answer True



Your Answer USA








True/False
Correct Answer True
Your Answer True

to :-
Correct Answer 0.74
Your Answer 0.71
Select The Blank

countries
Correct Answer 80
Your Answer 80

True/False
materials.
Correct Answer True
Your Answer False


True/False
Your Answer True

its
True/False
Correct Answer True
Your Answer True
True/False
Correct Answer True
Your Answer True

was
Match The Following



Programme Programme
Programme Programme
Select The Blank

Select The Blank



BOP


investments
Select The Blank

Correct Answer CIF
Your Answer CIF

Your Answer China
True/False
countries
Correct Answer True
Your Answer True

namely :-
Pearls



Question Who issues guidelines for Direct Investments abroad by any
Indian?
Correct Answer Exchange Control Department of RBI
Your Answer Exchange Control Department of RBI

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
Match The Following

Returning NRI RFC INVESTMENT IN MMMF
NRI Deposits FCNR, NRE Investment in GDR, ADR
NRIS AND OCBS INVESTMENT IN MMMF FCA
EXPORTERS EEFC FCNR, NRE
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
True/False
Question Cash flows generated from aforeign project may replace
revenue-producing imports to the host country
Your Answer True
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
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 Gold

Question What is the meaning of right to buy or sell the future
contract?
Correct Answer An Option
Your Answer An Option

Question Financial management is complex process for
Correct Answer Companies which have international trade
Your Answer Companies which have international trade
True/False
Question Bid rate is bidders buying rate and offered rate is
bidders selling rate.
Correct Answer True
Your Answer True

Question A Dealer Buys commodity in Bombay and sells it in Delhi
due to price differentials. He is said to be resorting to which
practice?
Correct Answer Arbitrage
Your Answer Cash market
True/False
Question Head office of ICC is in Paris because of its First
President Eliance Clementel.
Correct Answer True
Your Answer True

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
Select The Blank

Question A Credit can be a confirmed credit only if it is also
________.
Correct Answer An Irrevocable credit
Your Answer Anticipatory Credit
Select The Blank

Question ________ is the price at which the market maker is
prepared to borrow the money.
Correct Answer Bid rate
Your Answer Selling price
True/False
Question Sandby credis are introduced by US Banks because they were
not permitted to issue on demand guarantees.
Correct Answer True
Your Answer True

Question How does ECGC protect exporters against risks for export
finance
Correct Answer Issuing various insurance policies covering
different risks connected with exports at nominal premium
Your Answer Issuing various insurance policies covering different
risks connected with exports at nominal premium

Question What are the functions of Export Import Bank of India?
Correct Answer Finance functions and development functions
Your Answer Commercial Banking, development Banking functions

Question What were the primary objectives of the group of seven
countries?
Correct Answer Bring down the external value of US Dollar , Bring
some stability to exchange rates of all the countries
Your Answer Bring down the external value of US Dollar , Bring some
stability to exchange rates of all the countries
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

Question Samuraibonds are
Correct Answer Foreign yen bonds issued to non resident entities in
Japanese Market
Your Answer Yen bonds issued in USA

Question Name the members of Exchange Banks association :-
Correct Answer Foreign Banks at Bombay, Calcutta, Delhi, Madras,
Amritsar,
Your Answer Foreign Banks at Bombay, Calcutta, Delhi, Madras,
Amritsar,

Question Export finance
Correct Answer Preshipment credit , Post shipment credit , Duty
Draw back
Your Answer Post shipment credit , Duty Draw back

Question How many Countries participated in the third survey on
Foreign Exchange, coordinated by BIS in 1992?
Correct Answer 26
Your Answer 25
Select The Blank

Question FRNs are issued for a maturity period of ________ and are
normally redeemed in one shot.
Correct Answer 5-7 years
Your Answer 1 to 3 years

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

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

Question Which Indian Co. is not eligible to make investment abroad
under automatic route?
Correct Answer Co which is caution listed by RBI
Your Answer Co. which may not have proposed activity as core
activity

Question The maximum period for which a forward contract can be
granted by the AD depends upon which RBI directives?
Correct Answer Maximum Period of repatriation of export proceeds ,
Maximum Period of payment for Imports
Your Answer Maximum Period of payment for Imports , The need of the
importer

Question As regards the due date of an Option exercise which
methods are in vogue?
Correct Answer American option , European Option
Your Answer American option , European Option , Exercise date

Question Which is the most actively traded currency in the
international market today?
Correct Answer US Dollar
Your Answer US Dollar

Question Mr A sells an option conferring the right to buy a
kilogram of silver at Rs 8000/- for next six months means :-
Correct Answer The buyer of option can buy silver from Mr A at
8000/- per Kg, in next 6 months, even if the price goes up, , The buyer
of option can sell silver to Mr A at 8000/- per Kg, in next 6 months,
even if the price goes down.
Your Answer The buyer of option can buy silver from Mr A at 8000/-
per Kg, in next 6 months, even if the price goes up, , The buyer of
option can sell silver to Mr A at 8000/- per Kg, in next 6 months, even
if the price goes down.
True/False
Question Funding Options in domestic yen market are Futures, FRAs,
Call and put options.
Correct Answer True
Your Answer True

Question Whose permission was necessary for forming the Association
of Foreign Exchange Dealers, in India?
Correct Answer Reserve Bank of India
Your Answer Reserve Bank of India
Match The Following

16 principles for good environmental conduct Business Charter of

sustainable development Business Charter of sustainable development
World Chambers Congress World Federation of Chambers World Federation

of Chambers
ICC Conference in 2004 Marrakesh Marrakesh
13 types of trade contracts INCOTERM Commercial crime Bureau
Select The Blank

Question Hotels and Airline companies are allowed to receive
payments in Indian rupees from foreign tourist without insis iting on
________.
Correct Answer Encashment certificate
Your Answer Foreign currency

Question Fixed, Floating or Limited flexibility are used in the
context of
Correct Answer Exchange Rates
Your Answer Exchange Rates

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 greater intrinsic
value
Select The Blank

Question Forward Margin makes a currency costlier then the currency
is at ________.
Correct Answer Premium
Your Answer Loss
Select The Blank

Question The rate of interest on rupee finance for exports is not
exceeding ________ less than PLR.
Your Answer 50 basis points over LIBOR
Select The Blank

Question The creditworthiness of futures exchange is maintained
through imposition of ________.
Correct Answer Margin
Your Answer Penalty
True/False
Question The volume of trading of Derivatives in the world trade
market is growing but still only 5% of the total.
Your Answer True
True/False
Question With the advent of futures and Options there is no need
for additional instruments of risk hedging.
Your Answer True
True/False
Question Charter party bills of lading are generally not acceptable
to bankers as security because Sea Charters are full of problems.
Correct Answer True
Your Answer True

Question In which cases can a Resident Individual in India acquire
foreign securities without prior approval?
Correct Answer Gift from a person outside India, or Inheritance
from a person resident in or outside India , Security issued under
Cashless employees stock option scheme
Your Answer Purchased from NRO/NRNR accounts , Purchase from
borrowings from Authorised dealers
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
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

Indian?

Question What does a speculator accept while dealing with an
option?
Correct Answer The exercise or strike price, the amount , The
Your Answer The exercise or strike price, the amount , The
Match The Following

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
True/False
Your Answer True
Select The Blank

________.
Select The Blank

Correct Answer Gold
Your Answer Gold

Question What is the meaning of right to buy or sell the future
contract?

True/False
Question Bid rate is bidders buying rate and offered rate is
bidders selling rate.
Correct Answer True
Your Answer True

Question A Dealer Buys commodity in Bombay and sells it in Delhi
due to price differentials. He is said to be resorting to which
practice?
True/False
Question Head office of ICC is in Paris because of its First
President Eliance Clementel.
Correct Answer True
Your Answer True

came from June 92?
Select The Blank

Question A Credit can be a confirmed credit only if it is also
________.
Select The Blank

Question ________ is the price at which the market maker is
prepared to borrow the money.
True/False
Question Sandby credis are introduced by US Banks because they were
not permitted to issue on demand guarantees.
Correct Answer True
Your Answer True

finance
Correct Answer Issuing various insurance policies covering
different risks connected with exports at nominal premium
Your Answer Issuing various insurance policies covering different
risks connected with exports at nominal premium


countries?
Correct Answer Bring down the external value of US Dollar , Bring
some stability to exchange rates of all the countries
Select The Blank

Question ________ is the agency of ICC which deals with the
maritime crime.

Japanese Market

Amritsar,
Your Answer Foreign Banks at Bombay, Calcutta, Delhi, Madras,
Amritsar,

Correct Answer Preshipment credit , Post shipment credit , Duty
Draw back

Question How many Countries participated in the third survey on
Foreign Exchange, coordinated by BIS in 1992?
Correct Answer 26
Your Answer 25
Select The Blank


Question What was the official foreign currency reserve of the
group of seven central Banks taken togeather in mid 1992?

Question What is the volume of the world's total speculative
transactions?

Question Which Indian Co. is not eligible to make investment abroad
under automatic route?
Your Answer Co. which may not have proposed activity as core
activity

importer

Question As regards the due date of an Option exercise which
methods are in vogue?

Question Which is the most actively traded currency in the
international market today?

Question Mr A sells an option conferring the right to buy a
kilogram of silver at Rs 8000/- for next six months means :-
Correct Answer The buyer of option can buy silver from Mr A at
8000/- per Kg, in next 6 months, even if the price goes up, , The buyer
of option can sell silver to Mr A at 8000/- per Kg, in next 6 months,
even if the price goes down.
Your Answer The buyer of option can buy silver from Mr A at 8000/-
per Kg, in next 6 months, even if the price goes up, , The buyer of
option can sell silver to Mr A at 8000/- per Kg, in next 6 months, even
if the price goes down.
True/False
Question Funding Options in domestic yen market are Futures, FRAs,
Call and put options.
Correct Answer True
Your Answer True

Question Whose permission was necessary for forming the Association
of Foreign Exchange Dealers, in India?
Match The Following

16 principles for good environmental conduct Business Charter of

sustainable development Business Charter of sustainable development

of Chambers
Select The Blank

Question Hotels and Airline companies are allowed to receive
payments in Indian rupees from foreign tourist without insis iting on
________.

Question Fixed, Floating or Limited flexibility are used in the
context of

Correct Answer Which are convertible , Which have liquidity
Your Answer Which are convertible , Which have greater intrinsic
value
Select The Blank

Question Forward Margin makes a currency costlier then the currency
is at ________.
Your Answer Loss
Select The Blank

Select The Blank

Question The creditworthiness of futures exchange is maintained
through imposition of ________.
Your Answer Penalty
True/False
Question The volume of trading of Derivatives in the world trade
market is growing but still only 5% of the total.
Your Answer True
True/False
Question With the advent of futures and Options there is no need
for additional instruments of risk hedging.
Your Answer True
True/False
Question Charter party bills of lading are generally not acceptable
to bankers as security because Sea Charters are full of problems.
Correct Answer True
Your Answer True

Question In which cases can a Resident Individual in India acquire
foreign securities without prior approval?
Correct Answer Gift from a person outside India, or Inheritance
from a person resident in or outside India , Security issued under
Select The Blank

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 counter party in option is ________.
Correct Answer The exchange
Your Answer The exchange
Select The Blank

Question An exchange rate for $ was48.2050, it is now 48.2075, then one says that it has moved
________ basis points
Correct Answer 25
Your Answer 25
True/False
Question Cross currency forward contract is not meaningful if original contract is in Rupees to USD
Correct Answer True
Your Answer True

Question What do you understand by a swap?
Correct Answer 2 counter parties agree to exchange streams of payments over a period of time
Your Answer 2 counter parties agree to exchange streams of payments over a period of time
True/False
Question ECGC offers insurance protection to Indian exporters against payment risks.
Correct Answer True
Your Answer True
Select The Blank

Question Value of US Dollar is ________ in the world market but RBI is trying to match the Rupee
value with it.
Correct Answer Depreciating
Your Answer Depreciating

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

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

Question Borrower from a developing country can borrow from US market
Correct Answer Only if it has high credit rating and the country's Govt gives a guarantee for the
same.
Your Answer Only if it has high credit rating and the country's Govt gives a guarantee for the same.

Question What was the purpose of reviewing FERA 1973 in the year 1993?
Correct Answer Economic Liberalisation relating to Foreign trade and Foreign investments
Your Answer Economic Liberalisation relating to Foreign trade and Foreign investments
Select The Blank

Question Legalised invoice is also called ________ invoice.
Correct Answer Visaed
Your Answer Visaed

Question In Import financing through trust receipts, with whom does the ownership of goods
remain?
Correct Answer Bank releasing the import documents
Your Answer Exporter

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 sale contract any time from May 2005 till Mid Sept 2005, for Euro
True/False
Question An Indian exporting goods to New York receives dollars in New York.
Correct Answer True
Your Answer True

Question At the request of M/s Universal Traders Calcutta, State Bank of India opened a
documentary credit in Favour of M/s Star Trading Co Dubai, for USD 25000/-.Here State Bank of
India Calcutta is known as
Correct Answer Issuing Bank , Opening Bank
Your Answer Issuing Bank , Opening Bank

Question The integrated treasury branches of commercial banks handle which type of business?
Correct Answer Forex transactions, Derivatives transactions , Mney market and bond market
transactions
Your Answer Forex transactions, Derivatives transactions , Mney market and bond market
transactions
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
Match The Following

LastStage Form a single currency Form a single currency
The First stage in the Europeand and Monetary Union (EMU) Free movement of capital in EC Free
movement of capital in EC
Stage II in EMU Establishment of European Monetary Institute Establishment of European Monetary

Institute
Stage III in EMU Members to meet the convergence criteria and fix the exchange rates Members to
meet the convergence criteria and fix the exchange rates

Question What do you call a 'decreasing principal swap'?
Correct Answer Amortizing swap
Your Answer Amortizing swap

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

Question Which of them are special funding facilities of IMF ?
Correct Answer Buffer Stock Facility
Your Answer Buffer Stock Facility

Question Mr A an Indian exporter is expecting to receive payment for exports in Hong kong dollar,
after one month; How can he cover the exchange rate fluctuation risk?
Correct Answer By booking a A forward contract in HKD itself , By booking a Cross currency
option between USD and HKD and / or USD and Rs
Your Answer By booking a A forward contract in HKD itself , By booking a Cross currency option
between USD and HKD and / or USD and Rs
True/False
Question Bridge Loans are granted for construction of large size bridges, and flyovers.
Your Answer True
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
Match The Following

Investment under Automatic route Form ODA Form ODA
Proposal under non-automatic route RBI RBI
Proposal under Normal route Special Committee Special Committee
Investment by partnerships not in core activity form ODI form ODI

Question Name the services provided by 'Reuter 3000' in forex market:-
Correct Answer Quotation of forex rates, interest rates , Electronic broking by matching the rates
Your Answer Quotation of forex rates, interest rates , Electronic broking by matching the rates

Question Before abandoning the Fixed exchange rate system, the Dollar gold parity was fixed by
USA at
Correct Answer USD 35 per Ounce of gold
Your Answer USD 35 per 10 grams of gold
Select The Blank

Question After the Second World War many countries adopted the route of ________ to give
facelift to sagging economies.
Correct Answer Devaluation of their currencies
Your Answer Devaluation of their currencies
True/False
Question Country risk analysis is a futile exercise in the background of cost of analysis.
Correct Answer True
Your Answer True

Question Which factors affect the exchange rates in short time period?
Correct Answer Demand and supply, interest rates, inflation, , Sentiment, Speculation
Your Answer Demand and supply, interest rates, inflation, , Sentiment, Speculation , Literacy,
Health of people

Question A country needs external commercial borrowings to :-
Correct Answer Meet the adverse balance of payments position
Your Answer Meet the adverse balance of payments position

Question With whom can an exporter or importer book the forward contract?
Correct Answer Authorised dealer/Authorised person
Your Answer Authorised dealer/Authorised person

Question World Bank gives loans for
Correct Answer Structural Adjustments, Infrastructure projects, BOP problems
Your Answer Structural Adjustments, Infrastructure projects, BOP problems

Question Who can issue the Certificate of Inspection?
Correct Answer Export Inspection Council, Person authorized by Importer.
Your Answer Export Inspection Council, Person authorized by Importer.
True/False
Question In red clause credit some clauses are printed in Red ink.
Correct Answer True
Your Answer True
True/False
Question Out of 15 member countries in European Union 12 countries committed themselves for a
single currency.
Your Answer False
Select The Blank
Question FRNs are issued for a maturity period of ________ and are normally redeemed in one
shot.
Your Answer 5-7 years

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
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
Select The Blank

Question A Credit can be a confirmed credit only if it is also ________.
Your Answer Redclause credit

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
Select The Blank

Question A ________ Bill of lading does not specify the terms and conditions of carriage.
Correct Answer Short Form
Your Answer Copy of

Question How does ECGC protect exporters against risks for export finance
Correct Answer Issuing various insurance policies covering different risks connected with exports at
nominal premium
Your Answer Issuing various guarantees covering different risks connected with exports at nominal
premium,
True/False
Question Sterling FRNs are issued in Europe, USA ,Asia
Your Answer True
Select The Blank

Question Forward Margin makes a currency costlier then the currency is at ________.
Your Answer Premium

Question Transaction exposures arises because of: -
Correct Answer The cost of settlement of future payment changes, Receipt denominated in a foreign
currency varies due to exchange rate fluctuation
Your Answer The cost of settlement of future payment changes, Receipt denominated in a foreign
currency varies due to exchange rate fluctuation , Pricing of assets and liabilities in different countries
True/False
Question In a coupon swap the receiver is the one who receives fixed rate
of interest.
Correct Answer True
Your Answer True

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 , It is an
undertaking given by the openers bank to pay certain sum of
money
True/False
Question Normally the forward contracts are booked for making huge
profits.
Your Answer True

Question What do you understand by a forex option?
Correct Answer Right and not the obligation to take or give future delivery of an
agreed quantity at certain price
Your Answer Right and not the obligation to take or give future delivery of an

Question In case the value date happens to be a holiday then the
settlement is done :-
Correct Answer On the next working day
Your Answer On the next working day
True/False
Question Postal receipt is an acknowledgement of receipt of goods, a
quasi negotiable instrument.
Your Answer True
True/False
Question Open Insurance policy is for any amount for specific period and
specific number of shipments.
Your Answer False

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

Question Whose permission was necessary for forming the Association of
Foreign Exchange Dealers, in India?

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.
Select The Blank

Question The international liquidity problem was tackled effectively by a
reserve asset known as ________.
Correct Answer Special drawing right
Your Answer Special drawing right
Select The Blank

Question During the fixed rate exchange system prevailing in India, the
intervention currency was ________.
Correct Answer Sterling Pound
Your Answer USDollar
True/False
Question Resident Individuals in India can acquire foreign bonus shares
on the foreign securities already held by them without prior
approval of RBI
Correct Answer True
Your Answer False

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

Question What are the functions of International Finance Corporation?
Correct Answer Help private enterprise by financing projects , Provide technical

assistance to private enterprise
Your Answer Help private enterprise by financing projects , Provide technical
True/False
Question Both futures and options are traded on a public exchange.
Your Answer False

Question "Currency Snake"
Correct Answer Plus or minus movement of exchange rate around the parity rate
Your Answer Plus or minus movement of exchange rate around the parity rate
Select The Blank

Question "Flip-Flop', 'Mini-Max', 'Capped' 'Perpetual' are the various types
of ________.
Correct Answer Floating Rate Note (FRN)
Your Answer Floating Rate Note (FRN)

Question With whom can an exporter or importer book the forward
contract?
True/False
Question An Indian exporting goods to New York receives dollars in New
York.
Correct Answer True
Your Answer False

Correct Answer Which are convertible , Which have liquidity confirmed in Euro
market operations
Your Answer Which have liquidity confirmed in Euro market operations ,
Which are convertible

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
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

Question Who can open an EEFC account?
Correct Answer Individuals , firms, companies, resident in India
Your Answer Individuals , firms, companies, resident in India
Select The Blank

Your Answer Euro Dollar

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 Hedges, interest rate swaps, currency swaps. , Caps and
True/False
Question Out of 15 member countries in European Union 12 countries
commiteed themselves for a single currency.
Your Answer True
Select The Blank

________.
Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings
within and outside the country
Your Answer IMF, World Bank and local markets
Match The Following

Investment by form ODI form ODI

partnerships not in core
activity
Investment under Form ODA Form ODA
Automatic route
Proposal under non RBI Form NAR
automatic route
Proposal under Normal Special Committee OAB form
route
True/False
Question JV means Joint venture and WOS means World of Security.
Your Answer True
Select The Blank

Question ________ is drawn by taking mean of the bid and offered rates.
Correct Answer Middle rate
Your Answer Average rate
Match The Following

IBRD World Bank World Bank
Collapse of IMF Early 1970s SDR

administered fixed
exchange rates
No International control Mid 80s 2002
on Exchange rates
Euro as a currency 2002 Mid 80s
note/coin
Select The Blank
Question An option on a future is ________.
Correct Answer Derivative on a derivative
Your Answer Derivative on a derivative
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 FRNs

finance
Correct Answer Issuing various insurance policies covering different risks
connected with exports at nominal premium
Your Answer Acting as agents for exporters and taking the entire risk of
transit, recovery etc

Question As regards the due date of an Option exercise which methods
are in vogue?

Correct Answer Export Inspection Council , Person authorised by Importer.
Your Answer Export Inspection Council , Person authorised by Importer.

countries?
Correct Answer Bring down the external value of US Dollar , Bring some stability
to exchange rates of all the countries
Your Answer Bring down the external value of US Dollar , Bring some stability

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.

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 Sale of Goods act

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 sale contract any time from May 2005 till Mid
Sept.


Question What is the objective of INCOTERMS?
Correct Answer Arrange for transfer of risk from seller to buyer at a convenient
place
Your Answer Arrange for transfer of risk from seller to buyer at a convenient
place

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

Question The various arms of World Bank are:
Correct Answer International Development Agency , Multinational Investment

Guarantee Agency
Your Answer International Development Agency , Multinational Investment
Guarantee Agency , Asian Development Bank

Question Which of these are considered as miscellaneous documents?
Correct Answer Packing list , Weight certificate
Your Answer Packing list , Weight certificate
Select The Blank

Question ECGC provides cover to an Indian contractor for construction
work abroad under ________.

International Finance_5

Indian?

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
Match The Following

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
True/False
Your Answer True
Select The Blank

________.
Page 1
Select The Blank

Correct Answer Gold
Your Answer Gold

Question What is the meaning of right to buy or sell the future contract?

True/False
Question Bid rate is bidders buying rate and offered rate is bidders selling
rate.
Correct Answer True
Your Answer True

Question A Dealer Buys commodity in Bombay and sells it in Delhi due to
price differentials. He is said to be resorting to which practice?
True/False
Question Head office of ICC is in Paris because of its First President Eliance
Clementel.
Correct Answer True
Your Answer True

came from June 92?
Page 2
Select The Blank

Select The Blank

Question ________ is the price at which the market maker is prepared to
borrow the money.
True/False
Question Sandby credis are introduced by US Banks because they were not
permitted to issue on demand guarantees.
Correct Answer True
Your Answer True

Your Answer Issuing various insurance policies covering different risks


Question What were the primary objectives of the group of seven countries?
Correct Answer Bring down the external value of US Dollar , Bring some
Select The Blank

Question ________ is the agency of ICC which deals with the maritime
Page 3
crime.

Japanese Market

Amritsar,
Your Answer Foreign Banks at Bombay, Calcutta, Delhi, Madras, Amritsar,

Correct Answer Preshipment credit , Post shipment credit , Duty Draw back

Question How many Countries participated in the third survey on Foreign
Exchange, coordinated by BIS in 1992?
Correct Answer 26
Your Answer 25
Select The Blank


Question What was the official foreign currency reserve of the group of
seven central Banks taken togeather in mid 1992?

Page 4
Question What is the volume of the world's total speculative transactions?

Question Which Indian Co. is not eligible to make investment abroad under
automatic route?
Your Answer Co. which may not have proposed activity as core activity

importer

Question As regards the due date of an Option exercise which methods are
in vogue?

Question Which is the most actively traded currency in the international
market today?

Question Mr A sells an option conferring the right to buy a kilogram of
silver at Rs 8000/- for next six months means :-
Correct Answer The buyer of option can buy silver from Mr A at 8000/- per
Kg, in next 6 months, even if the price goes up, , The buyer of option can sell
silver to Mr A at 8000/- per Kg, in next 6 months, even if the price goes down.
Your Answer The buyer of option can buy silver from Mr A at 8000/- per
Kg, in next 6 months, even if the price goes up, , The buyer of option can sell
silver to Mr A at 8000/- per Kg, in next 6 months, even if the price goes down.
Page 5
True/False
Question Funding Options in domestic yen market are Futures, FRAs, Call
and put options.
Correct Answer True
Your Answer True

Match The Following

16 principles for good environmental conduct Business Charter of sustainable

development Business Charter of sustainable development

of Chambers
Select The Blank

Question Hotels and Airline companies are allowed to receive payments in
Indian rupees from foreign tourist without insisiting on ________.

Question Fixed, Floating or Limited flexibility are used in the context of

Correct Answer Which are convertible , Which have liquidity confirmed in
Euro market operations
Your Answer Which are convertible , Which have greater intrinsic value
Page 6
Select The Blank

Question Forward Margin makes a currency costlier then the currency is at
________.
Your Answer Loss
Select The Blank

Question The rate of interest on rupee finance for exports is not exceeding
________ less than PLR.
Select The Blank

Question The creditworthiness of futures exchange is maintained through
imposition of ________.
Your Answer Penalty
True/False
Question The volume of trading of Derivatives in the world trade market is
growing but still only 5% of the total.
Your Answer True
True/False
Question With the advent of futures and Options there is no need for
additional instruments of risk hedging.
Your Answer True
True/False
Question Charter party bills of lading are generally not acceptable to
bankers as security because Sea Charters are full of problems.
Correct Answer True
Your Answer True

Question In which cases can a Resident Individual in India acquire foreign
securities without prior approval?
Correct Answer Gift from a person outside India, or Inheritance from a
person resident in or outside India , Security issued under Cashless employees
Page 7
stock option scheme
Select The Blank

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
Page 8
Ât cellSpacing=0 cellPadding=0 width="100%" border=0>
Â Select The Blank
Â Â QuestionÂ ÂThe stock of foreign reserves in
India, is now around ________ % of
the GDP and exceeds money
circulation.
Â Â Correct AnswerÂ
15 Â
Â Â Your AnswerÂ
20 Â
Â
Â Multiple Choice Multiple Answer
Â Â QuestionÂ ÂThe World Bank Group Consists of
International
Â Development
Association , International finance
Corporation , Multinational
Investment Guarantee Agency
Â Â Your AnswerÂ
International
Â finance Corporation ,
Multinational Insurance Guarantee
Agency , International Development
Association
Â
Â Multiple Choice Single Answer
Â Â QuestionÂ ÂWhat do you call a 'decreasing
principal swap'?
Amortizing
Â swap
Â Â Your AnswerÂ
Amortizing
Â swap
Â
Â Â QuestionÂ ÂWho can open an EEFC account?
Individuals
Â , firms, companies,
resident in India
Â Â Your AnswerÂ
Individuals
resident in India
Â
Â Select The Blank
Â Â QuestionÂ ÂEUROCLEAR, CEDEL are the
names of ________ related with the
issue of GDR.
Registrars
Â
Â Â Your AnswerÂ
Registrars
Â
Â
Â True/False
Â Â QuestionÂ ÂAn Indian importing goods from USA
pays dollars in India.
False Â
Â Â Your AnswerÂ
True
Â
Â
Â Â QuestionÂ ÂHow does a company use swap to
restructure debt, in its balance
sheet?
By resorting
Â to floating rate from
fixed rate , By resorting to fixed rate
from floating rate
Â Â Your AnswerÂ
By resorting
from floating rate
Â
Â Â QuestionÂ ÂHow many Countries participated in
the third survey on Foreign
Exchange, coordinated by BIS in
1992?
26 Â
Â Â Your AnswerÂ
26 Â
Â
Â True/False
Â Â QuestionÂ ÂIn red clause credit some clauses
are printed in Red ink.
True Â
Â Â Your AnswerÂ
False
Â
Â
Â Select The Blank
Â Â QuestionÂ ÂThe rate of interest on rupee finance
for exports is not exceeding
0.025 Â
Â Â Your AnswerÂ
50 basis
Â points over LIBOR
Â
Â Â QuestionÂ ÂFor issuing a Documentary credit
The applicant is required to provide
to the issuing bank details about
The purchase-sales
Â contract, the
mode of payment, the tenor of
payment , The documents required,
the names of authorities who would
issue the documents
Â Â Your AnswerÂ
TheÂpurchase-sales contract, the
payment , The track record of the
buyer and seller
Â
Â Â QuestionÂ ÂExchange Rate means
Value Â
of one currency in terms of
another
Â Â Your AnswerÂ
Value
Â of one currency in terms of
another
Â
Â Â QuestionÂ ÂWhat do you understand by 'bill of
lading in a quasi negotiable
instrument'?
It is a document
Â of title to goods and
its negotiation may not be complete
and free from qualification.
Â Â Your AnswerÂ
It isÂa document of title to goods and
Â
Â Â QuestionÂ ÂWhere does the word derivative
originate from?
Mathematics
Â
Â Â Your AnswerÂ
Mathematics
Â
Â
Â Â QuestionÂ ÂWhat options does the merchant
have while booking a forward
contract?
Delivery
Â on a Fixed date, within six
months , Delivery on a date between
two days separated by a period of
maximum one month
Â Â Your AnswerÂ
Delivery
maximum one month , A day within
next 1 year
Â
Â Select The Blank
Â Â QuestionÂ ÂEEFC account holder is allowed to
have ________ facility.
Cheque
Â book and nomination
Â Â Your AnswerÂ
Cheque
Â
Â True/False
Â Â QuestionÂ ÂA small percentage of futures
contracts actually result in delivery of
the underlying commodity or
security.
True Â
Â Â Your AnswerÂ
TrueÂ
Â
Â True/False
Â Â QuestionÂ ÂLong in futures means a
commitment to sell futures at a
future date.
False Â
Â Â Your AnswerÂ
True
Â
Â
Â Â QuestionÂ ÂWhat are the categories of
exposures, a person faces in
International trade?
Transaction
Â exposure , Translation
exposure
Â Â Your AnswerÂ
Transaction
exposure
Â
Â True/False
Â Â QuestionÂ ÂNaked position is when investor

does not hedge against market risk.
True Â
Â Â Your AnswerÂ
True
Â
Â
Â Â QuestionÂ ÂThe participants in the Forex
Markets are :-
Non banking
Â entities wishing to
exchange currencies, , Banks and
their clients , Speculators,
arbitragers
Â Â Your AnswerÂ
NonÂbanking entities wishing to
arbitragers
Â Select The Blank
Â Â QuestionÂ Â________ is the acid test for events

to be included in country risk.
Control
Â by Government'
Â Â Your AnswerÂ
Predictability
Â
Â
Â Â QuestionÂ ÂCriteria for Direct investment abroad
under normal route :-
Viability
Â of the proposal, and
excellent track record of business ,
Experience and expertise of
promoters, benefit to the country
Â Â Your AnswerÂ
Viability
Â Match The Following
Question Correct Your Answer

Answer
16 principles Business Business Charter of
for good Charter of sustainable
environmental sustainable development
conduct development
World World World Federation of
Chambers Federation of Chambers
Congress Chambers
ICC Marrakesh Marrakesh
Conference in
2004
13 types of INCOTERM INCOTERM
trade contracts
Â
Â True/False
Â Â QuestionÂ ÂPP Form is required when exports
are made to any country by post
parcel on value payable basis.
False Â
Â Â Your AnswerÂ
True
Â
Â
Â Â QuestionÂ ÂThe investor is in the money when :-
The exercise
Â price is below the spot
price for a call option , The exercise
price is above the spot price for a
put option
Â Â Your AnswerÂ
TheÂexercise price is above the spot
price for a put option , The exercise
price is below the spot price for a put
option
Â
Â Â QuestionÂ ÂUnder which category of exchange
rate did the Indian Rupee came from
June 92?
Other Â
managed Floating
Â Â Your AnswerÂ
Independently
Â floating
Â
Â Â QuestionÂ ÂFinancial management is complex
process for
Companies
Â which have international
trade
Â Â Your AnswerÂ
Cooperative
Â societies abroad
Â
Â Select The Blank
Â Â QuestionÂ ÂThe Trans European Automated
Real Time Gross Settlement
Express Transfer is popular in
________.
Brussels
Â
Â Â Your AnswerÂ
Frankfurt
Â
Â
Â Â QuestionÂ ÂWhat is the duty of the AD while
booking a forward contract?
Verify Â
the suitable documentary
evidence, and that the customer is
exposed to risk , Ensure that a
genuine transaction exists
Â Â Your AnswerÂ
Verify
Â the suitable documentary
genuine transaction exists , Protect
the customer fully from exchange
risk
Â
Â Select The Blank
Â Â QuestionÂ ÂEven after liberalisation of exchange
controls, the Euro sterling market
remained volatile because of
uncertainties in UK and gyrations of
sterling against major ________
countries
OECDÂ
Â Â Your AnswerÂ
OECD
Â
Â
Â Â QuestionÂ ÂWith whom can an exporter or
importer book the forward contract?
Authorised
Â dealer/Authorised person
Â Â Your AnswerÂ
AnyÂbank in India
Â
Â Select The Blank
Â Â QuestionÂ ÂTo make the export more

competitive and remunerative, the
Indian Govt extends ________
facility.
Cash Incentives
Â
Â Â Your AnswerÂ
LineÂof credit
Â Â QuestionÂ ÂPunjab National Bank Mumbai

Branch quoted USD 1= Rs
50.5000/52.5050. Which is the bid
rate for USD?
USD 1=Rs
Â 50.5000
Â Â Your AnswerÂ
USD
Â 1=Rs 50.5000 + margin
Â
Â True/False
Â Â QuestionÂ ÂThe Euro Commercial paper is
supported by a team-syndicated
credit with both sides of the
transaction combined into one
operation.
True Â
Â Â Your AnswerÂ
True
Â
Â
Â Â QuestionÂ ÂAs regards the due date of an

Option exercise which methods are
in vogue?
American
Â option , European Option
Â Â Your AnswerÂ
American
Â
Â Select The Blank
Â Â QuestionÂ ÂIn mid 1992 ________ rejected the
ratification of Maastricht treaty
Denmark
Â
Â Â Your AnswerÂ
UK Â
Â
Â Â QuestionÂ ÂHow does ECGC protect exporters

against risks for export finance
IssuingÂ various insurance policies
covering different risks connected
with exports at nominal premium
Â Â Your AnswerÂ
Issuing
Â various guarantees covering
different risks connected with
exports at nominal premium,
Â
Answer
Swap price Difference in Difference in prices of
prices of two two legs of buying and
legs of selling
buying and
selling
Euro Market Market in Market in Euro
Euro currencies
currencies
Making market Quoting rate Quoting rate for both
for both buying and selling a
buying and currency
selling a
currency
Spread Price Price difference
difference between bid and offer
between bid
and offer
Â
Â True/False
Â Â QuestionÂ ÂCountry risk analysis is a futile
exercise in the background of cost of
analysis.
True Â
Â Â Your AnswerÂ
False
Â
Â
Â Â QuestionÂ ÂWhat is the volume of the world's
average daily transactions in foreign
exchange?
USD 1Âtrillion
Â Â Your AnswerÂ
USD Â 1 trillion
Â
Â Â QuestionÂ ÂIn DAF, the frontier means :-
Frontier
Â of exporter's country ,
Frontier of importer's country
Â Â Your AnswerÂ
Frontier
Â
Â True/False
Â Â QuestionÂ ÂIn an interest rate swap if the
payment schedules are identical,
only diffrence between the two
payments is delivered.
True Â
Â Â Your AnswerÂ
True
Â
Â
Â Select The Blank
Â Â QuestionÂ ÂThe option which can be exercised
on the maturity date and not before it
is known as________.
European
Â Option
Â Â Your AnswerÂ
European
Â Option
Â
Â True/False
Â Â QuestionÂ ÂSandby credis are introduced by US

Banks because they were not
permitted to issue on demand
guarantees.
True Â
Â Â Your AnswerÂ
True
Â
Â
Â Â QuestionÂ ÂAt the request of M/s Universal
Traders Calcutta, State Bank of
India opened a documentary credit
in Favour of M/s Star Trading Co
Dubai, for USD 25000/-.Here State
Bank of India Calcutta is known as
IssuingÂ Bank , Opening Bank
Â Â Your AnswerÂ
Issuing
Â Bank , Confirming Bank
Â
Â Select The Blank
Â Â QuestionÂ ÂUnder the ________ standard the
Country's Central Bank promised to
buy back the currency at certain rate
of Gold.
Gold Â
Â Â Your Gold
AnswerÂ Â Â
Âoice Multiple Answer
International
Â Development
Â Â Your AnswerÂ
International
Â Development
Â
Â Â QuestionÂ ÂEquity can be raised internationallly
by a company through :-
Fund raising,
Â underwriting, hedging ,
arbitration operations
Â Â Your AnswerÂ
Floating
Â debt instruments

legs of selling
buying and
selling
Euro currencies
currencies
buying and currency
selling a
currency
between bid
and offer
Â
Â True/False
True Â
Â Â Your AnswerÂ
True
Â
Â
Â Select The Blank
Â Â QuestionÂ ÂThe large flow of money
internationally was caused primarily
by the oil price hikes engineered by
________.
OPECÂcountries
Â Â Your AnswerÂ
European
Â Countries
Â
Â Select The Blank
Â Â QuestionÂ Â________ enables bankers to
extend purchase, negotiation or
discount of export bills.
Post shipment
Â credit guarantee
Â Â Your AnswerÂ
Export
Â finance guarantee
Â
Â Â QuestionÂ ÂWhich non financial service does
EXIM Bank give to an exporter?
Provide
Â Technical and administrtive
support , Planning, promoting and
developing export oriented
Industries
Â Â Your AnswerÂ
Provide
Industries
Â
Â Â QuestionÂ ÂWhich debits are permitted to EEFC
accounts?
Payment
Â of hotel bills abroad,
payment for expenses on Heart
operation abroad , Payment to
EOUs in India for services rendered
by them
Â Â Your AnswerÂ
Payment
by them
Â
Â True/False
Â Â QuestionÂ ÂTerms in an Irrevocable credit can
not be alterred at all.
False Â
Â Â Your AnswerÂ
TrueÂ
Â
Â Â QuestionÂ ÂHow many INCOTERMS are there in
"Departure" Group?
One Â
Â Â Your AnswerÂ
OneÂ
Â
Â Â QuestionÂ ÂHow does ICC access Govt and
influence Governmental decisions?
ThroughÂ national committees
Â Â Your AnswerÂ
Through
Â national committees
Â
Â Â QuestionÂ ÂA Usance bill of exchange may be
drawn in 2 ways. Which are they?
Documents
Â against payment ,
Documents against acceptance
Â Â Your AnswerÂ
Documents
Â
Â Â QuestionÂ ÂName the single most important
factor which may devastate the
economic viability of an operation in
international trade :-
Unfavourable
Â fluctuation in the
exchange rate
Â Â Your AnswerÂ
Unfavourable
exchange rate
Â
Â True/False
operation.
True Â
Â Â Your AnswerÂ
TrueÂ
Â
Â Select The Blank
Â Â QuestionÂ ÂWhen interest rate changes by 0.05
per cent then it has changed
________ basis points.
50 Â
Â Â Your AnswerÂ
50 Â
Â
Â Select The Blank
Â Â QuestionÂ ÂIndia is a founder member of
________.
IMF Â
Â Â Your AnswerÂ
BANKNET
Â
Â
Â Â QuestionÂ ÂHow many types of documents are
required in the International trade?
Six Â
Â Â Your AnswerÂ
Six Â
Â
Â Â QuestionÂ ÂExport finance
Preshipment
Â credit , Post shipment
credit , Duty Draw back
Â Â Your AnswerÂ
Preshipment
credit , Buyers credit
Â
Â Select The Blank
Â Â QuestionÂ ÂWhen a credit is made to available
to additional beneficiary wholly or
partly it is called as ________.
Transferable
Â credit
Â Â Your AnswerÂ
Transferable
Â credit
Â
Â True/False
security.
True Â
Â Â Your AnswerÂ
True Â
Â
Â Select The Blank
Â Â QuestionÂ ÂAn exchange rate for $ was48.2050,
it is now 48.2075, then one says that
it has moved ________ basis points
25 Â
Â Â Your AnswerÂ
0.0025
Â
Â
Â True/False
Â Â QuestionÂ ÂTransfer of funds for investment
abroad is allowed freely.
True Â
Â Â Your AnswerÂ
True
Â
Â
Â Select The Blank
0.025 Â
Â Â Your AnswerÂ
0.025
Â
Â
Â Â QuestionÂ ÂWhat do you understand by 'Foreign
Exchange Risk'?
The change
Â 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
Â Â Your AnswerÂ
Certainty
Â of an event which would
happen in favour of the importer/
exporter , Inability to control various
factors contributing to International
trade
Â

process for
Companies
trade
Â Â Your AnswerÂ
Companies
trade
Â
Â True/False
Â Â QuestionÂ ÂImport finance is nomally available
at rates of interest cheaper than
domestic finance rates.
False Â
Â Â Your AnswerÂ
False
Â
Â Select The Blank

circulation.
15 Â
Â Â Your AnswerÂ
12.5Â

Â Â QuestionÂ ÂWhich type of Convertibility of
Rupee launched in March 1992 ?
Limited
Â convertibility
Â Â Your AnswerÂ
Convertibility
Â on current account
Â

sheet?
By resorting
from floating rate
Â Â Your AnswerÂ
By resorting
Â to fixed rate from
floating rate , Prepayment of existing
debts , Raising new loans
Â

50.5000/52.5050. Which is the
offered rate for Rs?
USD 1=Rs
Â 50.5000
Â Â Your AnswerÂ
USD Â 1=Rs 50.5000 + margin
Â
Â Â QuestionÂ ÂWhat facilities are proposed by

Sodhani Committee for NRIs?
Housing
Â Loan to NRI staff of Indian
Companies, , NRIs be permitted to
invest in MMMF
Â Â Your AnswerÂ
Housing
invest in MMMF , Permission to sale
shares under Port folio investment
be denied
Â
Â Â QuestionÂ ÂWhich document is used for
transportation by air, rail, road,
marine?
Multimodal
Â transport document ,
Combined Transport document
Â Â Your AnswerÂ
Multimodal
Â
Â Â QuestionÂ ÂUnder which contracts the seller
pays the import duty for the buyer?
DDP Â
Â Â Your AnswerÂ
DDU Â
Â
Â True/False
Â Â QuestionÂ ÂDealing room is a place where the
actual exchange of currencies takes
place phsically at predetermined
rates.
False Â
Â Â Your AnswerÂ
True
Â
Â
Â Â QuestionÂ ÂWhat was the reason for launching
swap as an risk hedging instrument?
To avoid
Â the effects of currency
control imposed in UK
Â Â Your AnswerÂ
To avoid
Â
Â Select The Blank
Â Â QuestionÂ ÂThe creditworthiness of futures
exchange is maintained through
MarginÂ
Â Â Your AnswerÂ
Margin
Â
Â
Â True/False
Â Â QuestionÂ ÂIn forward sales, the delivery refers
to actual cash flows on due date.
True Â
Â Â Your AnswerÂ
TrueÂ
Â
Â Â QuestionÂ ÂIn a documentary credit the word
document means :-
Specified
Â documents of title,
transportation, insurance , Specified
certificates, and other papers
required as per the regulations in the
buyers country
Â Â Your AnswerÂ
Specified
buyers country , Credit is
documented as an evidence
Â
Â True/False
Â Â QuestionÂ ÂThe amount in EEFC account can
be deposited in FCNR account to
get interest.
False Â
Â Â Your AnswerÂ
True
Â
Â
Â True/False
Â Â QuestionÂ ÂADR Level I, is the final step to enter
US erquity market.
False Â
Â Â Your AnswerÂ
False
Â
Â
Â Â QuestionÂ ÂAs per BIS, recovery from the recent
crisis in global capital market was
mainly due to
Rapid Âand appropriate policy
response in US and other countries ,
Increase in Foreign Direct
Investments , free flow of credit
Â Â Your AnswerÂ
Rapid
Â and appropriate policy
Investments , free flow of credit ,
Devaluation of currencies
Â
Â Â QuestionÂ ÂWhat is the effect of cross currency
option on the customer?
He gets
Â the flexibility to exposure ,
He is exposed to additional risk of
movement of rates between 3
currencies
Â Â Your AnswerÂ
He Âgets the flexibility to exposure ,
His profit increases
Â
Â Â QuestionÂ ÂIn case the value date happens to
be a holiday then the settlement is
done :-
On theÂnext working day
Â Â Your AnswerÂ
On Â
the next working day
Â
Â Select The Blank
Â Â QuestionÂ ÂAfter the second world war many
countries adopted the route of
________ to give facelift to sagging
economies.
Devaluation
Â of their currencies
Â Â Your AnswerÂ
Devaluation
Â
Â Select The Blank
Â Â QuestionÂ Â________Bill of lading must specify
the name of the ship.
"On Board"
Â
Â Â Your AnswerÂ
"OnÂBoard"
Â
Â Â QuestionÂ ÂWhose permission was necessary
for forming the Association of
Reserve
Â Bank of India
Â Â Your AnswerÂ
Reserve
Â Bank of India
Â
Answer
European On or after On or after maturity
option maturity
Out of money Loss Loss
In the money Profit Profit
American Before Before maturity
option maturity Â
Â Â QuestionÂ
The ÂWorld Bank Group Consists
of
Â Â CorrectInternational
AnswerÂ Â Development
Â Â Your AnswerÂ
International
Â Development
Â
Â Â QuestionÂ
Equity
Â can be raised
internationallly by a company
through :-
Â Â CorrectFund
AnswerÂ
raising,
Â underwriting,
hedging , arbitration operations
Â Â Your AnswerÂ
FloatingÂdebt instruments
Â
Â Â QuestionÂ
Financial
Â management is complex
process for
Â Â CorrectCompanies
AnswerÂ Âwhich have
international trade
Â Â Your AnswerÂ
CompaniesÂ which have
international trade
Â
Â True/False
Â Â QuestionÂ
Import
Â finance is nomally
available at rates of interest
cheaper than domestic finance
rates.
Â Â CorrectFalse
AnswerÂ Â
Â Â Your AnswerÂ
False Â
Â
Â Select The Blank
Â Â QuestionÂ
The Âstock of foreign reserves in
India, is now around ________ %
of the GDP and exceeds money
circulation.
Â Â Correct15
AnswerÂ Â
Â Â Your AnswerÂ
12.5 Â
Â
Â Â QuestionÂ
Which
Â type of Convertibility of
Â Â CorrectLimited
AnswerÂconvertibility
Â
Â Â Your AnswerÂ
Convertibility
Â
Â Â QuestionÂ
HowÂdoes a company use swap to
sheet?
Â Â CorrectByAnswerÂ
resorting
fixed rate , By resorting to fixed
rate from floating rate
Â Â Your AnswerÂ
By resorting
floating rate , Prepayment of
existing debts , Raising new loans
Â
Â Â QuestionÂ
Punjab
Â National Bank Mumbai
50.5000/52.5050. Which is the
Â Â CorrectUSD
AnswerÂ
1=RsÂ50.5000
Â Â Your AnswerÂ
USD 1=Rs
Â 50.5000 + margin
Â
Â Â QuestionÂ
What
Â facilities are proposed by
Â Â CorrectHousing
AnswerÂLoan
Â to NRI staff of
Indian Companies, , NRIs be
permitted to invest in MMMF
Â Â Your AnswerÂ
HousingÂLoan to NRI staff of
permitted to invest in MMMF ,
Permission to sale shares under
Port folio investment be denied
Â
Â Â QuestionÂ
Which
Â document is used for
marine?
Â Â CorrectMultimodal
AnswerÂ Âtransport document ,
Â Â Your AnswerÂ
Multimodal
Â
Â Â QuestionÂ
Under
Â which contracts the seller
pays the import duty for the
buyer?
Â Â CorrectDDP
AnswerÂ Â
Â Â Your AnswerÂ
DDU Â
Â
Â True/False
Â Â QuestionÂ
Dealing
Â room is a place where the
actual exchange of currencies
takes place phsically at
predetermined rates.
Â Â CorrectFalse
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
WhatÂ was the reason for
launching swap as an risk
hedging instrument?
Â Â CorrectTo
AnswerÂ
avoid the
Â effects of currency
Â Â Your AnswerÂ
To avoidÂthe effects of currency
Â
Â Select The Blank
Â Â QuestionÂ
The Âcreditworthiness of futures
Â Â CorrectMargin
AnswerÂ Â
Â Â Your AnswerÂ
Margin Â
Â
Â True/False
Â Â QuestionÂ
In forward
Â sales, the delivery
refers to actual cash flows on due
date.
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
In a Â
documentary credit the word
document means :-
Â Â CorrectSpecified
AnswerÂdocuments
Â of title,
transportation, insurance ,
Specified certificates, and other
papers required as per the
regulations in the buyers country
Â Â Your Specified documents of title,
AnswerÂ transportation, insurance , Â
ÂChoice Single Answer
Â Â QuestionÂ
In which
Â of the funding facilities the
repayment period is between 3 to 5 years ?
Â Â CorrectC.C.F.F.
AnswerÂ Â
Â Â Your AnswerÂ
Stand By
Â Arrangement
Â
Â Â QuestionÂ
Samuraibonds
Â are
Â Â CorrectForeign
AnswerÂ yen
Â bonds issued to non resident
entities in Japanese Market
Â Â Your AnswerÂ
Foreign Â yen bonds issued to non resident
Â
Question Correct Answer Your
Answer
Returning RFC FCNR,

NRI NRE
NRI FCNR, NRE INVESTM

Deposits ENT IN
MMMF
NRIS AND INVESTMENT IN MMMF RFC
EXPORT EEFC Investmen
ERS t in GDR,
ADR
Â

Â Â QuestionÂ
In which
AnswerÂ Â
Â Â Your AnswerÂ
Stand ByÂ Arrangement
Â
Â Â QuestionÂ
Samuraibonds
Â are
AnswerÂ yen
Â Â Your AnswerÂ
Â
Â Â QuestionÂ
In the
Â context of International economy ,the
period between 1920s and 1930s is known as
Â Â CorrectGreat
AnswerÂ
Depression
Â
Â Â Your AnswerÂ
Great Depression
Â
Â
Â Â QuestionÂ
Sterling
Â Market is attractive for an
international investor because
Â Â CorrectGilts
AnswerÂ
offer higher
Â attractive margin , Choice of
issuing medium term and long term bonds
Â Â Your AnswerÂ
Gilts offer
Â higher attractive margin , Choice of
issuing medium term and long term bonds ,
Linking of issues to currency swaps
Â
Â Select The Blank
Â Â QuestionÂ
WhenÂ interest rate changes by 0.05 per cent
then it has changed ________ basis points.
Â Â Correct50
AnswerÂ Â
Â Â Your AnswerÂ
500 Â
Â
Â Â QuestionÂ
Internationally
Â only those currencies are in
demand
Â Â CorrectWhich
AnswerÂare Â
convertible , Which have liquidity
Â Â Your AnswerÂ
Which areÂ convertible , Which have liquidity
confirmed in Euro market operations , Which
have greater intrinsic value
Â
Â Select The Blank
Â Â QuestionÂ
AfterÂthe second world war many countries
adopted the route of ________ to give facelift
to sagging economies.
Â Â CorrectDevaluation
AnswerÂ Â of their currencies
Â Â Your AnswerÂ
Devaluation
Â
Â Â QuestionÂ
HowÂdoes RBI control Exports?
Â Â CorrectThrough
AnswerÂRule
Â like "Full value of Export bills
must be realised in 180 days," , Through Rule
like " Export must be denominated In a
currency of the Importing country or a freely
convertible currency"
Â Â Your AnswerÂ
ThroughÂRule like "Full value of Export bills
convertible currency" , By Issuing a Export
Code Number, and monitoring his exports
through returns and statements filed by him
Â
Â Select The Blank
Â Â QuestionÂ
OverÂthe years ________has been the most
widely accepted currency in international
capital market.
Â Â CorrectAmerican
AnswerÂ Dollar
Â
Â Â Your AnswerÂ
American
Â Dollar
Â
Â Select The Blank
Â Â QuestionÂ
Any Â
company involved in foreign exchange
transactions is exposed to ________ risk.
Â Â CorrectCurrency
AnswerÂ Â
Â Â Your AnswerÂ
PaymentÂ
Â
Â True/False
Â Â QuestionÂ
An ADÂ can book a forward contract for a part
of the amount of Sale Contract
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
WhyÂdoes a person need protection from
unfavourable movement of exchange rate?
Â Â CorrectUnfavourable
AnswerÂ Â fluctuations in exchange rate
can wipe out the normal business profit
Â Â Your AnswerÂ
He wants
Â to make profit
Â
Answer
Merchant Portfolio management Portfolio

banking managem
ent
Securitizat Issue of debt in the form of Issue of
Prime Highest credit rating Highest
Traditional Loans and cash credit against Loans and
banking security cash
service credit
against
security
Â

Â Â QuestionÂ
A Specific
Â date forward contract can be
booked so as to be :-
Â Â CorrectPayable
AnswerÂ onÂa specific date of the calendar
month
Â Â Your AnswerÂ
PayableÂon a specific date of the calendar
month
Â

Â Â QuestionÂ
What
Â are the sources of raising funds for
exports?
Â Â CorrectSuppliers
AnswerÂcredit
Â , Forfaiting
Â Â Your AnswerÂ
Suppliers
Â credit , Forfaiting , Buyers credit
Â
Â Select The Blank

Â Â QuestionÂ
The Âcounter party in option is ________.
Â Â CorrectThe
AnswerÂ
exchange
Â
Â Â Your AnswerÂ
Trustworthy
Â corporation, who hedges the
risks of market uncertainty
Â
Â True/False
Â Â QuestionÂ
Transfer
Â of funds for investment abroad is
allowed freely.
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â

Â Â QuestionÂ
WhatÂ do you understand by a swap?
Â Â Correct2AnswerÂ
counter parties
Â agree to exchange streams
of payments over a period of time
Â Â Your AnswerÂ
2 counter
Â parties agree to exchange streams
Â
Â True/False
Â Â QuestionÂ
The ÂOption period in the forward contract is at
the option of the Banker, hence the bank has
to be very conservative in quoting rates.
Â Â CorrectFalse
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
WhatÂ are the powers of money changers?
Â Â CorrectPurchase
AnswerÂ andÂ sell foreign currency notes and
travellers cheques
Â Â Your AnswerÂ
Purchase Â and sell foreign currency notes and
travellers cheques
Â
Â Select The Blank
Â Â QuestionÂ
________
Â is drawn by taking mean of the bid
and offered rates.
Â Â CorrectMiddle
AnswerÂrateÂ
Â Â Your AnswerÂ
Basic rate
Â
Â
Â True/False
Â Â QuestionÂ
The Âcredit rating of World Bank is high in the
world Capital market because it operates at
the debt equity ratio of 1:2
Â Â CorrectFalse
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
WhatÂ are the activities of ICC?
Â Â CorrectAribtration
AnswerÂ Â and dispute resolving , Canvass
for open trade combat commercial crime
Â Â Your AnswerÂ
Aribtration
Â and dispute resolving , Canvass
Â
Â Â QuestionÂ
WhoseÂ permission was necessary for forming
the Association of Foreign Exchange Dealers,
in India?
Â Â CorrectReserve
AnswerÂBank
Â of India
Â Â Your AnswerÂ
ReserveÂBank of India
Â
Answer
Returning RFC FCNR,

ERS t in GDR,
ADR
Â True/False
Â Â QuestionÂ
Tranche'
Â is a managed issue of securities in
smaller denominations.
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Select The Blank
Â Â QuestionÂ
A Documentary
Â credit issued on the strength
of another documentary credit is known as
________.
Â Â CorrectBack
AnswerÂ
to Back
Â credit
Â Â Your AnswerÂ
Back to ÂBack credit
Â

Â Â QuestionÂ
WhichÂ is the most actively traded currency in
the international market today?
Â Â CorrectUS
AnswerÂ
Dollar Â
Â Â Your AnswerÂ
US DollarÂ
Â
Â True/False
Â Â QuestionÂ
Till August
Â 1994 India was following the
Indirect Methodof Rate quotation.
Â Â CorrectFalse
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
Which
Â debits are permitted to EEFC
accounts?
Â Â CorrectPayment
AnswerÂofÂhotel bills abroad, payment for
expenses on Heart operation abroad ,
Payment to EOUs in India for services
rendered by them
Â Â Your AnswerÂ
PaymentÂ of hotel bills abroad, payment for
rendered by them , Investment abroad in
stocks and shares by an Individual
Â
Â True/False
Â Â QuestionÂ
Normally
Â the forward contracts are booked
for making huge profits.
Â Â CorrectFalse
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
Which
Â factors influence the valuation of cash
flows?
Â Â CorrectIncomplete
AnswerÂ Âcapital market , Availability of
projkect specific concessional finance,
Â Â Your AnswerÂ
Incomplete Â capital market , Rates of inflation,
, volatility of exchange rates
Â
Â True/False
Â Â QuestionÂ
Indian
Â companies are now allowed to freely
invest abroad up to $1.5 million, raised
through GDE or EEFC without prior
permission from RBI.
Â Â CorrectFalse
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
Name Â the services provided by 'Reuter 3000'
in forex market:-
Â Â CorrectQuotation
AnswerÂ ofÂ forex rates, interest rates ,
Electronic broking by matching the rates
Â Â Your AnswerÂ
Quotation
Â of forex rates, interest rates ,
Electronic broking by matching the rates ,
Calculate and quote rates for transactions
Â
Â Â QuestionÂ
Underwriters
Â are more attracted to NIF issue
because of :-
Â Â CorrectLesser
AnswerÂ
risks
Â , Increased returns , Easy
marketability features
Â Â Your AnswerÂ
Lesser risks
Â , Increased returns , High
underwriting fees
Â
Â Â QuestionÂ
In which
Â cases can a Resident Individual in
India acquire foreign securities without prior
approval?
Â Â CorrectGift
AnswerÂ
from aÂperson outside India, or
Inheritance from a person resident in or
outside India , Security issued under
Â Â Your AnswerÂ
Gift fromÂa person outside India, or
Cashless employees stock option scheme ,
Purchased from NRO/NRNR accounts
Â
Â Select The Blank
Â Â QuestionÂ
A ________
Â Bill of lading does not specify the
terms and conditions of carriage.
Â Â CorrectShort
AnswerÂ
FormÂ
Â Â Your AnswerÂ
Dirty Â
Â
Â Â QuestionÂ
What Â does a speculator accept while dealing
with an option?
Â Â CorrectThe
AnswerÂ
exercise
Â or strike price, the amount , The
expiration date and time, the method of
payment
Â Â Your AnswerÂ
The exercise
payment
Â
Â Â QuestionÂ
For a
Â spot transaction carried out on
Thursday, currencies will be exchanged on :-
Â Â CorrectMonday
AnswerÂ Â
Â Â Your AnswerÂ
Friday Â
Â
Â Â QuestionÂ
Inhow
Â many groups are INCOTERMS
classified?
Â Â CorrectFour
AnswerÂ Â
Â Â Your AnswerÂ
Four Â
Â
Â Select The Blank
Â Â QuestionÂ
In ________
Â transaction the delivery is
postponed from the agreed date.
Â Â CorrectRollover
AnswerÂ Â
Â Â Your AnswerÂ
Future Â
Â
Â True/False
Â Â QuestionÂ
Phytosanitary/
Â Radiation/Fumigation
certificates are in the category of Health
Certificates
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
WhatÂ is the objective of FEDAI?
Â Â CorrectLaying
AnswerÂ
downÂ terms and conditions of
exchange business between Customers and
Bankers , Interbank understanding for
transacting forex business and exchange
rates
Â Â Your AnswerÂ
Laying down
Â terms and conditions of
Bankers , Growth of Indian Exports , Ensure
the profitability of Forex business to the
banks
Â
Â True/False
Â Â QuestionÂ
Out Âof 15 member countries in European
Union 12 countries commiteed themselves
for a single currency.
Â Â CorrectFalse
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Select The Blank
Â Â QuestionÂ
For setting
Â up joint ventures abroad or equity
participation abroad, EXIM bank provides
Â Â CorrectOverseas
AnswerÂ investment
Â facility
Â Â Your AnswerÂ
Equity Participation
Â scheme
Â
Â Â QuestionÂ
HowÂis the entry into any conuntry's money
market or capital market is restricted?
Â Â CorrectBecause
AnswerÂofÂdifferent tax systems , Because
of different credit standards
Â Â Your AnswerÂ
BecauseÂof different tax systems , Because
of different credit standards , Because of
resistance by dealer's associations
Â
Â Select The Blank
Â Â QuestionÂ
A BillÂ of exchange payable 45 days from date
of shipment, is a means of ________ from
seller to the buyer.
Â Â CorrectCredit
AnswerÂ Â
Â Â Your Payment Â
Select The Blank

Â>Select The Blank
Â Â QuestionÂ
Forward
Â margin makes a currency cheaper
then the currency is at ________.
Â Â CorrectDiscount
AnswerÂ Â
Â Â Your AnswerÂ
PAR Â
Â
Â Â QuestionÂ
Which
Â of these are not considered as good
securities by the banker?
Â Â CorrectHouse
AnswerÂAirway
Â bill , Postal Receipt
Â Â Your AnswerÂ
Postal Receipt
Â , House Airway bill
Â
Â Â QuestionÂ
The ÂDirect Investment abroad through share
swap arrangement under normal route is
permitted in a :-
Â Â CorrectJV/WOS
AnswerÂ Â
Â Â Your AnswerÂ
JV/WOSÂ
Â
Â Â QuestionÂ
WhoÂintroduced the worlds first exchange
traded currency futures?
Â Â CorrectChicago
AnswerÂMercantile
Â Exchange
Â Â Your AnswerÂ
ChicagoÂMercantile Exchange
Â
Â Â QuestionÂ
WithÂreference to ECB, fund raising activity
includes :-
Â Â CorrectFloating
AnswerÂ rate
Â notes, bonds, debentures ,
Syndicate loans, issue of shares
Â Â Your AnswerÂ
FloatingÂrate notes, bonds, debentures ,
Â
Â Select The Blank
Â Â QuestionÂ
An option
Â on a future is ________.
Â Â CorrectDerivative
AnswerÂ Â on a derivative
Â Â Your AnswerÂ
Irrelevant
Â
Â
Â Â QuestionÂ
HowÂdoes ICC help poor countries?
Â Â CorrectAttract
AnswerÂForeign
Â Direct investments togeather
with UNCTAD
Â Â Your AnswerÂ
Attract Foreign
with UNCTAD
Â
Â Â QuestionÂ
Which Â functions does the Bill of Lading
serve?
Â Â CorrectItAnswerÂ
is a document
Â of title to goods. , It is receipt
of goods
Â Â Your AnswerÂ
It is a document
of goods
Â

Stage III in Members to meet the Members
LastStage Form a single currency Free
The First Free movement of capital in EC Establish
stage in ment of
the European
European Monetary
d and Institute
Monetary
Union
(EMU)
Stage II in Establishment of European Establish
EMU Monetary Institute EURO
Bank
Â
Â Â QuestionÂ
For a
Tuesday, where both centers have holiday on
Wednesday, currencies will be exchanged on
:-
Â Â CorrectThursday
AnswerÂifÂit is a working day at both the
centers
Â Â Your AnswerÂ
ThursdayÂ if it is a working day at both the
centers
Â
Intolerable Drop the investment project Cost of
risk evluation
does not
justify
analysis
Country Cost of evluation does not justify Continue
risk analysis the project
Stock Banks are ahead Banks are
market ahead
analysis
Weightag Factors' values Factors'
es % values
Â
Â True/False
Â Â QuestionÂ
Bid rate
Â is bidders buying rate and offered
rate is bidders selling rate.
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â True/False
Â Â QuestionÂ
Resident
Â Individuals in India can acquire
foreign bonus shares on the foreign securities
already held by them without prior approval of
RBI
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
WhatÂ do you understand by Commercial
Risk?
Â Â CorrectProtracted
AnswerÂ Âdefault by the buyer , Insolvency of
the buyer
Â Â Your AnswerÂ
ProtractedÂ default by the buyer , Insolvency of
the buyer , Risk of strikes due to which
commercial activity is haulted
Â
Â Â QuestionÂ
A billÂof exchange issued by a bank which
pays specified sum of money to the holder on
a specific date is called :-
Â Â CorrectBankers'
AnswerÂAcceptance
Â Bond
Â Â Your AnswerÂ
Usance ÂBill of Exchange
Â
Â Select The Blank
Â Â QuestionÂ
Association
Â of several scheduled commercial
banks for forex business is ________.
AnswerÂ Exchange
Â Dealers Association of
India
Â Â Your AnswerÂ
Foreign ÂExchange Dealers Association of
India
Â
Â Select The Blank
Â Â QuestionÂ
The Âmajor industrial power whose economy
was not affected after the II world war was
________.
Â Â CorrectUSA
AnswerÂ Â
Â Â Your AnswerÂ
USA Â
Â
Â True/False
Â Â QuestionÂ
Sterling
Â FRNs are issued in Europe, USA
,Asia
Â Â CorrectFalse
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
Mr MÂ has imported some goods from Greece.
What is the maximum period within which he
must make the payment?
Â Â CorrectSix
AnswerÂ
monthsÂfrom date of shipment
Â Â Your AnswerÂ
Six months
Â from date of bill of exchange
Â
Â Â QuestionÂ
Under
Â the automatic route of Direct
Investment Abroad, what is the restriction on
market purchases?
Â Â Correct50%
AnswerÂ
of theÂnet worth of the investing
company
Â Â Your AnswerÂ
50% of the
Â net worth of the investing
company
Â
Â Select The Blank
Â Â QuestionÂ
For importing
Â goods in India RBI insists on
________ value.
Â Â CorrectCIF
AnswerÂ Â
Â Â Your AnswerÂ
FOB Â
Â
Â Â QuestionÂ
What
Â is the objective of INCOTERMS?
Â Â CorrectArrange
AnswerÂ forÂtransfer of risk from seller to
buyer at a convenient place
Â Â Your AnswerÂ
ArrangeÂfor transfer of risk from seller to
Â
Â Â QuestionÂ
NameÂ the members of Exchange Banks
association :-
AnswerÂBanks
Â at Bombay, Calcutta, Delhi,
Madras, Amritsar,
Â Â Your AnswerÂ
Foreign Â
Banks at Bombay, Calcutta, Delhi,
Madras, Amritsar,
Â
Â True/False
Â Â QuestionÂ
Yankee
Â bond is issued for domestic
borrowers.
Â Â CorrectFalse
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â True/False
Â Â QuestionÂ
In the
Â forward rate quotations between two
currencies, when one currency is at discount
the other currency is at premium.
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
False Â
Â
Â Select The Blank
Â Â QuestionÂ
FixedÂ interest rate Eurobond without the
option to convert to equity is known as
________.
Â Â CorrectStraight
AnswerÂ Debt
Â
Â Â Your AnswerÂ
Straight ÂDebt
Â
Â True/False
Â Â QuestionÂ
Cause
Â of increase in cost of public issues
Underwriting fees , selling commission
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
In the
Â syndicated loan arrangement the
borrower has to execute :-
Â Â CorrectSingle
AnswerÂPrincipal
Â loan agreement
Â Â Your AnswerÂ
Single Principal
Â loan agreement
Â
Â Â QuestionÂ
What Â criteria of lending is adopted by The
International Development agency while
giving loans to a country?
Â Â CorrectThe
AnswerÂ
per capita
Â income of the borrwoing
country , The population of the borrwoing
country
Â Â Your AnswerÂ
The per Âcapita income of the borrwoing
country , The repayment capacity. , The
Security offerred.
Â
Â Select The Blank
Â Â QuestionÂ
As aÂresult of the world wars in the 20th
century the ________ of most of the
countries suffered heavily.
Â Â CorrectEconomies
AnswerÂ Â
Â Â Your AnswerÂ
Currencies
Â
Â
Â Select The Blank
Â Â QuestionÂ
Rupee
Â was liberalised on ________ account
in 1993, and on current account in 1994.
Â Â CorrectTrade
AnswerÂ Â
Â Â Your AnswerÂ
Capital Â
Â
Â True/False
Â Â QuestionÂ
Integrated
Â branches of Commercial banks
handle forex transactions as well as options,
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â True/False
Â Â QuestionÂ
Floating
Â rate notes are traded in secondary
market also.
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
What Â maxim is followed by the forex dealer
when indirect method of exchange rate
quotation is used?
Â Â CorrectBuy
AnswerÂ
Low, sell
Â High
Â Â Your AnswerÂ
Buy High,Â Sell Low
Â
Â Select The Blank
Â Â QuestionÂ
In ________
Â Contract seller is like a domestic
seller in destination country
Â Â CorrectDDP
AnswerÂ Â
Â Â Your AnswerÂ
DDP Â
Â
Â Select The Blank
Â Â QuestionÂ
________Bill
Â of lading must specify the name
of the ship.
Â Â Correct"On
AnswerÂ
Board"Â
Â Â Your AnswerÂ
"On Board"
Â
Â
Â Select The Blank
Â Â QuestionÂ
Indian
Â Co. intending to make investment
under Automatic route needs to submit form
________ to RBI with enclosures.
Â Â CorrectODA
AnswerÂ Â
Â Â Your AnswerÂ
ODA Â
Â
Â Â QuestionÂ
What Â is a 'speculator'?
Â Â CorrectTrader
AnswerÂ whoÂis neither hedger nor arbitragor ,
He takes risks for profit
Â Â Your AnswerÂ
Trader who
Â is neither hedger nor arbitragor ,
He takes risks for profit , He buys or sells to
hedge his risk
Â
Â Â QuestionÂ
The Âcharacteristics of IDA Loan are:
gives loans
Â to poorer countries , The rate of
interest is zero percent , The repayment
period is very long 40 years
Â Â Your AnswerÂ
It gives loans
Â
Â True/False
Â Â QuestionÂ
Head Â office of ICC is in Paris because of its
First President Eliance Clementel.
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
What Â does the word '"Tombstone" stand for?
Â Â CorrectAdvertisement
AnswerÂ Â which lists the managers,
underwriters, , List of Providers of recently
floated issue
Â Â Your AnswerÂ
Advertisement
Â which lists the managers,
floated issue , Issue without planning, for
short duration
Â
Â Â QuestionÂ
What Â is Risk Syndication facility?
Â Â CorrectSharing
AnswerÂ of Â
risk of non payment by supplier
Â Â Your AnswerÂ
Sharing Âof risk of non payment by supplier
Â
Â Â QuestionÂ
What Â do you understand by 'Foreign
Exchange Risk'?
Â Â CorrectThe
AnswerÂ
change Â 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
Â Â Your AnswerÂ
The change
Â in value of currency alters the
cash flows
Â
Â Â QuestionÂ
The Âmaximum period for which a forward
contract can be granted by the AD depends
upon which RBI directives?
Â Â CorrectMaximum
AnswerÂ Period
Â of repatriation of export
proceeds , Maximum Period of payment for
Imports
Â Â Your AnswerÂ
Maximum Â Period of repatriation of export
Imports
Â
Â Â QuestionÂ
A Forward
Â purchase contract was booked
with an authorised dealer and subsequently
cancelled .It :-
Â Â CorrectCan
AnswerÂ
be booked
Â again with another dealer ,
Can be booked again with the same dealer
Â Â Your AnswerÂ
Can be booked
Can be booked again with the same dealer ,
Can be booked only for un booked portion of
the contract.
Â
Â True/False
Â Â QuestionÂ
BothÂfutures and options are traded on a
public exchange.
Â Â CorrectFalse
AnswerÂ Â
Â Â Your AnswerÂ
False Â
Â
Â Â QuestionÂ
The Âcharacteristics of an International
documentary credit are :-
is an undertaking
Â given by the openers
bank to pay certain sum of money , It is an
undertaking given on behalf of a certain
Â Â Your It is an undertaking given by the openers
AnswerÂ bank to pay certain sum of money , It is an
Â undertaking given on behalf of a certain
person to another person in different country ,
It is an unconditional undertaking Â

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
Select The Blank

Your Answer Visaed
True/False
Question The working of the IBRD and IMF in recent has blurred the
difference between the two
Correct Answer True
Your Answer False

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 , Good and competitive exchange
rates and cross currency rates
Select The Blank

Question ________Bill of lading must specify the name of the ship.
Correct Answer "On Board"
Your Answer "On Board"

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 General market investments

Question In the context of International economy ,the period between
1920s and 1930s is known as
Correct Answer Great Depression
Your Answer Great Depression
Match The Following

Departure EXW EXW
Main carriage paid CFR CFR
Main carriage unpaid FAS FAS
Arrival DES DES

Question What is the statutory requirement about receivables of exports
from India?
Correct Answer The export receivables must be repatriated within six months of
the date of shipment.
Your Answer The export receivables must be repatriated within six months of
True/False
Question An exporter expecting payment in$ next month will book a
forward purchase contract.
Your Answer True

Question The characteristics of IDA Loan are:
Correct Answer It gives loans to poorer countries , The rate of interest is zero
percent , The repayment period is very long 40 years
Your Answer It gives loans to poorer countries , The rate of interest is zero

Question What is the duty of the AD while booking a forward contract?
Correct Answer Verify the suitable documentary evidence, and that the customer
is exposed to risk , Ensure that a genuine transaction exists
Your Answer Verify the suitable documentary evidence, and that the customer
is exposed to risk , Ensure that a genuine transaction exists ,
Protect the customer fully from exchange risk

Question Criteria for Direct investment abroad under normal route :-
Correct Answer Viability of the proposal, and excellent track record of business ,
Experience and expertise of promoters, benefit to the country
Your Answer Viability of the proposal, and excellent track record of business ,
Experience and expertise of promoters, benefit to the country ,
Total Financial commitment in JV/WOS as per prescribed ceiling

Question When was the first currency swap introduced in world market?
Correct Answer 1970
Your Answer 1970
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

Your Answer Export Inspection Council , Person authorised by Importer. ,

Reserve Bank of India
Match The Following

Cancellation of contracts ECD FEDAI

above USD 500000
Forward Purchase Presume earliest delivery Presume earliest delivery
contract currency at
premium
Forward purchase Presume latest delivery Presume latest delivery
discount
Exchange margins FEDAI ECD
True/False
Your Answer True

market operations
Your Answer Which are convertible , Which have liquidity confirmed in Euro
market operations , Which have greater intrinsic value

Your Answer GBP 300 billion

Question A Bank quotes interest rate of 9.50/10.00 for six months dollar
deposit, here the bid rate is :-
Correct Answer 9.50% P.A.
Your Answer 9.50 divided by 6 =1.58% P.A.
True/False
Your Answer True

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 , Because of protectionism
True/False
Correct Answer True
Your Answer True

Question The major cost components of NIF are :-
Correct Answer Underwriters fees , Margins of notes
Your Answer Underwriters fees , Documentation charges , Issue registration

fees
True/False
Question FRN's issued with ceiling on interest beyond which the issues is
not required to pay interest is known as Mini-Max FRN
Correct Answer True
Your Answer False

Question A weight list, a packing list used in international trade are which
type of documents?
Correct Answer Operational Documents
Your Answer Optional documents
Select The Blank

Question The credit which does not constitute a legally binding
undertaking between the bank and the beneficiary is ________.
Correct Answer Revocable Credit
Your Answer Revocable Credit

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

Question European currency Unit
Correct Answer Basket of Currencies of members of EMS

Your Answer Basket of Currencies of members of EMS
True/False
Question At Least one principal Lender bank is essential for issue of the
ADR or GDR.
Your Answer True
True/False
Question In an already booked forward contract, a person may seek early
delivery, extension in period, or cancellation.
Correct Answer True
Your Answer True

Question A Run on gold gold by a country means
Correct Answer Exchange of reserve currency in to gold
Your Answer Exchange of gold into Reserve Currency

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

Question The Direct Investment abroad through share swap arrangement
under normal route is permitted in a :-
Correct Answer JV/WOS
Your Answer JV/WOS
Select The Blank

True/False
rate.
Correct Answer True
Your Answer True
True/False
Question Corporates are allowed to raise funds abroad up to $ 15 million
as short term finance if they have EPCG license.
Correct Answer True
Your Answer False
Select The Blank

________.
Select The Blank

________.
Your Answer Euro Commercial Papers
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

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
who would issue the documents , Authority who will issue the
documents

Question The crisis in global capital market in 2002-04 was due to
Correct Answer Collapse of Enron , Collapse of Argentina's currency board , The

war against terrorism
Your Answer Collapse of Enron , Collapse of Argentina's currency board , The
Select The Blank

Select The Blank

of ________.
Select The Blank

Question Combined Certificate of Origin and Value are required by
________.
Correct Answer Commonwealth Countries
Your Answer Commonwealth Countries

Question Bank with lowest Bid for fees etc and which undertakes the
responsibility of loan syndication is called :-
Correct Answer The lead bank- leadmanager- arranger
Your Answer The lead bank- leadmanager- arranger

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

Question A Bank quotes interest rate of 9.50/10.00
for six months dollar deposit, here the bid rate is :-

Your Answer 9.50% P.A.
Question What is Sovereign Risk?
Correct Answer Risk of lending to the government of a country
Your Answer Risk of lending to the government of a country

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

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
True/False
Question Out of 15 member countries in European Union 12 countries commiteed themselves
Your Answer True
True/False
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.
Your Answer True
Match The Following

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

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

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.
Your Answer True
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 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

Your Answer Supplemental Reserve Policy

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.
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

Your Answer Short Form

True/False
Question Till August 1994 India was following the Indirect Methodof Rate quotation.
Your Answer False
Select The Blank

Question For setting up joint ventures abroad or equity participation abroad, EXIM bank
provides funds under ________ Scheme.

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

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 ________.
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

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

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

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

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.
Your Answer True

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
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


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
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 ________.
Your Answer Encashment certificate

Your Answer It represents title to goods , It is issued under Transportation act , It is issued
under Bill of exchange act

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

Question In the context of International economy,the period between 1920s and 1930s is
known as

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

from India?
Match The Following

Maturity of future Time when actual Last date of exercising

commodity is delivered option
Note issuance facility Euronotes Facility of issuing bonds
Bearer security issued in Eurobonds Eurobonds

currency other than that of
the country of issue
Margin on future Peformance bond or Peformance bond or
security deposit security deposit
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 Core activity
True/False
Question In developed markets, speculators play important role in
determining the trend of currency rates.
Correct Answer True
Your Answer True
True/False
Question Cash flows generated from aforeign project may replace revenue-
producing imports to the host country
Your Answer False
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 ________.
Your Answer Shelf Registration
True/False
Question Cross currency forward contract is not meaningful if original
contract is in Rupees to USD
Correct Answer True
Your Answer True

Question What maxim is followed by the forex dealer when direct method of
exchange rate quotation is used?
Correct Answer Buy High, Sell Low
Your Answer Buy Low, sell High
True/False
Your Answer False

came from June 92?
Your Answer Other managed Floating

Question In which currency can the EEFC account be opened?
Correct Answer Any Convertible currency
Your Answer Any Convertible currency

Question When is intermediation resorted to?
Correct Answer When The Lender does not know or trust the creditwothiness of
the borrower
Your Answer When The Lender does not know or trust the creditwothiness of
the borrower

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

Question How is the exporter paid through 'import loan'?
Correct Answer The Bank delivers goods to the importer against his 'trustee'
receipt, exporter sells the goods and then pays for the same
Your Answer The Bank delivers goods to the importer against his 'trustee'
True/False
Correct Answer True
Your Answer True

Question Mr A an Indian exporter is expecting to receive payment for
exports in Hong kong dollar, after one month; How can he cover
the exchange rate fluctuation risk?
Correct Answer By booking a A forward contract in HKD itself , By booking a
Cross currency option between USD and HKD and / or USD and
Rs
Your Answer By booking a A forward contract in HKD itself , By booking a
Rs
Match The Following

Forfaiting Discounting export Discounting export

receivables receivables
Buyer's Credit Available to Buyer abroad Available to Buyer abroad
Seller's Credit Available to seller abroad Available to seller abroad
Usance LC Seller paid only on Seller paid only on maturity

maturity date date
Question Which currency is traded in one leg of about 70% of the world's
transactions?
Select The Blank

Question After the second world war many countries adopted the route of
________ to give facelift to sagging economies.

market today?
Your Answer EURO

Question The integrated treasury branches of commercial banks handle
which type of business?
Correct Answer Forex transactions, Derivatives transactions , Mney market and
bond market transactions
Your Answer Forex transactions, Derivatives transactions , Mney market and
bond market transactions , International loans, and borrowings

Question The participants in the Forex Markets are :-
Correct Answer Non banking entities wishing to exchange currencies, , Banks and
their clients , Speculators, arbitragers
Your Answer Non banking entities wishing to exchange currencies, , Banks and

Correct Answer Quotation of forex rates, interest rates , Electronic broking by
matching the rates
Your Answer Quotation of forex rates, interest rates , Electronic broking by
matching the rates , Demat securities

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
Select The Blank

Question EUROCLEAR, CEDEL are the names of ________ related with
the issue of GDR.
Correct Answer Registrars
Your Answer Registrars
Select The Blank

Correct Answer Gold
Your Answer Gold
True/False
Question Multimodal transport document is also known as
"IntermobileTransport Document"
Correct Answer True
Your Answer True

Your Answer Preshipment credit , Post shipment credit , Duty Draw back
Select The Blank

Question Value of USDollar is ________ in the world market but RBI is
trying to match the Rupee value with it.

Question Why did Govt of India initially exercise controls on foreign receipts
and payments?
Correct Answer Conserve and mobilise foreign exchange for war effort
Your Answer Conserve and mobilise foreign exchange for war effort

Question What do firms face while evaluating risks in cross border
investment?
Correct Answer The issues are different, unique to each project, and solutions are
varied
Your Answer The issues are different, unique to each project, and solutions are
varied
Select The Blank

Your Answer Cheque book and nomination
True/False
Question A small percentage of futures contracts actually result in delivery
of the underlying commodity or security.
Correct Answer True
Your Answer False
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.
Your Answer True

Question Which general risks are covered by any insurance policy for
transit?
Correct Answer Theft, loss , Damage, sea perils, non delivery
Your Answer Theft, loss , Damage, sea perils, non delivery

Question Mr A sells an option conferring the right to buy a kilogram of silver
at Rs 8000/- for next six months means :-
Correct Answer The buyer of option can buy silver from Mr A at 8000/- per Kg, in
next 6 months, even if the price goes up, , The buyer of option can
sell silver to Mr A at 8000/- per Kg, in next 6 months, even if the
price goes down.
Your Answer The buyer of option can buy silver from Mr A at 8000/- per Kg, in
price goes down.
Select The Blank
Question In mid 1992 ________ rejected the ratification of Maastricht treaty
Correct Answer Denmark
Your Answer Denmark

Question What non funded facilities are granted by Export Import Bank of
India?
Correct Answer Guarantee for Bid bond, execution of export project, for
borrowings abroad, for retention of money , Advance payment
Guarantee, performance guarantee
Your Answer Guarantee for Bid bond, execution of export project, for
Select The Blank


Correct Answer Demand and supply, interest rates, inflation, , Sentiment,
Speculation
Your Answer Demand and supply, interest rates, inflation, , Sentiment,
Speculation , GDP,Balance of trade and payment,Unemployment
Select The Blank

Question ________ is the acid test for events to be included in country risk.
Correct Answer Control by Government'
Your Answer Control by Government'

Question How many types of documents are required in the International
trade?
Correct Answer Six
Your Answer Six

Question What are the main causes of fluctuations in Exchange rates?
Correct Answer Government regulatios, fiscal policies, political instabilities ,
Market demand and supply, sentiments
Your Answer Government regulatios, fiscal policies, political instabilities ,
Market demand and supply, sentiments , The purchasing power of
currency changes every second

Question Which two countries were included to convert the group of five
into the group of seven?
Correct Answer Canada , Italy
Your Answer Canada , Italy


Question Who are the members of the Special committee on Indian Direct
Investments abroad, for normal route?
Correct Answer Representatives of Ministry of finance, Ministry of Economic
affairs, Ministry of Commerce and RBI
Your Answer Representatives of Ministry of finance, Ministry of Economic

Your Answer Finance functions and development functions
True/False
Question Services of a Paying bank are taken when currencies of exporters country
or the importers country is not involved in the transaction.
Your Answer False
Select The Blank

Question To make the export more competitive and remunerative, the Indian Govt
extends ________ facility.
Correct Answer Cash Incentives
Your Answer Line of credit

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 ,
documents , The track record of the buyer and seller

Question Which of these are not considered as good securities by the banker?
Correct Answer House Airway bill , Postal Receipt
Your Answer House Airway bill , Postal Receipt , On board bill of exchange

Question What is the statutory requirement about receivables of exports from India?
Correct Answer The export receivables must be repatriated within six months of the date
of shipment.
Your Answer The export receivables must be repatriated within six months of the date
of shipment.

Question What do firms face while evaluating risks in cross border investment?
Correct Answer The issues are different, unique to each project, and solutions are varied
Your Answer The issues are different, unique to each project, and solutions are varied
True/False
Your Answer True

Correct Answer Quotation of forex rates, interest rates , Electronic broking by matching the
rates
Your Answer Quotation of forex rates, interest rates , Electronic broking by matching the
rates , Calculate and quote rates for transactions
Match The Following

16 principles for good Business Charter of Business Charter of

environmental conduct sustainable development sustainable development
World Chambers Congress World Federation of Doha
Chambers
13 types of trade contracts INCOTERM World Federation of

Chambers

Question What is the cause of Volatility in the exchange market?
Correct Answer Interest rates are changing, Interest rates affect and are affected by
exchange rates
Your Answer Interest rates are changing, Interest rates affect and are affected by
exchange rates

Correct Answer 26
Your Answer 26
True/False
Your Answer True

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 gold parity
True/False
Question Out of 15 member countries in European Union 12 countries commiteed
themselves for a single currency.
Your Answer False

Question Major investors in NIF are :-
Correct Answer Commercial Banks , Non banking Finance companies , Insurance

Companies
Your Answer Non banking Finance companies , Commercial Banks
Select The Blank

Question The major industrial power whose economy was not affected after the II
world war was ________.
Correct Answer USA
Your Answer Germany

Correct Answer Government regulatios, fiscal policies, political instabilities , Market

demand and supply, sentiments
Your Answer Government regulatios, fiscal policies, political instabilities , Market
demand and supply, sentiments , The purchasing power of currency
changes every second

Question The severemost problem faced by the Fixed exchange rate system was
Correct Answer Inability of US to change gold for dollars
Your Answer Measurement of world liquidity

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 ,
Forex Market , Purchase excess foreign curency from Ads at higher rates
Select The Blank

Question Over the years ________has been the most widely accepted currency in
international capital market.
Match The Following

Departure EXW EXW
Main carriage paid CFR FAS
Arrival DES DES
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
True/False
Question Tranche' is a managed issue of securities in smaller denominations.
Correct Answer True
Your Answer True

Question Which is the most actively traded currency in the international market
today?
Your Answer EURO
True/False
Question Prior approval of RBI is needed for payment of all imports.
Your Answer True
Select The Blank

Question Mostly, countries in the Middle east require ________ invoice, for
facilitating import duties .
Correct Answer Legalised
Your Answer Customs
Select The Blank

Question A ________ Bill of lading does not specify the terms and conditions of
carriage.
True/False
Question Cause of increase in cost of public issues Underwriting fees , selling
commission
Correct Answer True
Your Answer True

Question How many types of documents are required in the International trade?
Correct Answer Six
Your Answer Six

Question If Investment is out of EEFC accounts then :-
Correct Answer Exemption is granted from the criteria of Core activity stipulation under
automatic route
Your Answer Exemption is granted from the criteria of Core activity stipulation under
automatic route
Select The Blank

Question When a credit is made to available to additional beneficiary wholly or
Correct Answer Transferable credit
Your Answer Transferable credit
Select The Blank

Question India is a founder member of ________.
Correct Answer IMF
Your Answer IMF
True/False
Question Bid rate is bidders buying rate and offered rate is bidders selling rate.
Correct Answer True
Your Answer True
Select The Blank

Question When interest rate changes by 0.05 per cent then it has changed
Correct Answer 50
Your Answer 5
Select The Blank

Question Partnership firm not eligible for Overseas Direct Investment needs to
apply to RBI Approval in form ________.
Correct Answer ODI
Your Answer ODA

Question With reference to ECB, fund raising activity includes :-
Correct Answer Floating rate notes, bonds, debentures , Syndicate loans, issue of shares
Your Answer Floating rate notes, bonds, debentures , Syndicate loans, issue of shares
Select The Blank

Question Rupee was liberalised on ________ account in 1993, and on current
account in 1994.
Correct Answer Trade
Your Answer Capital
Select The Blank

Question FRNs are issued for a maturity period of ________ and are normally
redeemed in one shot.
Your Answer Up to 1 year

Question What are the objectives of International Chamber of Commerce?
Correct Answer Champion the global economy as a force of economic growth , Creating of
job and prosperity
Your Answer Champion the global economy as a force of economic growth , Creating of
job and prosperity

Question Which contracts are used for transportation by road?
Correct Answer FCA , CPT
Your Answer FCA , CPT

True/False
Question The volume of trading of Derivatives in the world trade market is growing
but still only 5% of the total.
Your Answer True

Correct Answer Help private enterprise by financing projects , Provide technical assistance
to private enterprise
Your Answer Help private enterprise by financing projects , Provide technical assistance
to private enterprise , Help to maintain the exchange rate stability

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
Select The Blank

Question The ________is a Floating rate index for swaps.
Correct Answer US Commercial paper rate
Your Answer US Commercial paper rate

Your Answer To provide world business recommendations to WTO

True/False
of interest.
Correct Answer True
Your Answer False

foreign exchange?


Market demand and supply, sentiments , The purchasing power
of currency changes every second

Question Why have futures and options come into existence?
Correct Answer To avoid business risk.
Your Answer To avoid business risk.

Your Answer Exchange Banks' Association
Select The Blank

Question A Dealer bought USD at 47.5000, in morning and the USD is
quoted in the noon at 1 USD =48.2000/49.7000, then he has the
opportunity for ________.
Your Answer Arbitrage

Select The Blank
Question Partnership firm not eligible for Overseas Direct Investment
needs to apply to RBI Approval in form ________.
Correct Answer ODI
Your Answer ODA
Select The Blank

Question A ________ Bill of lading does not specify the terms and
conditions of carriage.
Your Answer Dirty

Question Who arranges for Insurance and transportation under EXW
contract?
Correct Answer Buyer arranges and pays
Your Answer Seller
True/False
Your Answer False
Match The Following

European option On or after maturity Before maturity
Out of money Loss Before maturity
In the money Profit no profit no loss
American option Before maturity Buy the contract

countries?
to exchange rates of all the countries , Stop the process of
protectionism in USA
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 Economies

Question What are the powers of restricted money changers?
Correct Answer Purchase foreign currencies
Your Answer Purchase and sell foreign currency notes and travellers cheques

Question Why does a Transaction exposure arise?
Correct Answer Trading flows , Dividend or capital flows
Your Answer Trading flows , Valuation of assets and liabilities abroad in

financial statements

Question What was the purpose of reviewing FERA 1973 in the year
1993?
Correct Answer Economic Liberalisation relating to Foreign trade and Foreign
investments
Your Answer Economic Liberalisation relating to Foreign trade and Foreign
investments
True/False
Question Till August 1994 India was following the Indirect Methodof Rate
quotation.
Your Answer True
True/False
Question Services of a Paying bank are taken when currencies of
exporters country or the importers country is not involved in the
transaction.
Your Answer True

Your Answer Forfaiting , Buyers credit , Foreign currency or Rupee finance
True/False
Your Answer True

Select The Blank

Select The Blank

Your Answer 50 Basis points

Correct Answer Floating rate notes, bonds, debentures , Syndicate loans, issue
of shares
Your Answer Floating rate notes, bonds, debentures , Syndicate loans, issue
of shares , Futures and Forward Rate agreements
Select The Blank

Question Mostly, countries in the Middle east require ________ invoice,
for facilitating import duties .
Your Answer Customs

Question Which invoice is drawn in specific form to be supplied by the
consular office of the importer's country, for treatment of
preferential tariff rates?
Correct Answer Customs invoice
Your Answer Customs invoice

Question Under which method of payments is the buyer not required to
pay till he gets the possession of the documents?
Correct Answer Documents against payment terms specified in the bill of
exchange
Your Answer Documents against payment terms specified in the bill of
exchange

Select The Blank

Question ________ enables bankers to extend purchase, negotiation or
Correct Answer Post shipment credit guarantee
Your Answer Export finance guarantee

Correct Answer Italy , Canada
Your Answer Italy , China
True/False
Correct Answer True
Your Answer True
True/False
Your Answer False



Confirming bank
Confirming bank , The customs and excise authorities

Your Answer Packing list , Weight certificate , PP Form
Select The Blank

Your Answer Services Policy

Question What was the reason for launching swap as an risk hedging
instrument?
Correct Answer To avoid the effects of currency control imposed in UK
Your Answer TO exchange currency debts

Question In a documentary credit the word document means :-
Correct Answer Specified documents of title, transportation, insurance ,

Specified certificates, and other papers required as per the
Your Answer Specified documents of title, transportation, insurance ,
Specified certificates, and other papers required as per the
regulations in the buyers country , Credit is documented as an
evidence
Select The Blank

Your Answer Loan against the EEFC balance
True/False
approval of RBI
Correct Answer True
Your Answer True
Match The Following

Issues linked with FRNs American or Global

LIBOR,LIBID,LIMEAN Depository Receipts
Issue of bonds without FloatingRate Note Mergers & Amalgamations
fixed rate of interest,
linked to short term
interest rate in the global
market
Issue of loans Syndicated Loans FRNs
internationally,through
arranger, underwriter,co
manager, for a large
amount for sharing risk of
lending
Equity issues in the American or Global Syndicated Loans
foreign markets either as Depository Receipts
direct investments or
portfolio investments.

Question In DAF, the frontier means :-
Correct Answer Frontier of exporter's country , Frontier of importer's country
Your Answer Frontier of exporter's country , Frontier of importer's country ,

Frontier of the intermediate country where goods are off loaded

home currency value of profit, loss, or future cash flows ,
Certainty of an event which would happen in favour of the
importer/ exporter

Your Answer FCA , FOB , CFR
True/False
Correct Answer True
Your Answer False
Select The Blank

Question Fixed interest rate Eurobond without the option to convert to
equity is known as ________.
Your Answer hybrid
True/False
Question With the advent of futures and Options there is no need for
additional instruments of risk hedging.
Your Answer False
Select The Blank

Question Profitability of a project in China to an Indian may be enhanced
by ________.
Correct Answer Concessionary finance available in China
Your Answer Subsidiaries and Tax concessions in India

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
Match The Following

Treasury management Profit making Banks and multinationals
Arbitraging Rate disparity Speculation
Futures, Options Hedging instruments Hedging instruments
Exchange Rate volatility Speculation Rate disparity

Question At the request of M/s Universal Traders Calcutta, State Bank of
India opened a documentary credit in Favour of M/s Star
Trading Co Dubai, for USD 25000/-.Here State Bank of India
Calcutta is known as
Your Answer Issuing Bank , Exporters Bank
True/False
Question In UK in london Market the Indirect Quote Method is still
adopted.
Correct Answer True
Your Answer True
True/False
Question The volume of trading of Derivatives in the world trade market is
growing but still only 5% of the total.
Your Answer True

Question How does RBI control Exports?
Correct Answer Through Rule like "Full value of Export bills must be realised in
180 days," , Through Rule like " Export must be denominated In
a currency of the Importing country or a freely convertible
currency"
Your Answer Through Rule like "Full value of Export bills must be realised in
180 days," , Through Rule like " Export must be denominated In
a currency of the Importing country or a freely convertible
currency" , By Issuing a Export Code Number, and monitoring
his exports through returns and statements filed by him
Select The Blank

Question The large flow of money internationally was caused primarily by
the oil price hikes engineered by ________.
Correct Answer OPEC countries
Your Answer OPEC countries
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

Question What is the primary concern of the seller in the International
Trade?
Correct Answer To be sure to get the payment for goods, in time and in the
required currency.
Your Answer To be sure to get the payment for goods, in time and in the
required currency.


Your Answer It is an undertaking given by the openers bank to pay certain
person to another person in different country , It is a stamped
agreement and is not valid unless it is signed by the issuer
Select The Blank

Question To make the export more competitive and remunerative, the
Indian Govt extends ________ facility.
Your Answer Cash Incentives

Question Name the method of payment where the seller neither gets the
guarantee of payment from the bank, nor the possibility of
negotiation of documents :-
Correct Answer Bills for Collection
Your Answer Bills for Collection

Question Which of these are not considered as good securities by the
banker?
Your Answer House Airway bill , Postal Receipt
True/False
Correct Answer True
Your Answer True
Select The Blank

the issue of GDR.
True/False
Question Phytosanitary/ Radiation/Fumigation certificates are in the
category of Health Certificates
Correct Answer True
Your Answer True

Select The Blank

________.

Question Exchange Rate means
Correct Answer Value of one currency in terms of another
Your Answer Value of one currency in terms of another

Correct Answer Collapse of Enron , Collapse of Argentina's currency board ,

The war against terrorism
Your Answer Collapse of Enron , Collapse of Argentina's currency board ,
The war against terrorism
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

Question What is the Indian Govt's obligation of becoming member of
IMF?
Correct Answer Ensure orderly exchange arrangement, promote stable
exchange rate
Your Answer Ensure orderly exchange arrangement, promote stable
exchange rate
Select The Blank

True/False
Correct Answer True
Your Answer True


Guarantee Agency

came from June 92?
Correct Answer Other m anaged Floating

Question The need for global finance for a company is mainly because
of :-
Correct Answer Availability of cheaper funds
Your Answer Increased opportunities of investment abroad
True/False
Your Answer True
True/False
Question In an interest rate swap if the payment schedules are identical,
only diffrence between the two payments is delivered.
Correct Answer True
Your Answer True


Question In case of syndication of loans the amount of loan and currency
is finalised by :-
Correct Answer Borrower
Your Answer Leader of the syndicate
True/False
Question Yankee bond is issued for domestic borrowers.
Your Answer True
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
True/False
Question Country risk analysis is a futile exercise in the background of
cost of analysis.
Correct Answer True
Your Answer True

Question The 'On Board' bill of lading means bill of lading evidencing
that :-
Correct Answer The goods are put on board a ship for shipment
Your Answer The goods are put on board a ship for shipment

Question Which factors influence the valuation of cash flows?
Correct Answer Incomplete capital market , Availability of projkect specific

concessional finance,
Your Answer Availability of projkect specific concessional finance, , Rates of
inflation, , volatility of exchange rates
Match The Following



Usance LC Seller paid only on Seller paid only on
maturity date maturity date

Question What criteria of lending is adopted by The International
Development agency while giving loans to a country?
Correct Answer The per capita income of the borrwoing country , The population
of the borrwoing country
Your Answer The per capita income of the borrwoing country , The population
of the borrwoing country

trade?
Correct Answer Six
Your Answer Six
Select The Blank

Select The Blank

Question In Overseas market the forward rate is generally quoted on the
basis of ________.
Correct Answer Fixed date
Your Answer Fixed date

Question Revolving underwriting facility, short term note issuance facilty,
transferabla revolving undertaking facility are the names of :-
Correct Answer Note issuance facility
Your Answer Note issuance facility
Select The Blank

Your Answer Gold

Question As per article IV of IMF for fixed exchange rates member
countries agreed to
Correct Answer Change exchange rates only for correcting fundamental
disequilibrium in external payments with IMF approval
Your Answer Change exchange rates only for correcting fundamental
disequilibrium in external payments with IMF approval

are in vogue?

decade?

Select The Blank

Question The counter party in option is ________.
Correct Answer The exchange
Your Answer The exchange
Select The Blank

Question An exchange rate for $ was48.2050, it is now 48.2075, then one says that it has moved
________ basis points
Correct Answer 25
Your Answer 25
True/False
Question Cross currency forward contract is not meaningful if original contract is in Rupees to USD
Correct Answer True
Your Answer True

Question What do you understand by a swap?
Correct Answer 2 counter parties agree to exchange streams of payments over a period of time
Your Answer 2 counter parties agree to exchange streams of payments over a period of time
True/False
Question ECGC offers insurance protection to Indian exporters against payment risks.
Correct Answer True
Your Answer True
Select The Blank

Question Value of US Dollar is ________ in the world market but RBI is trying to match the Rupee
value with it.

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

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

Question Borrower from a developing country can borrow from US market
Correct Answer Only if it has high credit rating and the country's Govt gives a guarantee for the
same.
Your Answer Only if it has high credit rating and the country's Govt gives a guarantee for the same.

Question What was the purpose of reviewing FERA 1973 in the year 1993?
Correct Answer Economic Liberalisation relating to Foreign trade and Foreign investments
Your Answer Economic Liberalisation relating to Foreign trade and Foreign investments
Select The Blank

Your Answer Visaed

Question In Import financing through trust receipts, with whom does the ownership of goods
remain?
Correct Answer Bank releasing the import documents
Your Answer Exporter

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
Your Answer He can book a sale contract any time from May 2005 till Mid Sept 2005, for Euro
True/False
Question An Indian exporting goods to New York receives dollars in New York.
Correct Answer True
Your Answer True

Question At the request of M/s Universal Traders Calcutta, State Bank of India opened a
documentary credit in Favour of M/s Star Trading Co Dubai, for USD 25000/-.Here State Bank of
India Calcutta is known as
Your Answer Issuing Bank , Opening Bank

Question The integrated treasury branches of commercial banks handle which type of business?
Correct Answer Forex transactions, Derivatives transactions , Mney market and bond market
transactions
Your Answer Forex transactions, Derivatives transactions , Mney market and bond market
transactions
Select The Blank

Question For setting up joint ventures abroad or equity participation abroad, EXIM bank provides
Match The Following

LastStage Form a single currency Form a single currency
The First stage in the Europeand and Monetary Union (EMU) Free movement of capital in EC Free
movement of capital in EC
Stage II in EMU Establishment of European Monetary Institute Establishment of European Monetary

Institute
Stage III in EMU Members to meet the convergence criteria and fix the exchange rates Members to
meet the convergence criteria and fix the exchange rates


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

Your Answer Buffer Stock Facility

Question Mr A an Indian exporter is expecting to receive payment for exports in Hong kong dollar,
after one month; How can he cover the exchange rate fluctuation risk?
Correct Answer By booking a A forward contract in HKD itself , By booking a Cross currency
option between USD and HKD and / or USD and Rs
Your Answer By booking a A forward contract in HKD itself , By booking a Cross currency option
between USD and HKD and / or USD and Rs
True/False
Question Bridge Loans are granted for construction of large size bridges, and flyovers.
Your Answer True
True/False
Question Integrated branches of Commercial banks handle forex transactions as well as options,
Correct Answer True
Your Answer True
Match The Following

Investment under Automatic route Form ODA Form ODA
Proposal under non-automatic route RBI RBI
Proposal under Normal route Special Committee Special Committee
Investment by partnerships not in core activity form ODI form ODI

Correct Answer Quotation of forex rates, interest rates , Electronic broking by matching the rates
Your Answer Quotation of forex rates, interest rates , Electronic broking by matching the rates

Question Before abandoning the Fixed exchange rate system, the Dollar gold parity was fixed by
USA at
Correct Answer USD 35 per Ounce of gold
Your Answer USD 35 per 10 grams of gold
Select The Blank

Question After the Second World War many countries adopted the route of ________ to give
facelift to sagging economies.
True/False
Question Country risk analysis is a futile exercise in the background of cost of analysis.
Correct Answer True
Your Answer True

Correct Answer Demand and supply, interest rates, inflation, , Sentiment, Speculation
Your Answer Demand and supply, interest rates, inflation, , Sentiment, Speculation , Literacy,
Health of people

Question A country needs external commercial borrowings to :-
Correct Answer Meet the adverse balance of payments position
Your Answer Meet the adverse balance of payments position

Question With whom can an exporter or importer book the forward contract?

Question World Bank gives loans for
Correct Answer Structural Adjustments, Infrastructure projects, BOP problems
Your Answer Structural Adjustments, Infrastructure projects, BOP problems

Correct Answer Export Inspection Council, Person authorized by Importer.
Your Answer Export Inspection Council, Person authorized by Importer.
True/False
Correct Answer True
Your Answer True
True/False
Question Out of 15 member countries in European Union 12 countries committed themselves for a
single currency.
Your Answer False
Select The Blank
Question FRNs are issued for a maturity period of ________ and are normally redeemed in one
shot.

Question Criteria for investment abroad under automatic route :-
Correct Answer Activity for investment is core activity of Indian Company. , Total Financial
Your Answer Activity for investment is core activity of Indian Company. , Total Financial
Select The Blank

Question ECGC provides cover to an Indian contractor for construction work abroad under
________.
Select The Blank

Your Answer Redclause credit

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
Select The Blank

Your Answer Copy of

Correct Answer Issuing various insurance policies covering different risks connected with exports at
nominal premium
Your Answer Issuing various guarantees covering different risks connected with exports at nominal
premium,
True/False
Your Answer True
Select The Blank

Question Forward Margin makes a currency costlier then the currency is at ________.
Your Answer Premium

Question Transaction exposures arises because of: -
Correct Answer The cost of settlement of future payment changes, Receipt denominated in a foreign
currency varies due to exchange rate fluctuation
Your Answer The cost of settlement of future payment changes, Receipt denominated in a foreign
currency varies due to exchange rate fluctuation , Pricing of assets and liabilities in different countries
True/False
of interest.
Correct Answer True
Your Answer True


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 , It is an
undertaking given by the openers bank to pay certain sum of
money
True/False
Question Normally the forward contracts are booked for making huge
profits.
Your Answer True

Question What do you understand by a forex option?
Correct Answer Right and not the obligation to take or give future delivery of an
Your Answer Right and not the obligation to take or give future delivery of an

True/False
Question Postal receipt is an acknowledgement of receipt of goods, a
quasi negotiable instrument.
Your Answer True
True/False
Question Open Insurance policy is for any amount for specific period and
specific number of shipments.
Your Answer False

Question What schemes have been floated by RBI for facilitating Inter
bank transactions?
Correct Answer Clearing house for settlement and clearance for the operations
Your Answer Clearing house for settlement and clearance for the operations


decade?
Select The Blank

Your Answer Special drawing right
Select The Blank

Question During the fixed rate exchange system prevailing in India, the
intervention currency was ________.
Correct Answer Sterling Pound
Your Answer USDollar
True/False
approval of RBI
Correct Answer True
Your Answer False


Confirming bank
Confirming bank

Correct Answer Help private enterprise by financing projects , Provide technical

Your Answer Help private enterprise by financing projects , Provide technical
True/False
Your Answer False

Question "Currency Snake"
Correct Answer Plus or minus movement of exchange rate around the parity rate
Your Answer Plus or minus movement of exchange rate around the parity rate
Select The Blank

of ________.

Question With whom can an exporter or importer book the forward
contract?
True/False
Question An Indian exporting goods to New York receives dollars in New
York.
Correct Answer True
Your Answer False

market operations
Your Answer Which have liquidity confirmed in Euro market operations ,
Which are convertible

Question What Preshipment facility is granted by EXIM Bank to an
exporter?
Correct Answer Preshipment credit beyond six months for construction and
Your Answer Preshipment credit beyond six months for construction and
True/False
Correct Answer True
Your Answer True

Select The Blank


Correct Answer Hedges, interest rate swaps, currency swaps. , Caps and
Your Answer Hedges, interest rate swaps, currency swaps. , Caps and
True/False
Question Out of 15 member countries in European Union 12 countries
commiteed themselves for a single currency.
Your Answer True
Select The Blank

________.
Match The Following

Investment by form ODI form ODI

partnerships not in core
activity
Investment under Form ODA Form ODA
Automatic route
Proposal under non RBI Form NAR
automatic route
Proposal under Normal Special Committee OAB form
route
True/False
Your Answer True
Select The Blank

Question ________ is drawn by taking mean of the bid and offered rates.
Correct Answer Middle rate
Your Answer Average rate
Match The Following

IBRD World Bank World Bank
Collapse of IMF Early 1970s SDR

administered fixed
exchange rates
No International control Mid 80s 2002
on Exchange rates
Euro as a currency 2002 Mid 80s
note/coin
Select The Blank
Question An option on a future is ________.
Correct Answer Derivative on a derivative
Your Answer Derivative on a derivative
Select The Blank

________.
Your Answer FRNs

finance
Your Answer Acting as agents for exporters and taking the entire risk of
transit, recovery etc

are in vogue?

Your Answer Export Inspection Council , Person authorised by Importer.

countries?

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.

Your Answer It represents title to goods , It is issued under Sale of Goods act

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.
Your Answer He can book a sale contract any time from May 2005 till Mid
Sept.


Question What is the objective of INCOTERMS?
Correct Answer Arrange for transfer of risk from seller to buyer at a convenient
place
Your Answer Arrange for transfer of risk from seller to buyer at a convenient
place



Guarantee Agency

Your Answer Packing list , Weight certificate
Select The Blank


Â Select The Blank
circulation.
15 Â
Â Â Your AnswerÂ
20 Â
Â
International
Â Development
Â Â Your AnswerÂ
International
Â finance Corporation ,
Multinational Insurance Guarantee
Agency , International Development
Association
Â
Â Â QuestionÂ ÂWhat do you call a 'decreasing
principal swap'?
Amortizing
Â swap
Â Â Your AnswerÂ
Amortizing
Â swap
Â
Â Â QuestionÂ ÂWho can open an EEFC account?
Individuals
resident in India
Â Â Your AnswerÂ
Individuals
resident in India
Â
Â Select The Blank
Â Â QuestionÂ ÂEUROCLEAR, CEDEL are the
names of ________ related with the
issue of GDR.
Registrars
Â
Â Â Your AnswerÂ
Registrars
Â
Â
Â True/False
Â Â QuestionÂ ÂAn Indian importing goods from USA
pays dollars in India.
False Â
Â Â Your AnswerÂ
True
Â
Â
sheet?
By resorting
from floating rate
Â Â Your AnswerÂ
By resorting
from floating rate
Â
Â Â QuestionÂ ÂHow many Countries participated in
the third survey on Foreign
Exchange, coordinated by BIS in
1992?
26 Â
Â Â Your AnswerÂ
26 Â
Â
Â True/False
Â Â QuestionÂ ÂIn red clause credit some clauses
are printed in Red ink.
True Â
Â Â Your AnswerÂ
False
Â
Â
Â Select The Blank
0.025 Â
Â Â Your AnswerÂ
50 basis
Â points over LIBOR
Â
Â Â QuestionÂ ÂFor issuing a Documentary credit
The applicant is required to provide
to the issuing bank details about
The purchase-sales
Â contract, the
payment , The documents required,
the names of authorities who would
issue the documents
Â Â Your AnswerÂ
TheÂpurchase-sales contract, the
payment , The track record of the
buyer and seller
Â
Â Â QuestionÂ ÂExchange Rate means
Value Â
of one currency in terms of
another
Â Â Your AnswerÂ
Value
Â of one currency in terms of
another
Â
Â Â QuestionÂ ÂWhat do you understand by 'bill of
lading in a quasi negotiable
instrument'?
It is a document
Â of title to goods and
Â Â Your AnswerÂ
It isÂa document of title to goods and
Â
Â Â QuestionÂ ÂWhere does the word derivative
originate from?
Mathematics
Â
Â Â Your AnswerÂ
Mathematics
Â
Â
Â Â QuestionÂ ÂWhat options does the merchant
have while booking a forward
contract?
Delivery
maximum one month
Â Â Your AnswerÂ
Delivery
maximum one month , A day within
next 1 year
Â
Â Select The Blank
Â Â QuestionÂ ÂEEFC account holder is allowed to
have ________ facility.
Cheque
Â Â Your AnswerÂ
Cheque
Â
Â True/False
security.
True Â
Â Â Your AnswerÂ
TrueÂ
Â
Â True/False
Â Â QuestionÂ ÂLong in futures means a
commitment to sell futures at a
future date.
False Â
Â Â Your AnswerÂ
True
Â
Â
Â Â QuestionÂ ÂWhat are the categories of
exposures, a person faces in
International trade?
Transaction
exposure
Â Â Your AnswerÂ
Transaction
exposure
Â
Â True/False
Â Â QuestionÂ ÂNaked position is when investor

does not hedge against market risk.
True Â
Â Â Your AnswerÂ
True
Â
Â
Â Â QuestionÂ ÂThe participants in the Forex
Markets are :-
Non banking
Â entities wishing to
arbitragers
Â Â Your AnswerÂ
NonÂbanking entities wishing to
arbitragers
Â Select The Blank
Â Â QuestionÂ Â________ is the acid test for events

to be included in country risk.
Control
Â by Government'
Â Â Your AnswerÂ
Predictability
Â
Â
Â Â QuestionÂ ÂCriteria for Direct investment abroad
under normal route :-
Viability
Â Â Your AnswerÂ
Viability

Answer
16 principles Business Business Charter of
for good Charter of sustainable
environmental sustainable development
conduct development
World World World Federation of
Chambers Federation of Chambers
Congress Chambers
ICC Marrakesh Marrakesh
Conference in
2004
13 types of INCOTERM INCOTERM
trade contracts
Â
Â True/False
Â Â QuestionÂ ÂPP Form is required when exports
are made to any country by post
parcel on value payable basis.
False Â
Â Â Your AnswerÂ
True
Â
Â
Â Â QuestionÂ ÂThe investor is in the money when :-
The exercise
Â price is below the spot
price for a call option , The exercise
price is above the spot price for a
put option
Â Â Your AnswerÂ
TheÂexercise price is above the spot
price for a put option , The exercise
price is below the spot price for a put
option
Â
Â Â QuestionÂ ÂUnder which category of exchange
rate did the Indian Rupee came from
June 92?
Other Â
managed Floating
Â Â Your AnswerÂ
Independently
Â floating
Â
process for
Companies
trade
Â Â Your AnswerÂ
Cooperative
Â societies abroad
Â
Â Select The Blank
Â Â QuestionÂ ÂThe Trans European Automated
Real Time Gross Settlement
Express Transfer is popular in
________.
Brussels
Â
Â Â Your AnswerÂ
Frankfurt
Â
Â
Â Â QuestionÂ ÂWhat is the duty of the AD while
booking a forward contract?
Verify Â
the suitable documentary
genuine transaction exists
Â Â Your AnswerÂ
Verify
Â the suitable documentary
genuine transaction exists , Protect
the customer fully from exchange
risk
Â
Â Select The Blank
Â Â QuestionÂ ÂEven after liberalisation of exchange
controls, the Euro sterling market
remained volatile because of
uncertainties in UK and gyrations of
sterling against major ________
countries
OECDÂ
Â Â Your AnswerÂ
OECD
Â
Â
Â Â QuestionÂ ÂWith whom can an exporter or
importer book the forward contract?
Authorised
Â dealer/Authorised person
Â Â Your AnswerÂ
AnyÂbank in India
Â
Â Select The Blank
Â Â QuestionÂ ÂTo make the export more

competitive and remunerative, the
Indian Govt extends ________
facility.
Cash Incentives
Â
Â Â Your AnswerÂ
LineÂof credit

50.5000/52.5050. Which is the bid
rate for USD?
USD 1=Rs
Â 50.5000
Â Â Your AnswerÂ
USD
Â 1=Rs 50.5000 + margin
Â
Â True/False
operation.
True Â
Â Â Your AnswerÂ
True
Â
Â
Â Â QuestionÂ ÂAs regards the due date of an

Option exercise which methods are
in vogue?
American
Â Â Your AnswerÂ
American
Â
Â Select The Blank
Â Â QuestionÂ ÂIn mid 1992 ________ rejected the
ratification of Maastricht treaty
Denmark
Â
Â Â Your AnswerÂ
UK Â
Â
Â Â QuestionÂ ÂHow does ECGC protect exporters

against risks for export finance
IssuingÂ various insurance policies
covering different risks connected
with exports at nominal premium
Â Â Your AnswerÂ
Issuing
Â various guarantees covering
different risks connected with
exports at nominal premium,
Â
Answer
legs of selling
buying and
selling
Euro currencies
currencies
buying and currency
selling a
currency
between bid
and offer
Â
Â True/False
Â Â QuestionÂ ÂCountry risk analysis is a futile
exercise in the background of cost of
analysis.
True Â
Â Â Your AnswerÂ
False
Â
Â
Â Â QuestionÂ ÂWhat is the volume of the world's
average daily transactions in foreign
exchange?
USD 1Âtrillion
Â Â Your AnswerÂ
USD Â 1 trillion
Â
Â Â QuestionÂ ÂIn DAF, the frontier means :-
Frontier
Â Â Your AnswerÂ
Frontier
Â
Â True/False
True Â
Â Â Your AnswerÂ
True
Â
Â
Â Select The Blank
Â Â QuestionÂ ÂThe option which can be exercised
on the maturity date and not before it
is known as________.
European
Â Option
Â Â Your AnswerÂ
European
Â Option
Â
Â True/False
Â Â QuestionÂ ÂSandby credis are introduced by US

Banks because they were not
permitted to issue on demand
guarantees.
True Â
Â Â Your AnswerÂ
True
Â
Â
Â Â QuestionÂ ÂAt the request of M/s Universal
Traders Calcutta, State Bank of
India opened a documentary credit
in Favour of M/s Star Trading Co
Dubai, for USD 25000/-.Here State
Bank of India Calcutta is known as
IssuingÂ Bank , Opening Bank
Â Â Your AnswerÂ
Issuing
Â Bank , Confirming Bank
Â
Â Select The Blank
Â Â QuestionÂ ÂUnder the ________ standard the
Country's Central Bank promised to
buy back the currency at certain rate
of Gold.
Gold Â
Â Â Your Gold
AnswerÂ Â Â
International
Â Development
Â Â Your AnswerÂ
International
Â Development
Â
Â Â QuestionÂ ÂEquity can be raised internationallly
by a company through :-
Fund raising,
Â underwriting, hedging ,
arbitration operations
Â Â Your AnswerÂ
Floating
Â debt instruments

legs of selling
buying and
selling
Euro currencies
currencies
buying and currency
selling a
currency
between bid
and offer
Â
Â True/False
True Â
Â Â Your AnswerÂ
True
Â
Â
Â Select The Blank
Â Â QuestionÂ ÂThe large flow of money
internationally was caused primarily
by the oil price hikes engineered by
________.
OPECÂcountries
Â Â Your AnswerÂ
European
Â Countries
Â
Â Select The Blank
Â Â QuestionÂ Â________ enables bankers to
extend purchase, negotiation or
Post shipment
Â credit guarantee
Â Â Your AnswerÂ
Export
Â finance guarantee
Â
Â Â QuestionÂ ÂWhich non financial service does
EXIM Bank give to an exporter?
Provide
Industries
Â Â Your AnswerÂ
Provide
Industries
Â
Â Â QuestionÂ ÂWhich debits are permitted to EEFC
accounts?
Payment
by them
Â Â Your AnswerÂ
Payment
by them
Â
Â True/False
Â Â QuestionÂ ÂTerms in an Irrevocable credit can
not be alterred at all.
False Â
Â Â Your AnswerÂ
TrueÂ
Â
Â Â QuestionÂ ÂHow many INCOTERMS are there in
"Departure" Group?
One Â
Â Â Your AnswerÂ
OneÂ
Â
Â Â QuestionÂ ÂHow does ICC access Govt and
influence Governmental decisions?
ThroughÂ national committees
Â Â Your AnswerÂ
Through
Â national committees
Â
Â Â QuestionÂ ÂA Usance bill of exchange may be
drawn in 2 ways. Which are they?
Documents
Â Â Your AnswerÂ
Documents
Â
Â Â QuestionÂ ÂName the single most important
factor which may devastate the
economic viability of an operation in
international trade :-
Unfavourable
exchange rate
Â Â Your AnswerÂ
Unfavourable
exchange rate
Â
Â True/False
operation.
True Â
Â Â Your AnswerÂ
TrueÂ
Â
Â Select The Blank
Â Â QuestionÂ ÂWhen interest rate changes by 0.05
per cent then it has changed
50 Â
Â Â Your AnswerÂ
50 Â
Â
Â Select The Blank
Â Â QuestionÂ ÂIndia is a founder member of
________.
IMF Â
Â Â Your AnswerÂ
BANKNET
Â
Â
Â Â QuestionÂ ÂHow many types of documents are
required in the International trade?
Six Â
Â Â Your AnswerÂ
Six Â
Â
Â Â QuestionÂ ÂExport finance
Preshipment
credit , Duty Draw back
Â Â Your AnswerÂ
Preshipment
credit , Buyers credit
Â
Â Select The Blank
Â Â QuestionÂ ÂWhen a credit is made to available
to additional beneficiary wholly or
Transferable
Â credit
Â Â Your AnswerÂ
Transferable
Â credit
Â
Â True/False
security.
True Â
Â Â Your AnswerÂ
True Â
Â
Â Select The Blank
Â Â QuestionÂ ÂAn exchange rate for $ was48.2050,
it is now 48.2075, then one says that
it has moved ________ basis points
25 Â
Â Â Your AnswerÂ
0.0025
Â
Â
Â True/False
Â Â QuestionÂ ÂTransfer of funds for investment
abroad is allowed freely.
True Â
Â Â Your AnswerÂ
True
Â
Â
Â Select The Blank
0.025 Â
Â Â Your AnswerÂ
0.025
Â
Â
Â Â QuestionÂ ÂWhat do you understand by 'Foreign
Exchange Risk'?
The change
Â 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
Â Â Your AnswerÂ
Certainty
Â of an event which would
happen in favour of the importer/
exporter , Inability to control various
factors contributing to International
trade
Â

process for
Companies
trade
Â Â Your AnswerÂ
Companies
trade
Â
Â True/False
Â Â QuestionÂ ÂImport finance is nomally available
at rates of interest cheaper than
domestic finance rates.
False Â
Â Â Your AnswerÂ
False
Â
Â Select The Blank

circulation.
15 Â
Â Â Your AnswerÂ
12.5Â

Â Â QuestionÂ ÂWhich type of Convertibility of
Limited
Â convertibility
Â Â Your AnswerÂ
Convertibility
Â

sheet?
By resorting
from floating rate
Â Â Your AnswerÂ
By resorting
floating rate , Prepayment of existing
debts , Raising new loans
Â

50.5000/52.5050. Which is the
USD 1=Rs
Â 50.5000
Â Â Your AnswerÂ
USD Â 1=Rs 50.5000 + margin
Â
Â Â QuestionÂ ÂWhat facilities are proposed by

Housing
invest in MMMF
Â Â Your AnswerÂ
Housing
invest in MMMF , Permission to sale
shares under Port folio investment
be denied
Â
Â Â QuestionÂ ÂWhich document is used for
marine?
Multimodal
Â Â Your AnswerÂ
Multimodal
Â
Â Â QuestionÂ ÂUnder which contracts the seller
pays the import duty for the buyer?
DDP Â
Â Â Your AnswerÂ
DDU Â
Â
Â True/False
Â Â QuestionÂ ÂDealing room is a place where the
actual exchange of currencies takes
place phsically at predetermined
rates.
False Â
Â Â Your AnswerÂ
True
Â
Â
Â Â QuestionÂ ÂWhat was the reason for launching
swap as an risk hedging instrument?
To avoid
Â Â Your AnswerÂ
To avoid
Â
Â Select The Blank
Â Â QuestionÂ ÂThe creditworthiness of futures
MarginÂ
Â Â Your AnswerÂ
Margin
Â
Â
Â True/False
Â Â QuestionÂ ÂIn forward sales, the delivery refers
to actual cash flows on due date.
True Â
Â Â Your AnswerÂ
TrueÂ
Â
Â Â QuestionÂ ÂIn a documentary credit the word
document means :-
Specified
buyers country
Â Â Your AnswerÂ
Specified
buyers country , Credit is
documented as an evidence
Â
Â True/False
Â Â QuestionÂ ÂThe amount in EEFC account can
be deposited in FCNR account to
get interest.
False Â
Â Â Your AnswerÂ
True
Â
Â
Â True/False
Â Â QuestionÂ ÂADR Level I, is the final step to enter
US erquity market.
False Â
Â Â Your AnswerÂ
False
Â
Â
Â Â QuestionÂ ÂAs per BIS, recovery from the recent
crisis in global capital market was
mainly due to
Rapid Âand appropriate policy
Investments , free flow of credit
Â Â Your AnswerÂ
Rapid
Â and appropriate policy
Investments , free flow of credit ,
Devaluation of currencies
Â
Â Â QuestionÂ ÂWhat is the effect of cross currency
option on the customer?
He gets
Â the flexibility to exposure ,
He is exposed to additional risk of
movement of rates between 3
currencies
Â Â Your AnswerÂ
He Âgets the flexibility to exposure ,
His profit increases
Â
Â Â QuestionÂ ÂIn case the value date happens to
be a holiday then the settlement is
done :-
On theÂnext working day
Â Â Your AnswerÂ
On Â
the next working day
Â
Â Select The Blank
Â Â QuestionÂ ÂAfter the second world war many
countries adopted the route of
________ to give facelift to sagging
economies.
Devaluation
Â Â Your AnswerÂ
Devaluation
Â
Â Select The Blank
Â Â QuestionÂ Â________Bill of lading must specify
the name of the ship.
"On Board"
Â
Â Â Your AnswerÂ
"OnÂBoard"
Â
Â Â QuestionÂ ÂWhose permission was necessary
for forming the Association of
Reserve
Â Bank of India
Â Â Your AnswerÂ
Reserve
Â Bank of India
Â
Answer
European On or after On or after maturity
option maturity
Out of money Loss Loss
In the money Profit Profit
American Before Before maturity
option maturity Â
Â Â QuestionÂ
The ÂWorld Bank Group Consists
of
Â Â CorrectInternational
AnswerÂ Â Development
Â Â Your AnswerÂ
International
Â Development
Â
Â Â QuestionÂ
Equity
Â can be raised
internationallly by a company
through :-
Â Â CorrectFund
AnswerÂ
raising,
Â underwriting,
hedging , arbitration operations
Â Â Your AnswerÂ
FloatingÂdebt instruments
Â
Â Â QuestionÂ
Financial
Â management is complex
process for
Â Â CorrectCompanies
AnswerÂ Âwhich have
international trade
Â Â Your AnswerÂ
CompaniesÂ which have
international trade
Â
Â True/False
Â Â QuestionÂ
Import
Â finance is nomally
available at rates of interest
cheaper than domestic finance
rates.
Â Â CorrectFalse
AnswerÂ Â
Â Â Your AnswerÂ
False Â
Â
Â Select The Blank
Â Â QuestionÂ
The Âstock of foreign reserves in
India, is now around ________ %
of the GDP and exceeds money
circulation.
Â Â Correct15
AnswerÂ Â
Â Â Your AnswerÂ
12.5 Â
Â
Â Â QuestionÂ
Which
Â type of Convertibility of
Â Â CorrectLimited
AnswerÂconvertibility
Â
Â Â Your AnswerÂ
Convertibility
Â
Â Â QuestionÂ
HowÂdoes a company use swap to
sheet?
Â Â CorrectByAnswerÂ
resorting
fixed rate , By resorting to fixed
rate from floating rate
Â Â Your AnswerÂ
By resorting
floating rate , Prepayment of
existing debts , Raising new loans
Â
Â Â QuestionÂ
Punjab
Â National Bank Mumbai
50.5000/52.5050. Which is the
Â Â CorrectUSD
AnswerÂ
1=RsÂ50.5000
Â Â Your AnswerÂ
USD 1=Rs
Â 50.5000 + margin
Â
Â Â QuestionÂ
What
Â facilities are proposed by
Â Â CorrectHousing
AnswerÂLoan
Â to NRI staff of
permitted to invest in MMMF
Â Â Your AnswerÂ
HousingÂLoan to NRI staff of
permitted to invest in MMMF ,
Permission to sale shares under
Port folio investment be denied
Â
Â Â QuestionÂ
Which
Â document is used for
marine?
Â Â CorrectMultimodal
AnswerÂ Âtransport document ,
Â Â Your AnswerÂ
Multimodal
Â
Â Â QuestionÂ
Under
Â which contracts the seller
pays the import duty for the
buyer?
Â Â CorrectDDP
AnswerÂ Â
Â Â Your AnswerÂ
DDU Â
Â
Â True/False
Â Â QuestionÂ
Dealing
Â room is a place where the
actual exchange of currencies
takes place phsically at
predetermined rates.
Â Â CorrectFalse
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
WhatÂ was the reason for
launching swap as an risk
hedging instrument?
Â Â CorrectTo
AnswerÂ
avoid the
Â effects of currency
Â Â Your AnswerÂ
To avoidÂthe effects of currency
Â
Â Select The Blank
Â Â QuestionÂ
The Âcreditworthiness of futures
Â Â CorrectMargin
AnswerÂ Â
Â Â Your AnswerÂ
Margin Â
Â
Â True/False
Â Â QuestionÂ
In forward
Â sales, the delivery
refers to actual cash flows on due
date.
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
In a Â
documentary credit the word
document means :-
Â Â CorrectSpecified
AnswerÂdocuments
Â of title,
transportation, insurance ,
Specified certificates, and other
papers required as per the
Â Â Your Specified documents of title,
AnswerÂ transportation, insurance , Â
ÂChoice Single Answer
Â Â QuestionÂ
In which
AnswerÂ Â
Â Â Your AnswerÂ
Stand By
Â Arrangement
Â
Â Â QuestionÂ
Samuraibonds
Â are
AnswerÂ yen
Â Â Your AnswerÂ
Â
Answer
Returning RFC FCNR,

NRI NRE

Deposits ENT IN
MMMF
ERS t in GDR,
ADR
Â

Â Â QuestionÂ
In which
AnswerÂ Â
Â Â Your AnswerÂ
Stand ByÂ Arrangement
Â
Â Â QuestionÂ
Samuraibonds
Â are
AnswerÂ yen
Â Â Your AnswerÂ
Â
Â Â QuestionÂ
In the
Â context of International economy ,the
period between 1920s and 1930s is known as
Â Â CorrectGreat
AnswerÂ
Depression
Â
Â Â Your AnswerÂ
Great Depression
Â
Â
Â Â QuestionÂ
Sterling
Â Market is attractive for an
international investor because
Â Â CorrectGilts
AnswerÂ
offer higher
Â attractive margin , Choice of
issuing medium term and long term bonds
Â Â Your AnswerÂ
Gilts offer
Â higher attractive margin , Choice of
issuing medium term and long term bonds ,
Linking of issues to currency swaps
Â
Â Select The Blank
Â Â QuestionÂ
WhenÂ interest rate changes by 0.05 per cent
then it has changed ________ basis points.
Â Â Correct50
AnswerÂ Â
Â Â Your AnswerÂ
500 Â
Â
Â Â QuestionÂ
Internationally
Â only those currencies are in
demand
Â Â CorrectWhich
AnswerÂare Â
convertible , Which have liquidity
Â Â Your AnswerÂ
Which areÂ convertible , Which have liquidity
confirmed in Euro market operations , Which
have greater intrinsic value
Â
Â Select The Blank
Â Â QuestionÂ
AfterÂthe second world war many countries
adopted the route of ________ to give facelift
to sagging economies.
Â Â CorrectDevaluation
AnswerÂ Â of their currencies
Â Â Your AnswerÂ
Devaluation
Â
Â Â QuestionÂ
HowÂdoes RBI control Exports?
Â Â CorrectThrough
AnswerÂRule
Â like "Full value of Export bills
convertible currency"
Â Â Your AnswerÂ
ThroughÂRule like "Full value of Export bills
convertible currency" , By Issuing a Export
Code Number, and monitoring his exports
through returns and statements filed by him
Â
Â Select The Blank
Â Â QuestionÂ
OverÂthe years ________has been the most
widely accepted currency in international
capital market.
Â Â CorrectAmerican
AnswerÂ Dollar
Â
Â Â Your AnswerÂ
American
Â Dollar
Â
Â Select The Blank
Â Â QuestionÂ
Any Â
company involved in foreign exchange
transactions is exposed to ________ risk.
Â Â CorrectCurrency
AnswerÂ Â
Â Â Your AnswerÂ
PaymentÂ
Â
Â True/False
Â Â QuestionÂ
An ADÂ can book a forward contract for a part
of the amount of Sale Contract
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
WhyÂdoes a person need protection from
unfavourable movement of exchange rate?
Â Â CorrectUnfavourable
AnswerÂ Â fluctuations in exchange rate
can wipe out the normal business profit
Â Â Your AnswerÂ
He wants
Â to make profit
Â
Answer
Merchant Portfolio management Portfolio

banking managem
ent
Securitizat Issue of debt in the form of Issue of
Prime Highest credit rating Highest
Traditional Loans and cash credit against Loans and
banking security cash
service credit
against
security
Â

Â Â QuestionÂ
A Specific
Â date forward contract can be
booked so as to be :-
Â Â CorrectPayable
AnswerÂ onÂa specific date of the calendar
month
Â Â Your AnswerÂ
PayableÂon a specific date of the calendar
month
Â

Â Â QuestionÂ
What
Â are the sources of raising funds for
exports?
Â Â CorrectSuppliers
AnswerÂcredit
Â , Forfaiting
Â Â Your AnswerÂ
Suppliers
Â credit , Forfaiting , Buyers credit
Â
Â Select The Blank

Â Â QuestionÂ
The Âcounter party in option is ________.
Â Â CorrectThe
AnswerÂ
exchange
Â
Â Â Your AnswerÂ
Trustworthy
Â corporation, who hedges the
risks of market uncertainty
Â
Â True/False
Â Â QuestionÂ
Transfer
Â of funds for investment abroad is
allowed freely.
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â

Â Â QuestionÂ
WhatÂ do you understand by a swap?
Â Â Correct2AnswerÂ
counter parties
Â agree to exchange streams
Â Â Your AnswerÂ
2 counter
Â parties agree to exchange streams
Â
Â True/False
Â Â QuestionÂ
The ÂOption period in the forward contract is at
the option of the Banker, hence the bank has
to be very conservative in quoting rates.
Â Â CorrectFalse
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
WhatÂ are the powers of money changers?
Â Â CorrectPurchase
AnswerÂ andÂ sell foreign currency notes and
travellers cheques
Â Â Your AnswerÂ
Purchase Â and sell foreign currency notes and
travellers cheques
Â
Â Select The Blank
Â Â QuestionÂ
________
Â is drawn by taking mean of the bid
and offered rates.
Â Â CorrectMiddle
AnswerÂrateÂ
Â Â Your AnswerÂ
Basic rate
Â
Â
Â True/False
Â Â QuestionÂ
The Âcredit rating of World Bank is high in the
world Capital market because it operates at
the debt equity ratio of 1:2
Â Â CorrectFalse
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
WhatÂ are the activities of ICC?
Â Â CorrectAribtration
AnswerÂ Â and dispute resolving , Canvass
Â Â Your AnswerÂ
Aribtration
Â and dispute resolving , Canvass
Â
Â Â QuestionÂ
WhoseÂ permission was necessary for forming
the Association of Foreign Exchange Dealers,
in India?
Â Â CorrectReserve
AnswerÂBank
Â of India
Â Â Your AnswerÂ
ReserveÂBank of India
Â
Answer
Returning RFC FCNR,

ERS t in GDR,
ADR
Â True/False
Â Â QuestionÂ
Tranche'
Â is a managed issue of securities in
smaller denominations.
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Select The Blank
Â Â QuestionÂ
A Documentary
Â credit issued on the strength
of another documentary credit is known as
________.
Â Â CorrectBack
AnswerÂ
to Back
Â credit
Â Â Your AnswerÂ
Back to ÂBack credit
Â

Â Â QuestionÂ
WhichÂ is the most actively traded currency in
the international market today?
Â Â CorrectUS
AnswerÂ
Dollar Â
Â Â Your AnswerÂ
US DollarÂ
Â
Â True/False
Â Â QuestionÂ
Till August
Â 1994 India was following the
Indirect Methodof Rate quotation.
Â Â CorrectFalse
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
Which
Â debits are permitted to EEFC
accounts?
Â Â CorrectPayment
AnswerÂofÂhotel bills abroad, payment for
rendered by them
Â Â Your AnswerÂ
PaymentÂ of hotel bills abroad, payment for
rendered by them , Investment abroad in
stocks and shares by an Individual
Â
Â True/False
Â Â QuestionÂ
Normally
Â the forward contracts are booked
for making huge profits.
Â Â CorrectFalse
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
Which
Â factors influence the valuation of cash
flows?
Â Â CorrectIncomplete
AnswerÂ Âcapital market , Availability of
projkect specific concessional finance,
Â Â Your AnswerÂ
Incomplete Â capital market , Rates of inflation,
, volatility of exchange rates
Â
Â True/False
Â Â QuestionÂ
Indian
Â companies are now allowed to freely
invest abroad up to $1.5 million, raised
through GDE or EEFC without prior
permission from RBI.
Â Â CorrectFalse
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
Name Â the services provided by 'Reuter 3000'
in forex market:-
Â Â CorrectQuotation
AnswerÂ ofÂ forex rates, interest rates ,
Electronic broking by matching the rates
Â Â Your AnswerÂ
Quotation
Â of forex rates, interest rates ,
Electronic broking by matching the rates ,
Calculate and quote rates for transactions
Â
Â Â QuestionÂ
Underwriters
Â are more attracted to NIF issue
because of :-
Â Â CorrectLesser
AnswerÂ
risks
Â , Increased returns , Easy
marketability features
Â Â Your AnswerÂ
Lesser risks
Â , Increased returns , High
underwriting fees
Â
Â Â QuestionÂ
In which
Â cases can a Resident Individual in
India acquire foreign securities without prior
approval?
Â Â CorrectGift
AnswerÂ
from aÂperson outside India, or
Â Â Your AnswerÂ
Gift fromÂa person outside India, or
Cashless employees stock option scheme ,
Purchased from NRO/NRNR accounts
Â
Â Select The Blank
Â Â QuestionÂ
A ________
Â Bill of lading does not specify the
terms and conditions of carriage.
Â Â CorrectShort
AnswerÂ
FormÂ
Â Â Your AnswerÂ
Dirty Â
Â
Â Â QuestionÂ
What Â does a speculator accept while dealing
with an option?
Â Â CorrectThe
AnswerÂ
exercise
payment
Â Â Your AnswerÂ
The exercise
payment
Â
Â Â QuestionÂ
For a
Thursday, currencies will be exchanged on :-
Â Â CorrectMonday
AnswerÂ Â
Â Â Your AnswerÂ
Friday Â
Â
Â Â QuestionÂ
Inhow
Â many groups are INCOTERMS
classified?
Â Â CorrectFour
AnswerÂ Â
Â Â Your AnswerÂ
Four Â
Â
Â Select The Blank
Â Â QuestionÂ
In ________
Â transaction the delivery is
postponed from the agreed date.
Â Â CorrectRollover
AnswerÂ Â
Â Â Your AnswerÂ
Future Â
Â
Â True/False
Â Â QuestionÂ
Phytosanitary/
Â Radiation/Fumigation
certificates are in the category of Health
Certificates
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
WhatÂ is the objective of FEDAI?
Â Â CorrectLaying
AnswerÂ
downÂ terms and conditions of
Bankers , Interbank understanding for
transacting forex business and exchange
rates
Â Â Your AnswerÂ
Laying down
Â terms and conditions of
Bankers , Growth of Indian Exports , Ensure
the profitability of Forex business to the
banks
Â
Â True/False
Â Â QuestionÂ
Out Âof 15 member countries in European
Union 12 countries commiteed themselves
Â Â CorrectFalse
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Select The Blank
Â Â QuestionÂ
For setting
Â up joint ventures abroad or equity
participation abroad, EXIM bank provides
Â Â CorrectOverseas
AnswerÂ investment
Â facility
Â Â Your AnswerÂ
Equity Participation
Â scheme
Â
Â Â QuestionÂ
HowÂis the entry into any conuntry's money
market or capital market is restricted?
Â Â CorrectBecause
AnswerÂofÂdifferent tax systems , Because
of different credit standards
Â Â Your AnswerÂ
BecauseÂof different tax systems , Because
of different credit standards , Because of
resistance by dealer's associations
Â
Â Select The Blank
Â Â QuestionÂ
A BillÂ of exchange payable 45 days from date
of shipment, is a means of ________ from
seller to the buyer.
Â Â CorrectCredit
AnswerÂ Â
Â Â Your Payment Â
Select The Blank

Â>Select The Blank
Â Â QuestionÂ
Forward
Â margin makes a currency cheaper
then the currency is at ________.
Â Â CorrectDiscount
AnswerÂ Â
Â Â Your AnswerÂ
PAR Â
Â
Â Â QuestionÂ
Which
Â of these are not considered as good
securities by the banker?
Â Â CorrectHouse
AnswerÂAirway
Â bill , Postal Receipt
Â Â Your AnswerÂ
Postal Receipt
Â , House Airway bill
Â
Â Â QuestionÂ
The ÂDirect Investment abroad through share
swap arrangement under normal route is
permitted in a :-
Â Â CorrectJV/WOS
AnswerÂ Â
Â Â Your AnswerÂ
JV/WOSÂ
Â
Â Â QuestionÂ
WhoÂintroduced the worlds first exchange
traded currency futures?
Â Â CorrectChicago
AnswerÂMercantile
Â Exchange
Â Â Your AnswerÂ
ChicagoÂMercantile Exchange
Â
Â Â QuestionÂ
WithÂreference to ECB, fund raising activity
includes :-
Â Â CorrectFloating
AnswerÂ rate
Â notes, bonds, debentures ,
Â Â Your AnswerÂ
FloatingÂrate notes, bonds, debentures ,
Â
Â Select The Blank
Â Â QuestionÂ
An option
Â on a future is ________.
Â Â CorrectDerivative
AnswerÂ Â on a derivative
Â Â Your AnswerÂ
Irrelevant
Â
Â
Â Â QuestionÂ
HowÂdoes ICC help poor countries?
Â Â CorrectAttract
AnswerÂForeign
with UNCTAD
Â Â Your AnswerÂ
Attract Foreign
with UNCTAD
Â
Â Â QuestionÂ
Which Â functions does the Bill of Lading
serve?
is a document
of goods
Â Â Your AnswerÂ
It is a document
of goods
Â

Stage III in Members to meet the Members
LastStage Form a single currency Free
The First Free movement of capital in EC Establish
stage in ment of
the European
European Monetary
d and Institute
Monetary
Union
(EMU)
Stage II in Establishment of European Establish
EMU Monetary Institute EURO
Bank
Â
Â Â QuestionÂ
For a
Tuesday, where both centers have holiday on
Wednesday, currencies will be exchanged on
:-
Â Â CorrectThursday
AnswerÂifÂit is a working day at both the
centers
Â Â Your AnswerÂ
ThursdayÂ if it is a working day at both the
centers
Â
Intolerable Drop the investment project Cost of
risk evluation
does not
justify
analysis
Country Cost of evluation does not justify Continue
risk analysis the project
Stock Banks are ahead Banks are
market ahead
analysis
Weightag Factors' values Factors'
es % values
Â
Â True/False
Â Â QuestionÂ
Bid rate
Â is bidders buying rate and offered
rate is bidders selling rate.
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â True/False
Â Â QuestionÂ
Resident
Â Individuals in India can acquire
foreign bonus shares on the foreign securities
already held by them without prior approval of
RBI
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
WhatÂ do you understand by Commercial
Risk?
Â Â CorrectProtracted
AnswerÂ Âdefault by the buyer , Insolvency of
the buyer
Â Â Your AnswerÂ
ProtractedÂ default by the buyer , Insolvency of
the buyer , Risk of strikes due to which
commercial activity is haulted
Â
Â Â QuestionÂ
A billÂof exchange issued by a bank which
pays specified sum of money to the holder on
a specific date is called :-
Â Â CorrectBankers'
AnswerÂAcceptance
Â Bond
Â Â Your AnswerÂ
Usance ÂBill of Exchange
Â
Â Select The Blank
Â Â QuestionÂ
Association
Â of several scheduled commercial
banks for forex business is ________.
AnswerÂ Exchange
Â Dealers Association of
India
Â Â Your AnswerÂ
Foreign ÂExchange Dealers Association of
India
Â
Â Select The Blank
Â Â QuestionÂ
The Âmajor industrial power whose economy
was not affected after the II world war was
________.
Â Â CorrectUSA
AnswerÂ Â
Â Â Your AnswerÂ
USA Â
Â
Â True/False
Â Â QuestionÂ
Sterling
Â FRNs are issued in Europe, USA
,Asia
Â Â CorrectFalse
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
Mr MÂ has imported some goods from Greece.
What is the maximum period within which he
must make the payment?
Â Â CorrectSix
AnswerÂ
monthsÂfrom date of shipment
Â Â Your AnswerÂ
Six months
Â from date of bill of exchange
Â
Â Â QuestionÂ
Under
Â the automatic route of Direct
Investment Abroad, what is the restriction on
market purchases?
Â Â Correct50%
AnswerÂ
of theÂnet worth of the investing
company
Â Â Your AnswerÂ
50% of the
Â net worth of the investing
company
Â
Â Select The Blank
Â Â QuestionÂ
For importing
Â goods in India RBI insists on
________ value.
Â Â CorrectCIF
AnswerÂ Â
Â Â Your AnswerÂ
FOB Â
Â
Â Â QuestionÂ
What
Â is the objective of INCOTERMS?
Â Â CorrectArrange
AnswerÂ forÂtransfer of risk from seller to
Â Â Your AnswerÂ
ArrangeÂfor transfer of risk from seller to
Â
Â Â QuestionÂ
NameÂ the members of Exchange Banks
association :-
AnswerÂBanks
Â at Bombay, Calcutta, Delhi,
Madras, Amritsar,
Â Â Your AnswerÂ
Foreign Â
Banks at Bombay, Calcutta, Delhi,
Madras, Amritsar,
Â
Â True/False
Â Â QuestionÂ
Yankee
Â bond is issued for domestic
borrowers.
Â Â CorrectFalse
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â True/False
Â Â QuestionÂ
In the
Â forward rate quotations between two
currencies, when one currency is at discount
the other currency is at premium.
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
False Â
Â
Â Select The Blank
Â Â QuestionÂ
FixedÂ interest rate Eurobond without the
option to convert to equity is known as
________.
Â Â CorrectStraight
AnswerÂ Debt
Â
Â Â Your AnswerÂ
Straight ÂDebt
Â
Â True/False
Â Â QuestionÂ
Cause
Â of increase in cost of public issues
Underwriting fees , selling commission
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
In the
Â syndicated loan arrangement the
borrower has to execute :-
Â Â CorrectSingle
AnswerÂPrincipal
Â loan agreement
Â Â Your AnswerÂ
Single Principal
Â loan agreement
Â
Â Â QuestionÂ
What Â criteria of lending is adopted by The
International Development agency while
giving loans to a country?
Â Â CorrectThe
AnswerÂ
per capita
Â income of the borrwoing
country , The population of the borrwoing
country
Â Â Your AnswerÂ
The per Âcapita income of the borrwoing
country , The repayment capacity. , The
Security offerred.
Â
Â Select The Blank
Â Â QuestionÂ
As aÂresult of the world wars in the 20th
century the ________ of most of the
countries suffered heavily.
Â Â CorrectEconomies
AnswerÂ Â
Â Â Your AnswerÂ
Currencies
Â
Â
Â Select The Blank
Â Â QuestionÂ
Rupee
Â was liberalised on ________ account
in 1993, and on current account in 1994.
Â Â CorrectTrade
AnswerÂ Â
Â Â Your AnswerÂ
Capital Â
Â
Â True/False
Â Â QuestionÂ
Integrated
Â branches of Commercial banks
handle forex transactions as well as options,
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â True/False
Â Â QuestionÂ
Floating
Â rate notes are traded in secondary
market also.
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
What Â maxim is followed by the forex dealer
when indirect method of exchange rate
quotation is used?
Â Â CorrectBuy
AnswerÂ
Low, sell
Â High
Â Â Your AnswerÂ
Buy High,Â Sell Low
Â
Â Select The Blank
Â Â QuestionÂ
In ________
Â Contract seller is like a domestic
seller in destination country
Â Â CorrectDDP
AnswerÂ Â
Â Â Your AnswerÂ
DDP Â
Â
Â Select The Blank
Â Â QuestionÂ
________Bill
Â of lading must specify the name
of the ship.
Â Â Correct"On
AnswerÂ
Board"Â
Â Â Your AnswerÂ
"On Board"
Â
Â
Â Select The Blank
Â Â QuestionÂ
Indian
Â Co. intending to make investment
under Automatic route needs to submit form
________ to RBI with enclosures.
Â Â CorrectODA
AnswerÂ Â
Â Â Your AnswerÂ
ODA Â
Â
Â Â QuestionÂ
What Â is a 'speculator'?
Â Â CorrectTrader
AnswerÂ whoÂis neither hedger nor arbitragor ,
He takes risks for profit
Â Â Your AnswerÂ
Trader who
Â is neither hedger nor arbitragor ,
He takes risks for profit , He buys or sells to
hedge his risk
Â
Â Â QuestionÂ
The Âcharacteristics of IDA Loan are:
gives loans
Â Â Your AnswerÂ
It gives loans
Â
Â True/False
Â Â QuestionÂ
Head Â office of ICC is in Paris because of its
First President Eliance Clementel.
Â Â CorrectTrue
AnswerÂ Â
Â Â Your AnswerÂ
True Â
Â
Â Â QuestionÂ
What Â does the word '"Tombstone" stand for?
Â Â CorrectAdvertisement
AnswerÂ Â which lists the managers,
floated issue
Â Â Your AnswerÂ
Advertisement
Â which lists the managers,
floated issue , Issue without planning, for
short duration
Â
Â Â QuestionÂ
What Â is Risk Syndication facility?
Â Â CorrectSharing
AnswerÂ of Â
risk of non payment by supplier
Â Â Your AnswerÂ
Sharing Âof risk of non payment by supplier
Â
Â Â QuestionÂ
What Â do you understand by 'Foreign
Exchange Risk'?
Â Â CorrectThe
AnswerÂ
change Â in value of currency alters the
cash flows
Â Â Your AnswerÂ
The change
Â in value of currency alters the
cash flows
Â
Â Â QuestionÂ
The Âmaximum period for which a forward
contract can be granted by the AD depends
upon which RBI directives?
Â Â CorrectMaximum
AnswerÂ Period
Â of repatriation of export
Imports
Â Â Your AnswerÂ
Maximum Â Period of repatriation of export
Imports
Â
Â Â QuestionÂ
A Forward
Â purchase contract was booked
with an authorised dealer and subsequently
cancelled .It :-
Â Â CorrectCan
AnswerÂ
be booked
Can be booked again with the same dealer
Â Â Your AnswerÂ
Can be booked
Can be booked again with the same dealer ,
Can be booked only for un booked portion of
the contract.
Â
Â True/False
Â Â QuestionÂ
BothÂfutures and options are traded on a
public exchange.
Â Â CorrectFalse
AnswerÂ Â
Â Â Your AnswerÂ
False Â
Â
Â Â QuestionÂ
The Âcharacteristics of an International
documentary credit are :-
is an undertaking
Â given by the openers
bank to pay certain sum of money , It is an
undertaking given on behalf of a certain
Â Â Your It is an undertaking given by the openers
AnswerÂ bank to pay certain sum of money , It is an
Â undertaking given on behalf of a certain
person to another person in different country ,
It is an unconditional undertaking Â

Question What are the features of Settlement price ?
Correct Answer Price established by the clearing house at the end of each
Your Answer Price established by the clearing house at the end of each
Select The Blank

Your Answer Visaed
True/False
Correct Answer True
Your Answer False

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 , Good and competitive exchange
Select The Blank


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 General market investments

Question In the context of International economy ,the period between
1920s and 1930s is known as
Match The Following

Departure EXW EXW
Main carriage paid CFR CFR
Arrival DES DES

from India?
True/False
Question An exporter expecting payment in$ next month will book a
forward purchase contract.
Your Answer True

Question The characteristics of IDA Loan are:
Correct Answer It gives loans to poorer countries , The rate of interest is zero
Your Answer It gives loans to poorer countries , The rate of interest is zero

Question What is the duty of the AD while booking a forward contract?
Correct Answer Verify the suitable documentary evidence, and that the customer
is exposed to risk , Ensure that a genuine transaction exists
Your Answer Verify the suitable documentary evidence, and that the customer
is exposed to risk , Ensure that a genuine transaction exists ,
Protect the customer fully from exchange risk

Question Criteria for Direct investment abroad under normal route :-
Correct Answer Viability of the proposal, and excellent track record of business ,
Experience and expertise of promoters, benefit to the country
Your Answer Viability of the proposal, and excellent track record of business ,
Experience and expertise of promoters, benefit to the country ,
Total Financial commitment in JV/WOS as per prescribed ceiling

Question When was the first currency swap introduced in world market?
Correct Answer 1970
Your Answer 1970
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

Your Answer Export Inspection Council , Person authorised by Importer. ,

Reserve Bank of India
Match The Following

Cancellation of contracts ECD FEDAI

above USD 500000
Forward Purchase Presume earliest delivery Presume earliest delivery
premium
Forward purchase Presume latest delivery Presume latest delivery
discount
Exchange margins FEDAI ECD
True/False
Your Answer True

market operations
Your Answer Which are convertible , Which have liquidity confirmed in Euro
market operations , Which have greater intrinsic value

Your Answer GBP 300 billion

Question A Bank quotes interest rate of 9.50/10.00 for six months dollar
deposit, here the bid rate is :-
Your Answer 9.50 divided by 6 =1.58% P.A.
True/False
Your Answer True

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 , Because of protectionism
True/False
Correct Answer True
Your Answer True

Question The major cost components of NIF are :-
Correct Answer Underwriters fees , Margins of notes
Your Answer Underwriters fees , Documentation charges , Issue registration

fees
True/False
Correct Answer True
Your Answer False

Question A weight list, a packing list used in international trade are which
type of documents?
Correct Answer Operational Documents
Your Answer Optional documents
Select The Blank

Question The credit which does not constitute a legally binding
undertaking between the bank and the beneficiary is ________.
Correct Answer Revocable Credit
Your Answer Revocable Credit


Question European currency Unit
Correct Answer Basket of Currencies of members of EMS

Your Answer Basket of Currencies of members of EMS
True/False
Question At Least one principal Lender bank is essential for issue of the
ADR or GDR.
Your Answer True
True/False
Question In an already booked forward contract, a person may seek early
delivery, extension in period, or cancellation.
Correct Answer True
Your Answer True

Question A Run on gold gold by a country means
Correct Answer Exchange of reserve currency in to gold
Your Answer Exchange of gold into Reserve Currency

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

Question The Direct Investment abroad through share swap arrangement
under normal route is permitted in a :-
Correct Answer JV/WOS
Your Answer JV/WOS
Select The Blank

True/False
rate.
Correct Answer True
Your Answer True
True/False
Question Corporates are allowed to raise funds abroad up to $ 15 million
as short term finance if they have EPCG license.
Correct Answer True
Your Answer False
Select The Blank

________.
Select The Blank

________.
Your Answer Euro Commercial Papers
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

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
who would issue the documents
Your Answer The purchase-sales contract, the mode of payment, the tenor of
who would issue the documents , Authority who will issue the
documents

Correct Answer Collapse of Enron , Collapse of Argentina's currency board , The

Your Answer Collapse of Enron , Collapse of Argentina's currency board , The
Select The Blank

Select The Blank

of ________.
Select The Blank

Question Combined Certificate of Origin and Value are required by
________.
Correct Answer Commonwealth Countries
Your Answer Commonwealth Countries

Question Bank with lowest Bid for fees etc and which undertakes the
responsibility of loan syndication is called :-
Correct Answer The lead bank- leadmanager- arranger
Your Answer The lead bank- leadmanager- arranger

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

Question A Bank quotes interest rate of 9.50/10.00
for six months dollar deposit, here the bid rate is :-

Your Answer 9.50% P.A.
Question What is Sovereign Risk?
Correct Answer Risk of lending to the government of a country
Your Answer Risk of lending to the government of a country

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

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
Your Answer Rapid and appropriate policy response in US and other countries , Increase in
True/False
Question Out of 15 member countries in European Union 12 countries commiteed themselves
Your Answer True
True/False
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

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
________.
Your Answer Interest rate swap
True/False
Your Answer True
Match The Following

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

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

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.
Your Answer True
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 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

Your Answer Supplemental Reserve Policy

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.
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


True/False
Question Till August 1994 India was following the Indirect Methodof Rate quotation.
Your Answer False
Select The Blank

Question For setting up joint ventures abroad or equity participation abroad, EXIM bank
provides funds under ________ Scheme.

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 ________.
Your Answer Shell Registration

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 ________.
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

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

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

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

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.
Your Answer True

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
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


Your Answer To further the cause of WTO
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 ________.
Your Answer Encashment certificate

Your Answer It represents title to goods , It is issued under Transportation act , It is issued
under Bill of exchange act

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

Question In the context of International economy,the period between 1920s and 1930s is
known as

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

from India?
Match The Following

Maturity of future Time when actual Last date of exercising

commodity is delivered option
Note issuance facility Euronotes Facility of issuing bonds
Bearer security issued in Eurobonds Eurobonds

currency other than that of
the country of issue
Margin on future Peformance bond or Peformance bond or
security deposit security deposit
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 Core activity
True/False
Question In developed markets, speculators play important role in
determining the trend of currency rates.
Correct Answer True
Your Answer True
True/False
Your Answer False
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 ________.
Your Answer Shelf Registration
True/False
Correct Answer True
Your Answer True

Question What maxim is followed by the forex dealer when direct method of
exchange rate quotation is used?
Correct Answer Buy High, Sell Low
Your Answer Buy Low, sell High
True/False
Your Answer False

came from June 92?

Question In which currency can the EEFC account be opened?
Correct Answer Any Convertible currency
Your Answer Any Convertible currency

Question When is intermediation resorted to?
Correct Answer When The Lender does not know or trust the creditwothiness of
the borrower
Your Answer When The Lender does not know or trust the creditwothiness of
the borrower

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
Your Answer He gets the flexibility to exposure , He is exposed to additional risk

Question How is the exporter paid through 'import loan'?
Correct Answer The Bank delivers goods to the importer against his 'trustee'
Your Answer The Bank delivers goods to the importer against his 'trustee'
True/False
Correct Answer True
Your Answer True

Question Mr A an Indian exporter is expecting to receive payment for
exports in Hong kong dollar, after one month; How can he cover
the exchange rate fluctuation risk?
Correct Answer By booking a A forward contract in HKD itself , By booking a
Rs
Your Answer By booking a A forward contract in HKD itself , By booking a
Rs
Match The Following


Usance LC Seller paid only on Seller paid only on maturity

maturity date date
Question Which currency is traded in one leg of about 70% of the world's
transactions?
Select The Blank


market today?
Your Answer EURO

Question The integrated treasury branches of commercial banks handle
which type of business?
Correct Answer Forex transactions, Derivatives transactions , Mney market and
bond market transactions
Your Answer Forex transactions, Derivatives transactions , Mney market and
bond market transactions , International loans, and borrowings

Question The participants in the Forex Markets are :-
Correct Answer Non banking entities wishing to exchange currencies, , Banks and
Your Answer Non banking entities wishing to exchange currencies, , Banks and

Correct Answer Quotation of forex rates, interest rates , Electronic broking by
matching the rates
Your Answer Quotation of forex rates, interest rates , Electronic broking by
matching the rates , Demat securities

foreign exchange?
Select The Blank

the issue of GDR.
Select The Blank

Correct Answer Gold
Your Answer Gold
True/False
Question Multimodal transport document is also known as
"IntermobileTransport Document"
Correct Answer True
Your Answer True

Your Answer Preshipment credit , Post shipment credit , Duty Draw back
Select The Blank

Question Value of USDollar is ________ in the world market but RBI is
trying to match the Rupee value with it.

Question Why did Govt of India initially exercise controls on foreign receipts
and payments?
Correct Answer Conserve and mobilise foreign exchange for war effort
Your Answer Conserve and mobilise foreign exchange for war effort

Question What do firms face while evaluating risks in cross border
investment?
Correct Answer The issues are different, unique to each project, and solutions are
varied
Your Answer The issues are different, unique to each project, and solutions are
varied
Select The Blank

Your Answer Cheque book and nomination
True/False
Question A small percentage of futures contracts actually result in delivery
of the underlying commodity or security.
Correct Answer True
Your Answer False
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.
Your Answer True

Question Which general risks are covered by any insurance policy for
transit?
Correct Answer Theft, loss , Damage, sea perils, non delivery
Your Answer Theft, loss , Damage, sea perils, non delivery

Question Mr A sells an option conferring the right to buy a kilogram of silver
at Rs 8000/- for next six months means :-
Correct Answer The buyer of option can buy silver from Mr A at 8000/- per Kg, in
price goes down.
Your Answer The buyer of option can buy silver from Mr A at 8000/- per Kg, in
price goes down.
Select The Blank
Question In mid 1992 ________ rejected the ratification of Maastricht treaty
Correct Answer Denmark
Your Answer Denmark

Question What non funded facilities are granted by Export Import Bank of
India?
Correct Answer Guarantee for Bid bond, execution of export project, for
Your Answer Guarantee for Bid bond, execution of export project, for
Select The Blank


Correct Answer Demand and supply, interest rates, inflation, , Sentiment,
Speculation
Your Answer Demand and supply, interest rates, inflation, , Sentiment,
Speculation , GDP,Balance of trade and payment,Unemployment
Select The Blank

Question ________ is the acid test for events to be included in country risk.
Correct Answer Control by Government'
Your Answer Control by Government'

trade?
Correct Answer Six
Your Answer Six

Market demand and supply, sentiments , The purchasing power of
currency changes every second

Correct Answer Canada , Italy
Your Answer Canada , Italy


Question Who are the members of the Special committee on Indian Direct
Investments abroad, for normal route?
Correct Answer Representatives of Ministry of finance, Ministry of Economic
Your Answer Representatives of Ministry of finance, Ministry of Economic

Your Answer Finance functions and development functions
True/False
Question Services of a Paying bank are taken when currencies of exporters country
or the importers country is not involved in the transaction.
Your Answer False
Select The Blank

Question To make the export more competitive and remunerative, the Indian Govt
extends ________ facility.
Your Answer Line of credit

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 ,
documents
Your Answer The purchase-sales contract, the mode of payment, the tenor of payment ,
documents , The track record of the buyer and seller

Question Which of these are not considered as good securities by the banker?
Your Answer House Airway bill , Postal Receipt , On board bill of exchange

Question What is the statutory requirement about receivables of exports from India?
Correct Answer The export receivables must be repatriated within six months of the date
of shipment.
Your Answer The export receivables must be repatriated within six months of the date
of shipment.

Question What do firms face while evaluating risks in cross border investment?
Correct Answer The issues are different, unique to each project, and solutions are varied
Your Answer The issues are different, unique to each project, and solutions are varied
True/False
Your Answer True

Correct Answer Quotation of forex rates, interest rates , Electronic broking by matching the
rates
Your Answer Quotation of forex rates, interest rates , Electronic broking by matching the
rates , Calculate and quote rates for transactions
Match The Following

16 principles for good Business Charter of Business Charter of

environmental conduct sustainable development sustainable development
World Chambers Congress World Federation of Doha
Chambers
13 types of trade contracts INCOTERM World Federation of

Chambers

Question What is the cause of Volatility in the exchange market?
Correct Answer Interest rates are changing, Interest rates affect and are affected by
exchange rates
Your Answer Interest rates are changing, Interest rates affect and are affected by
exchange rates

Correct Answer 26
Your Answer 26
True/False
Your Answer True

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 gold parity
True/False
Question Out of 15 member countries in European Union 12 countries commiteed
themselves for a single currency.
Your Answer False

Question Major investors in NIF are :-
Correct Answer Commercial Banks , Non banking Finance companies , Insurance

Companies
Your Answer Non banking Finance companies , Commercial Banks
Select The Blank

Question The major industrial power whose economy was not affected after the II
world war was ________.
Correct Answer USA
Your Answer Germany

Correct Answer Government regulatios, fiscal policies, political instabilities , Market

demand and supply, sentiments
Your Answer Government regulatios, fiscal policies, political instabilities , Market
demand and supply, sentiments , The purchasing power of currency
changes every second

Question The severemost problem faced by the Fixed exchange rate system was
Correct Answer Inability of US to change gold for dollars
Your Answer Measurement of world liquidity

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 ,
Forex Market
Your Answer Clearing house for settlement and clearance for the operations of Ads ,
Forex Market , Purchase excess foreign curency from Ads at higher rates
Select The Blank

Question Over the years ________has been the most widely accepted currency in
international capital market.
Match The Following

Departure EXW EXW
Main carriage paid CFR FAS
Arrival DES DES
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
True/False
Question Tranche' is a managed issue of securities in smaller denominations.
Correct Answer True
Your Answer True

Question Which is the most actively traded currency in the international market
today?
Your Answer EURO
True/False
Question Prior approval of RBI is needed for payment of all imports.
Your Answer True
Select The Blank

Question Mostly, countries in the Middle east require ________ invoice, for
facilitating import duties .
Your Answer Customs
Select The Blank

Question A ________ Bill of lading does not specify the terms and conditions of
carriage.
True/False
Question Cause of increase in cost of public issues Underwriting fees , selling
commission
Correct Answer True
Your Answer True

Question How many types of documents are required in the International trade?
Correct Answer Six
Your Answer Six

Question If Investment is out of EEFC accounts then :-
Correct Answer Exemption is granted from the criteria of Core activity stipulation under
automatic route
Your Answer Exemption is granted from the criteria of Core activity stipulation under
automatic route
Select The Blank

Question When a credit is made to available to additional beneficiary wholly or
Correct Answer Transferable credit
Your Answer Transferable credit
Select The Blank

Question India is a founder member of ________.
Correct Answer IMF
Your Answer IMF
True/False
Question Bid rate is bidders buying rate and offered rate is bidders selling rate.
Correct Answer True
Your Answer True
Select The Blank

Question When interest rate changes by 0.05 per cent then it has changed
Correct Answer 50
Your Answer 5
Select The Blank

Question Partnership firm not eligible for Overseas Direct Investment needs to
apply to RBI Approval in form ________.
Correct Answer ODI
Your Answer ODA

Correct Answer Floating rate notes, bonds, debentures , Syndicate loans, issue of shares
Your Answer Floating rate notes, bonds, debentures , Syndicate loans, issue of shares
Select The Blank

Question Rupee was liberalised on ________ account in 1993, and on current
account in 1994.
Correct Answer Trade
Your Answer Capital
Select The Blank

Question FRNs are issued for a maturity period of ________ and are normally
redeemed in one shot.
Your Answer Up to 1 year

Question What are the objectives of International Chamber of Commerce?
Correct Answer Champion the global economy as a force of economic growth , Creating of
job and prosperity
Your Answer Champion the global economy as a force of economic growth , Creating of
job and prosperity

Your Answer FCA , CPT

True/False
Question The volume of trading of Derivatives in the world trade market is growing
but still only 5% of the total.
Your Answer True

Correct Answer Help private enterprise by financing projects , Provide technical assistance
to private enterprise
Your Answer Help private enterprise by financing projects , Provide technical assistance
to private enterprise , Help to maintain the exchange rate stability

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
Select The Blank

Question The ________is a Floating rate index for swaps.
Correct Answer US Commercial paper rate
Your Answer US Commercial paper rate

Your Answer To provide world business recommendations to WTO

True/False
Question The control of enviromental aspect Life side analysis.
Correct Answer True
Your Answer False
True/False
Question Enviroment indudes natural resources.
Correct Answer True
Your Answer False
Select The Blank

Question TQM emphasises on ________.
Correct Answer Small improvement
Your Answer Continuous improvement

Question How TQM helps in reducing cost?
Correct Answer By reducing external failure cost , By reducing internal failure
Your Answer By reducing external failure cost , By reducing internal failure
True/False
Question The main business process objective is to serve the customer in
excellent manner.
Correct Answer True
Your Answer True
Select The Blank

Question The Design & Development Review to be carried ________
Correct Answer To evaluate ability of product to meet requirements
Your Answer To evaluate ability of product to meet requirements
Select The Blank

Question Circle represent ________ while plotting flow chart.
Correct Answer Beginning or end of operation
Your Answer Inspection
Select The Blank

Question Rectangle represent ________ While plotting flow chart.
Correct Answer Steps in Activity
Your Answer Steps in Activity
True/False
Question ISO - 9000 -2000 this revision of ISO is currently in use.
Correct Answer True
Your Answer False

Question In TQM philosophy T stand for :-
Correct Answer Total
Your Answer Trust
True/False
Question Prevention of pollution is prevention of cause of pollution.
Correct Answer True
Your Answer True

Question Control chart is :-
Correct Answer Process monitoring tool , Process control tool
Your Answer Process control tool

Question In quality Assurance primary concern is:-
Correct Answer Co-ordination
Your Answer Control

Question Evolution of quality concept. Current era is
Correct Answer Continual Improvement
Your Answer Continual Improvement
True/False
Question Machine down time is waste.
Correct Answer True
Your Answer True

Question Strategic quality management means :-
Correct Answer Strategic Improvement
Your Answer Control

Question Enviromental objective means :-
Correct Answer Over all environmental goal
Your Answer Environmental target

Question Tqm focus on :-
Correct Answer Employee , Customer
Your Answer Management

Question Common elements of winners are :-
Correct Answer Senior management was actively involved , Control of overall

process , Focus on customer
Your Answer Senior management was actively involved
Match The Following

The management Establishment & Establishment &

representative is implementation of QMS implementation of QMS
responsible far
The management review As & when required Documentation
conducted
In ISO the focus on Enhancing customer Supplier satisfaction
customer satisfaction
Responsibility for quality Top management Top management
objective
Match The Following

Dr. Deming believes To prevent defect To prevent defect
Ishikawa development Cause & effect diagram Histogram
Type of variation is due to Common causes Common causes
Crosby's objective of Histogram Quality & productivity work

quality together

Question The benefite of ISO 14001 are applicable to :-
Correct Answer The organisation which adopts it , Adjacent property owner &
enviroment
Your Answer The organisation which adopts it , Preservation of Nature

Question Control chart shows :-
Correct Answer Performance of process
Your Answer Performance of product

Question The mean is :-
Correct Answer Center of process , Target of process
Your Answer Target of process
Select The Blank

Question ________organisations are not eligible for MBNQA.
Correct Answer Software
Your Answer Health care

Question TQM is aiming :-
Correct Answer Long term success
Your Answer Long term success

Question When cpk is less than one, :-
Correct Answer Process is not capable , Process is volatile
Your Answer Process is not capable
True/False
Question Leadership from top should be totally honest & transparent in
dealing .
Correct Answer True
Your Answer True
True/False
Question By Applying basic principle, the process improvement will be in
organization's focuses on work process.
Correct Answer True
Your Answer True

Question Corrective action means :-
Correct Answer Action taken on detecting NC , Action taken on observed NC
Your Answer Action taken on detecting NC , Action taken on defects

Question The process evaluation is to identify :-
Correct Answer Potential improvement in process
Your Answer Correctness of process
Select The Blank

Question The cycle used in EMS is ________.
Correct Answer Plan - Do - check - Act

Your Answer Plan - Do - check - Act
True/False
Question Significant aspect means Perceived Risk.
Correct Answer True
Your Answer False
True/False
Question Enviromental impact is any change to the environment, whether
adverse or beneficial.
Correct Answer True
Your Answer False

Question Employee should be involved in :-
Correct Answer Decision making , Participation
Your Answer Participation
Select The Blank

Question Quality approach is________
Correct Answer Potential failure prevention
Select The Blank

Question The enviromental management system followed by organisation
is ________.
Correct Answer IS0-14001
Your Answer IS0-14001

Question Process Quality planning means :-
Correct Answer Building quality into processes
Your Answer Building quality into processes
Select The Blank

Question Tool is used in TQM implementation is ________.
Correct Answer P -D - C - A
Your Answer Quality circle

Question Current quality concept is :-
Correct Answer Continual improvement , Prevention of defect
Your Answer Continual improvement

Question In statistical quality control, primary concern is :-
Correct Answer Control
Your Answer Co-ordination

Question TQM approach is based on :-
Correct Answer Participation
Your Answer Participation

Question Ishikawa is the originator of :-
Correct Answer Fishbone Diagram , Cause effect Diagram
Your Answer Fishbone Diagram
Select The Blank

Question ________ is calibration activity in company.
Correct Answer Appraisal cost
Your Answer Prevention cost

Question Continual improvement is in :-
Correct Answer Enviromental objective , Audit Result , Corrective action
Your Answer Enviromental objective , Corrective action
Select The Blank

Question Quality approach is________

Question The employee must be :-
Correct Answer Aware about objectives
Your Answer Aware about objectives

Process capability is only calculated when it qualify Bell shape curve.
True
False
In control chart, X bar means :-
a)
Average of Reading
b)
Sum of Reading
c)
Mean of Reading
d) Mode of Reading
In ISO - 90001Quality policy declare by management. Similarly what is specified in ISO - 14001?
a)
Enviromrntal Policy
b)
Enviromentel plan
c)
Enviromentel objectives
d) Enviromental Regulations
20. Quality circle encourage :-
a)
Participation
b) Tem work
c) Groupism
d) Individual Growth
Marks : 2
30.
The documents of external origin
The documents of
external origin :-
a)
Should be controlled
separately
b)
Should have
c) separate system
d) Require special
control
Should have
documented procedure
Continious improvement is improvement of inviromental
system.
True
False
1. Pillar of TQM 1. Due to cut throat competition
2. Need for TQM 2. Employee
3. TQM focuses on 3. Continual improvement management
4. Quality approach 4. Change is technology
5. Productivity -Quality - cost -Delivery

6. Inspection
47.The difference of USL & LSL is range.
True
False
Range is :-
a)
Difference of minimum & maximum
b)
Diff of highest & lowest
c)
Average of Reading
d) Sum of Reading
Select The Blank

Question The primary responsibility of human Resource is ________
Correct Answer To provide competent person
Your Answer To provide competent person

Question The inviromental policy must :-
Correct Answer Be Relevant to the activity , Comply with legislation , Commits to

prevention of pollution
Your Answer Commits to prevention of pollution , Welfare policy
Select The Blank

Question The management review to be conducted ________.
Correct Answer At predetermined interval
Your Answer As & when required
Select The Blank

Question Intangibility is ________.
Correct Answer Service is intangible
Your Answer Service is intangible
Select The Blank

Question Quality means________.
Correct Answer Fitness for use
Your Answer Fitness for use

Question Record may be :-
Correct Answer Procedure to control its use.
Your Answer Retrievable.

Question Poor service is due to :-
Correct Answer Inadequate Resources
Your Answer Untrained people
Select The Blank

Question The quality approach is ________
Your Answer Potential failure prevention

Question What is ISO?
Correct Answer International organization far standard
Your Answer International organization far standard

Question Common features of CMM is how to produce software product
which are :-
Correct Answer Predictable , Consistence , Repeatable
Your Answer Repeatable

Question The records shall be maintained to provide :-
Correct Answer Evidence of conformity to requirement , Demonstrate

effectiveness of system
Your Answer Demonstrate effectiveness of system

Question Dimensions of quality are :-
Correct Answer Performance , Feature , Reliability
Your Answer Performance , Reliability
Match The Following

Mission conveys message Company Mission statement

about
Business vision involve Mission statement Continues improvement
Business objective must Customer satisfaction Short - term improvement

include
TQM emphasize on Continues improvement Customer satisfaction

Question The need for TQM is due to :-
Correct Answer Cut throat competition
Your Answer Cut throat competition
True/False
Question TQM & ISO both focuses on employee.
Your Answer True

Question Reliability of product means :-
Correct Answer Consistency of performance , Performance over period
Your Answer Consistency of performance
True/False
Question Histogram is used to compare data.
Correct Answer True
Your Answer True
Select The Blank

Question Reputation means________.
Correct Answer Past performance
Your Answer Past performance
Match The Following

Bureaucratic Working together for Direction from Boss

excellence
Leadership from top Provide consistent vision Provide consistent vision
direction direction
Excellence mean Satisfy all customer need Satisfy all customer need
Team work mean Unlimited thinking Working together for

excellence

Question While setting Goal ,following things to be consider.
Correct Answer Marketability of product , Organization need
Your Answer Customer need , Marketability of product , Organization need
True/False
Question Quality is fitness for Purpose
Correct Answer True
Your Answer True
True/False
Question Product quality planning should address capability & qualification
of equipment.
Correct Answer True
Your Answer True

Question What is EMS?
Correct Answer Enviromentel management system
Your Answer Enviromentel management system
True/False
Question Quality policy is defined by employee of organisation
Your Answer False

Question Calibration Activity in company is :-
Your Answer Appraisal cost

Question The evaluation & selection of vendor :-
Correct Answer Must have procedure for it
Your Answer To be decided by management

Question Quality objectives :-
Correct Answer Must be relevant to function within organization
Your Answer Must be relevant to function within organization
True/False
Question Periodic review of process to be taken to ensure consistency of
process.
Correct Answer True
Your Answer True
Select The Blank

Question Working together for excellence is ________.
Correct Answer Team work
Your Answer Team work

Question Cause & Effect diagram used to :-
Correct Answer Identify & organize possible causes of problem , Identify possible
causes of problem & determining its relation
Your Answer Identify possible causes of problem & determining its relation

Question In inspection primary concern is :-
Correct Answer Detection of Defect
Your Answer Detection of Defect

Select The Blank
Question Diamond represent ________ while plotting flow chart.
Correct Answer Decision point
Your Answer Decision point
True/False
Question The ISO is based on Plan - do - check- Act.
Correct Answer True
Your Answer True

Question Cost of poor quality comprises :-
Correct Answer Cost of internal failure , Cost of external failure
Your Answer Cost of manufacturing
Select The Blank

Question ________ is one of the major business processes.
Correct Answer Customer servive & supply chain
Your Answer Customer servive & supply chain
Select The Blank

Question Response is________.
Correct Answer Speed
Your Answer Service
Select The Blank

Question Knowing capability of any process is required to ________.
Correct Answer Predict the behavior of process
Your Answer Eliminate source of variation
True/False
Question When process improvements are institutionlized, the process is
optimized level
Your Answer True

Question Process evaluation is to identify :-
Correct Answer Potential failure prevention , Correctness of product

Question Which of the following are depicted as the levels of the TQM?
Correct Answer Culture , Management style
Your Answer Management style

Question Leadership style from top to bottom is :-
Correct Answer Totally honest & transparent , Providing consistent vision /

direction
Your Answer Totally honest & transparent

Correct Answer Detection of Defect , Action on only detected defect

Question In parato Analysis, we have to focus on problem which
contribute :-
Correct Answer 80 % Of total problem , 80 % Of causes.
Your Answer 80 % Of causes.
True/False
Question The European award uses the criteria of efficiency &
effectiveness.
Correct Answer True
Your Answer True
Select The Blank

True/False
Question Physical facilities is tangible dimension.
Correct Answer True
Your Answer True

Question Which is not pillar of TQM
Correct Answer Finance
Your Answer Finance

13.
TQM promotes
TQM-4

Question The management review is carried :-
Correct Answer To ensure effectiveness Of QMS
Your Answer To ensure effectiveness Of QMS

Question Cause & Effect diagram used to :-
Correct Answer Identify & organize possible causes of
problem , Identify possible causes of problem & determining its
relation
Your Answer Identify & organize possible causes of problem ,
Identify possible causes of problem & determining its relation
Select The Blank

Question Circle represent ________ while plotting flow chart.
Correct Answer Beginning or end of operation
Your Answer Beginning or end of operation

Question By Applying basic principle the process improvement
will be in organization's :-
Correct Answer Focus on work process , Maintain self esteem
of other
Your Answer Focus on work process , Maintain self esteem of other
True/False
Question TQM approach is based on Participation.
Correct Answer True
Your Answer True

Question In statistical quality control, primary concern is :-
Correct Answer Control
Your Answer Control
True/False
Question Histogram is used to compare data.
Correct Answer True
Your Answer True
Page 1
TQM-4
Question In control chart, X bar means :-
Correct Answer Average of Reading
Your Answer Average of Reading

Question If some of the activities are outsourced :-
Correct Answer Vendors are approached on predetermined
criteria
Your Answer Vendors are approached on predetermined criteria

Correct Answer Detection of Defect
True/False
Question Quality policy is defined by employee of organisation
Your Answer False

Question Evolution of quality concept. Current era is
Correct Answer Continual Improvement
Your Answer Continual Improvement
Select The Blank

Question The cycle used in EMS is ________.
True/False
Question The process mapping means sequence & interaction of
process.
Correct Answer True
Your Answer True
Select The Blank

Question TQM promotes________
Page 2
TQM-4
Question Ishikawa is the originator of :-
Correct Answer Fishbone Diagram , Cause effect Diagram
Your Answer Fishbone Diagram , Cause effect Diagram

Question Factor in GAP 1 is :-
Correct Answer In sufficient market research , Luck of
interaction between management & customer , Luck of communication
Your Answer In sufficient market research , Luck of interaction
between management & customer , Luck of communication
Select The Blank

Question ________ is calibration activity in company.
Your Answer Appraisal cost

Question Enviromental impact is :-
Correct Answer Any change to envioment resulting from
organization activity
Your Answer Any change to envioment resulting from organization
activity

Question Reliability of product means :-
Correct Answer Consistency of performance , Performance over
period
Your Answer Consistency of performance , Performance over period
Select The Blank

Question The enviromental management system followed by
organisation is ________.
Correct Answer IS0-14001
Your Answer IS0-14001

Question Which of the following are depicted as the levels of
the TQM?
Correct Answer Culture , Management style
Your Answer Culture , Management style
Page 3
TQM-4
Question Strategic quality management means :-
Correct Answer Strategic Improvement
Your Answer Strategic Improvement
True/False
Question Quality approach is potential failure prevention.
Correct Answer True
Your Answer True

Question Current quality concept is :-
Correct Answer Continual improvement , Prevention of defect
Your Answer Continual improvement , Prevention of defect

Question Quality objectives :-
Correct Answer Must be relevant to function within
organization
Your Answer Must be relevant to function within organization
Select The Blank

Question Quality means________.
Correct Answer Fitness for use
Your Answer Fitness for use
Select The Blank

True/False
Question Documents in company are controlled by Management
Representatives.
Correct Answer True
Your Answer True

Question ISO - 140001 is built upon which of the following?
Page 4
TQM-4
Question The inviromental policy must :-
Correct Answer Be Relevant to the activity , Comply with
legislation , Commits to prevention of pollution
Your Answer Be Relevant to the activity , Comply with
legislation , Commits to prevention of pollution
True/False
Question Value is for which customer is paying.
Correct Answer True
Your Answer True

Question Creativity means :-
Correct Answer Unlimited thinking
Your Answer Unlimited thinking

Question Control chart shows :-
Correct Answer Performance of process
Your Answer Performance of process

Question Tally chart is :-
Correct Answer Data collection tool
Your Answer Data collection tool
Match The Following

The quality manual have Level 3 The sequence of operation &

interaction of process
The process mapping The sequence of operation & interaction of

process Schematic flow diagram
The role of management in QMS To provide resources To provide

resources
Activities outsourced Vendors are assessed based on predetermined

criteria Vendors are assessed based on predetermined criteria
Page 5
TQM-4

Correct Answer Detection of Defect , Action on only detected
defect
Your Answer Detection of Defect , Action on only detected defect

Question The process evaluation is to identify :-
Correct Answer Potential improvement in process
Your Answer Potential improvement in process
Match The Following

Dr. Deming believes To prevent defect To prevent defect
Ishikawa development Cause & effect diagram Cause & effect diagram
Type of variation is due to Common causes Common causes
Crosby's objective of quality Histogram Histogram
Select The Blank

Question Working together for excellence is ________.

Question Bar chart is :-
Correct Answer Frequency Distribution tool , Data analysis
tool
Your Answer Frequency Distribution tool , Data analysis tool ,
Process control tool

Question Continual improvement is in :-
Correct Answer Enviromental objective , Audit Result ,
Corrective action
Your Answer Enviromental objective , Audit Result , Corrective
action
Page 6
TQM-4
True/False
Question The performance of process is in controlled condition
then it is called process at managed level.
Your Answer True
True/False
Question Failure mode & effect Analysis is prevention tool.
Correct Answer True
Your Answer True

Question Quality circle encourage :-
Correct Answer Participation , Tem work
Your Answer Participation , Tem work

Question Analysis is :-
Correct Answer Process monitoring tool
Your Answer Data analysis tool

Question In quality Assurance primary concern is:-
Correct Answer Co-ordination
Your Answer Co-ordination
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Match The Following

Small Savings Chit Funds Chit Funds

Gen.Insurance NICo of India Ltd. NICo of India Ltd.

Life Insurance LIC of India Ltd LIC of India Ltd

Mutual fund UTI UTI

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CRR Primary reserve Primary reserve

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Match The Following

Corporates RIL, HPCL RIL, HPCL

NGOs CASP, CRY, PLAN CASP, CRY, PLAN

DFI IDBI, IFCI, ICICI IDBI, IFCI, ICICI

PSUs NTPC, NHPC, Coal India NTPC, NHPC, Coal India

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