1.

2.
3.
4.

SPOT : Settlement of funds takes place on the second working day

If spot GBP is 1.6000, and 1 month forward as 1.6050, then GBP is Compounded
The interest factor is the basic factor in arriving at the forward rate, in a perfect market.
The date of settlement of funds is known as value date. (credited into Nostro account on 10 and
message received by our bank on 11th what is value date. 11th

5. Problem based on Excess of assets over the liabilities (Long position: The buying of a security such as a
stock, commodity or currency, with the expectation that the asset will rise in value.)
6. Who prescribes guidelines and rules of the game in forex market operations, merchant rates, quotations
etc. FEDAI

7. For retirement of import bill : 1) TT Buying 2) TT Selling 3) Bill buying rate 4) non
8. Cross rate problem : GBP/USD & USD/INR combination.
9. Problem on Bill due date + usance period 30 days. Due date is 17 Feb in exam answer is none of
the above.
10. The risk of failure of the counter party during the course of settlement due to the time zone
differences between the two currencies to be exchanged Answer: Herstatt risk.
11. To trigger the limit or say maximum loss limit for adverse movement of rates. Stop loss limit
12. Mumbai branch of abc bank maintaining an USD account with New York branch of xyz bank. In
the books of abc Mumbai branch NOSTRO account
13. In Problem one straight question for VOSTRO account.
14. In same problem on question on mirror account. (reconciliation of entries in the nostro account
in abc bank Mumbai books.)
15. TARGET facilitates receipts and payments of funds across the EURO Zone on RTGS system.
16. If a person abroad want to send money speedily he will use 1) SWIFT 2) RTGS 3) NEFT 4) PAPER
DD.
17. Which is wrong statement for OCB
1) Predominantly owned by NRI
2) Owner ship of NRIs should be minimum 60%
3) The facilities for investment into India, granted to OCBs were almost similar to those granted
to individual NRI. (3 is the Answer: Because now not allowed from 16.09.2003)
18) A is an Indian origin person married a foreigner B. Got 2 sons M & N. On M married a oman lady
f, N is doctor settled in Pakistan by marring G.
1ST question) B can open NRI account jointly with A
2nd question) M is an NRI
3rd question) G cannot open NRI account as she is a Pakistani.
19) UCPDC-600 all are irrevocable LC
20) Back to Back LC : on the strength of export LC.
21) The importer id required to submit Bill of entry, evidencing import of good into India.
22) Ecgc classification - 7
23) The ultimate responsibility for designing and implementation of ICAAP lies with 1) banks board
of directors 2) RBI 3) FEDAI

24) Who is the nodal agency of EMF EXIM Bank

25) By using interest rate swaps, forward rate agreements between 2 currencies, using cross
currency or financial futures. Interest Rate Risk is mitigated
26) running ac facility gives Embedded option risk
27) LC discount had default risk which leads to funding risk
28) long duration bonds are more Sensitive
29) prepayment of loans Embedded option risk
30) how may diamond dollar accounts an importer can maintain 5
31) CBLO is issued by CCIL
32) Not a constituent part of tire ii capital innovative perpetual debt instruments
33) If the daily volatility of the stock is .02 % what is it 10 day volatility