International_Finance_4

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					Multiple Choice Multiple Answer Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market Your Answer Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates Select The Blank Question Correct Answer Your Answer

________ is the agency of ICC which deals with the maritime crime. International Maritime Bureau International Maritime Bureau

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

True/False Question Correct Answer Your Answer

Cross currency forward contract is not meaningful if original contract is in Rupees to USD True True

Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option? Correct Answer Your Answer The exercise or strike price, the amount , The expiration date and time, the method of payment The exercise or strike price, the amount , The expiration date and time, the method of payment , The Market report of the exchange which trades the option

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

Match The Following

Question Intolerable risk Country risk analysis Stock market analysis Weightages %

Correct Answer Drop the investment project Cost of evluation does not justify analysis Banks are ahead Factors' values

Your Answer Drop the investment project Cost of evluation does not justify analysis Factors' values 100% of total

Select The Blank Question Correct Answer Your Answer

Global capital market can be understood from the study of ________. Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country

Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :Correct Answer Monday Your Answer Monday

Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer Other managed Floating Your Answer Pegged to Single currency

Match The Following Question Maturity of future Note issuance facility Bearer security issued in currency other than that of the country of issue Margin on future

Correct Answer

Your Answer

Time when actual commodity Last date of exercising option is delivered Euronotes Eurobonds Euronotes Eurobonds

Peformance bond or security Peformance bond or security deposit deposit

True/False

Question Correct Answer Your Answer

Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument. False False

True/False Question

Correct Answer Your Answer

The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos. True True

Multiple Choice Multiple Answer Question What are margins, with reference to futures market? Correct Answer Your Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts

Multiple Choice Single Answer Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer USD 1 trillion Your Answer USD 1 trillion

Multiple Choice Single Answer Question NIF is basically an agreement :Correct Answer Your Answer By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers Which enables the investor to market the same in the secondary market

Multiple Choice Single Answer Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion Your Answer USD 275 Billion

Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad

Your Answer

Preshipment credit up to six months for construction and turnkey projects abroad

Select The Blank Question Correct Answer Your Answer

Over the years ________has been the most widely accepted currency in international capital market. American Dollar American Dollar

Select The Blank Question Correct Answer Your Answer

As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily. Economies Currencies

Multiple Choice Single Answer Question Which currency is traded in one leg of about 70% of the world's transactions? Correct Answer US Dollar Your Answer US Dollar

Select The Blank Question Correct Answer Your Answer

________ is the acid test for events to be included in country risk. Control by Government' Recurrence

Select The Blank Question Correct Answer Your Answer

The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________. Brussels Brussels

Multiple Choice Single Answer Question What is Risk Syndication facility? Correct Answer Your Answer Sharing of risk of non payment by supplier Sharing risk of Non payment by the Syndicate of Banks giving loans

True/False

Question Correct Answer Your Answer

If ERD > IRD hen exporter should availa Rupee finance True True

Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country 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

Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them

Your Answer

True/False Question Correct Answer Your Answer

Funding Options in domestic yen market are Futures, FRAs, Call and put options. True True

True/False Question Correct Answer Your Answer

There is no difference between CIP and CIF contracts except the mode of transportation. True True

Multiple Choice Single Answer Question Financial management is complex process for Correct Answer Your Answer Companies which have international trade Companies which have international trade

Select The Blank Question

When an Indian Company earns at least 50% of its average

Correct Answer Your Answer

turnover from a particular activity then that activity is considered as ________. Core activity Primary activity

Select The Blank Question Correct Answer Your Answer

A Credit can be a confirmed credit only if it is also ________. An Irrevocable credit An Irrevocable credit

True/False Question Correct Answer Your Answer

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

Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs? Correct Answer USD 1=Rs 50.5000 Your Answer USD 1=Rs 50.5000

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

Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer Your Answer Which are convertible , Which have liquidity confirmed in Euro market operations Which are convertible , Which have liquidity confirmed in Euro market operations , Which have greater intrinsic value

Multiple Choice Multiple Answer Question What are the functions of Asian Development Bank? Correct Answer Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market

Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue

Select The Blank Question

Correct Answer Your Answer

Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Euro Commercial Papers Euro Commercial Papers

Multiple Choice Single Answer Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones Your Answer To weed out unviable projects and rank profitable ones

Multiple Choice Single Answer Question Examples of hedge are: Correct Answer Your Answer Buy when you are having short position Buy when you are having short position

Multiple Choice Multiple Answer Question What is the effect of cross currency option on the customer? Correct Answer Your Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies

Select The Blank Question Correct Answer Your Answer

Forward margin makes a currency cheaper then the currency is at ________. Discount Discount

Multiple Choice Single Answer Question Why does a person need protection from unfavourable movement of exchange rate?

Correct Answer Your Answer

Unfavourable fluctuations in exchange rate can wipe out the normal business profit Unfavourable fluctuations in exchange rate can wipe out the normal business profit

Multiple Choice Single Answer Question The capital market is said to be volatile when Correct Answer Your Answer Prices of capital market instruments change and are expected to change drastically Prices of capital market instruments change and are expected to change drastically

True/False Question Correct Answer Your Answer

JV means Joint venture and WOS means World of Security. False False

Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Your Answer True/False Question Correct Answer Your Answer True/False Question Correct Answer Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue

Out of 15 member countries in European Union 12 countries commiteed themselves for a single currency. False False

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

Select The Blank Question Correct Answer Your Answer

A Credit can be a confirmed credit only if it is also ________. An Irrevocable credit An Irrevocable credit

Match The Following Question Intolerable risk Country risk analysis Stock market analysis Weightages %

Correct Answer

Your Answer

Drop the investment project Drop the investment project Cost of evluation does not justify analysis Banks are ahead Factors' values Cost of evluation does not justify analysis Banks are ahead Factors' values

Select The Blank Question Correct Answer Your Answer

Over the years ________has been the most widely accepted currency in international capital market. American Dollar American Dollar

Multiple Choice Single Answer Question What is the meaning of a country risk? Correct Answer Your Answer Risk of events in a particular country which may cause loss to a person dealing with that country Risk of events in a particular country which may cause loss to a person dealing with that country

Multiple Choice Multiple Answer Question Which common details will be available in any bill of Lading? Correct Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment Your Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment Multiple Choice Single Answer Question What help does EXIM Bank provide under the scheme 'Direct Financial assistance to exporters'? Correct Answer Funds are provided under deferred payment terms to Indian exporter for credit to foreign buyer

Your Answer

Funds are provided under deferred payment terms to Indian exporter for credit to foreign buyer

Match The Following Question PP Form Health Certificate Certificate of Inspection Certifiate of Origin

Correct Answer Export Declaration form Fumigation certificate As per importers requirement Export Promotion Council

Your Answer Export Declaration form Fumigation certificate As per importers requirement Export Promotion Council

Select The Blank Question

Correct Answer Your Answer

Even after liberalisation of exchange controls, the Euro sterling market remained volatile because of uncertainties in UK and gyrations of sterling against major ________ countries OECD OECD

Multiple Choice Single Answer Question How many INCOTERMS are there in "Departure" Group? Correct Answer Your Answer One Two

Multiple Choice Single Answer Question What is a bill of lading? Correct Answer Your Answer Transport document representing movement of goods by water. Transport document representing movement of goods by water.

True/False Question Correct Answer Your Answer

The American Dollar market comprises of the domestic segment of USD the offshore segment of USD. True True

Select The Blank Question

The creditworthiness of the futures seller and the futures buyer is ________ because of the presence of the Futures

exchange. Correct Answer Your Answer Irrelevant Irrelevant

Multiple Choice Single Answer Question What was the collective assessment of International financial market about the country risk of many cnuntries in the last decade? Correct Answer Whatever it was, was disastrously wrong. Your Answer Whatever it was, was disastrously wrong.

Multiple Choice Multiple Answer Question How is the entry into any conuntry's money market or capital market is restricted? Correct Answer Because of different tax systems , Because of different credit standards Your Answer Because of different tax systems , Because of different credit standards True/False Question Correct Answer Your Answer

Till August 1994 India was following the Indirect Methodof Rate quotation. False True

Select The Blank Question Correct Answer Your Answer

In Indian interbank market forward rates are generally quoted on the basis of ________. Calendar month Calendar month

Select The Blank Question Correct Answer Your Answer

Rupee was liberalised on ________ account in 1993, and on current account in 1994. Trade Trade

Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer Other managed Floating

Your Answer

Other managed Floating

Multiple Choice Multiple Answer Question Which of these are considered as miscellaneous documents? Correct Answer Packing list , Weight certificate Your Answer Packing list , Weight certificate

True/False Question Correct Answer Your Answer

Funding Options in domestic yen market are Futures, FRAs, Call and put options. True True

Select The Blank Question Correct Answer Your Answer

ECGC provides cover to an Indian contractor for construction work abroad under ________. Construction works policy Construction works policy

Multiple Choice Single Answer Question Equity can be raised internationallly by a company through :Correct Answer Fund raising, underwriting, hedging , arbitration operations Your Answer Fund raising, underwriting, hedging , arbitration operations

Multiple Choice Single Answer Question How many Countries participated in the third survey on Foreign Exchange, coordinated by BIS in 1992? Correct Answer 26 Your Answer 26

True/False Question Correct Answer Your Answer

In red clause credit some clauses are printed in Red ink. True True

True/False Question

Prior approval of RBI is needed for payment of all imports.

Correct Answer Your Answer

False True

Multiple Choice Multiple Answer Question The factors which affect the performance of an option are:Correct Answer Your Answer Underlying asset price , Time before expiration, rate of interest Underlying asset price , Time before expiration, rate of interest

Multiple Choice Single Answer Question What is the immediate cause for the growth of futures and options in the last two decades? Correct Answer Increase in volatile trading conditions Your Answer Management of external risk

Select The Blank Question

Correct Answer Your Answer

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

Select The Blank Question Correct Answer Your Answer

To make the export more competitive and remunerative, the Indian Govt extends ________ facility. Cash Incentives Advance against cash incentives

Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent Multiple Choice Multiple Answer Question External Commercial Debt market :Correct Answer Prevails in Domestic market of foreign country , Prevails in offshore markets

Your Answer

Prevails in Domestic market of foreign country , Prevails in offshore markets

Multiple Choice Single Answer Question Financial management is complex process for Correct Answer Your Answer Companies which have international trade Companies which have international trade

Multiple Choice Multiple Answer Question What do you understand by 'Foreign Exchange Risk'? Correct Answer The change in value of currency alters the home currency value of an asset , liability, , The change in value of currency alters the home currency value of profit, loss, or future cash flows The change in value of currency alters the home currency value of an asset , liability, , The change in value of currency alters the home currency value of profit, loss, or future cash flows , Certainty of an event which would happen in favour of the importer/ exporter

Your Answer

Multiple Choice Single Answer Question For a spot transaction carried out on Tuesday, where both centers have holiday on Wednesday, currencies will be exchanged on :Correct Answer Thursday if it is a working day at both the centers Your Answer Friday

Multiple Choice Single Answer Question Which details about forward contracts do the Exchange Controls verify ? Correct Answer Particulars of cancellation of forward cover for the equivalent of USD 500,000 Your Answer Particulars of cancellation of forward cover for the equivalent of USD 500,000 True/False Question

Correct Answer Your Answer

In the forward rate quotations between two currencies, when one currency is at discount the other currency is at premium. True True

Multiple Choice Multiple Answer Question Internationally only those currencies are in demand

Correct Answer Your Answer

Which are convertible , Which have liquidity confirmed in Euro market operations Which are convertible , Which have liquidity confirmed in Euro market operations

Select The Blank Question Correct Answer Your Answer

A Bill of exchange payable 45 days from date of shipment, is a means of ________ from seller to the buyer. Credit Credit

Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad Your Answer Preshipment credit beyond six months for construction and turnkey projects abroad Select The Blank Question Correct Answer Your Answer

Global capital market can be understood from the study of ________. Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country

True/False Question Correct Answer Your Answer

Import finance is nomally available at rates of interest cheaper than domestic finance rates. False False

Multiple Choice Multiple Answer Question Major s in NIF are :Correct Answer Your Answer Commercial Banks , Non banking Finance companies , Insurance Companies Commercial Banks , Non banking Finance companies

Select The Blank Question Correct Answer Your Answer

In mid 1992 ________ rejected the ratification of Maastricht treaty Denmark Denmark

True/False Question

Correct Answer Your Answer

Indian companies are now allowed to freely invest abroad up to $1.5 million, raised through GDE or EEFC without prior permission from RBI. False True

Multiple Choice Multiple Answer Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market Your Answer Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates Select The Blank Question ________ is the agency of ICC which deals with the maritime crime. Correct Answer International Maritime Bureau Your Answer International Maritime Bureau

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

True/False Question

Cross currency forward contract is not meaningful if original contract is in Rupees to USD Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option? Correct Answer The exercise or strike price, the amount , The expiration date and time, the method of payment Your Answer The exercise or strike price, the amount , The expiration date and time, the method of payment , The Market report of the exchange which trades the option Multiple Choice Single Answer

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

Question

Match The Following Question Intolerable risk Country risk analysis Stock market analysis Weightages %

Correct Answer Drop the investment project

Your Answer Drop the investment project

Cost of evluation does not Cost of evluation does not justify analysis justify analysis Banks are ahead Factors' values Factors' values 100% of total

Select The Blank Question Global capital market can be understood from the study of ________. Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :Correct Answer Monday Your Answer Monday

Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer Other managed Floating Your Answer Pegged to Single currency

Match The Following Question Maturity of future Note issuance facility

Correct Answer Time when actual commodity is delivered Euronotes

Your Answer Last date of exercising option Euronotes

Bearer security issued in Eurobonds currency other than that of the country of issue Margin on future Peformance bond or security deposit

Eurobonds

Peformance bond or security deposit

True/False Question

Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument. Correct Answer False Your Answer False

True/False Question

The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question What are margins, with reference to futures market? Correct Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Your Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Multiple Choice Single Answer Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer USD 1 trillion Your Answer USD 1 trillion

Multiple Choice Single Answer Question NIF is basically an agreement :Correct Answer By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers Your Answer Which enables the investor to market the same in the secondary market Multiple Choice Single Answer Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion

Your Answer

USD 275 Billion

Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad Your Answer Preshipment credit up to six months for construction and turnkey projects abroad Select The Blank Question Over the years ________has been the most widely accepted currency in international capital market. Correct Answer American Dollar Your Answer American Dollar

Select The Blank Question As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily. Correct Answer Economies Your Answer Currencies

Multiple Choice Single Answer Question Which currency is traded in one leg of about 70% of the world's transactions? Correct Answer US Dollar Your Answer US Dollar

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

Select The Blank Question The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________. Correct Answer Brussels Your Answer Brussels

Multiple Choice Single Answer

Question

What is Risk Syndication facility?

Correct Answer Sharing of risk of non payment by supplier Your Answer Sharing risk of Non payment by the Syndicate of Banks giving loans

True/False Question

If ERD > IRD hen exporter should availa Rupee finance

Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Your Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them True/False Question

Funding Options in domestic yen market are Futures, FRAs, Call and put options. Correct Answer True Your Answer True

True/False Question

There is no difference between CIP and CIF contracts except the mode of transportation. Correct Answer True Your Answer True

Multiple Choice Single Answer

Question

Financial management is complex process for

Correct Answer Companies which have international trade Your Answer Companies which have international trade

Select The Blank Question When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________. Correct Answer Core activity Your Answer Primary activity

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

True/False Question

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

Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs? Correct Answer USD 1=Rs 50.5000 Your Answer USD 1=Rs 50.5000

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

Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer Which are convertible , Which have liquidity confirmed in Euro market operations

Your Answer

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

Multiple Choice Multiple Answer Question What are the functions of Asian Development Bank? Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Select The Blank Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Correct Answer Euro Commercial Papers Your Answer Euro Commercial Papers

Multiple Choice Single Answer Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones Your Answer To weed out unviable projects and rank profitable ones

Multiple Choice Single Answer Question Examples of hedge are: Correct Answer Buy when you are having short position Your Answer Buy when you are having short position

Multiple Choice Multiple Answer Question What is the effect of cross currency option on the customer? Correct Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies Your Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies Select The Blank

Question

Forward margin makes a currency cheaper then the currency is at ________. Correct Answer Discount Your Answer Discount

Multiple Choice Single Answer Question Why does a person need protection from unfavourable movement of exchange rate? Correct Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Your Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Multiple Choice Single Answer Question The capital market is said to be volatile when Correct Answer Prices of capital market instruments change and are expected to change drastically Your Answer Prices of capital market instruments change and are expected to change drastically True/False Question

JV means Joint venture and WOS means World of Security.

Correct Answer False Your Answer False

Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed

Multiple Choice Multiple Answer Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market Your Answer Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates Select The Blank Question ________ is the agency of ICC which deals with the maritime crime.

Correct Answer International Maritime Bureau Your Answer International Maritime Bureau

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

True/False Question

Cross currency forward contract is not meaningful if original contract is in Rupees to USD Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option? Correct Answer The exercise or strike price, the amount , The expiration date and time, the method of payment Your Answer The exercise or strike price, the amount , The expiration date and time, the method of payment , The Market report of the exchange which trades the option Multiple Choice Single Answer Question Which is the most actively traded currency in the international market today? Correct Answer US Dollar Your Answer US Dollar

Match The Following Question Intolerable risk Country risk analysis Stock market analysis Weightages %

Correct Answer Drop the investment project Cost of evluation does not justify analysis Banks are ahead Factors' values

Your Answer Drop the investment project Cost of evluation does not justify analysis Factors' values 100% of total

Select The Blank

Question

Global capital market can be understood from the study of ________.

Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :Correct Answer Monday Your Answer Monday

Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer Other managed Floating Your Answer Pegged to Single currency

Match The Following Question Maturity of future Note issuance facility Bearer security issued in currency other than that of the country of issue Margin on future

Correct Answer

Your Answer

Time when actual commodity Last date of exercising option is delivered Euronotes Eurobonds Euronotes Eurobonds

Peformance bond or security Peformance bond or security deposit deposit

True/False Question

Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument. Correct Answer False Your Answer False

True/False Question

The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question What are margins, with reference to futures market? Correct Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Your Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Multiple Choice Single Answer Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer USD 1 trillion Your Answer USD 1 trillion

Multiple Choice Single Answer Question NIF is basically an agreement :Correct Answer By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers Your Answer Which enables the investor to market the same in the secondary market

Multiple Choice Single Answer Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion Your Answer USD 275 Billion

Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad Your Answer Preshipment credit up to six months for construction and turnkey projects abroad Select The Blank Question Over the years ________has been the most widely accepted currency in international capital market. Correct Answer American Dollar Your Answer American Dollar

Select The Blank Question As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily.

Correct Answer Economies Your Answer Currencies

Multiple Choice Single Answer Question Which currency is traded in one leg of about 70% of the world's transactions? Correct Answer US Dollar Your Answer US Dollar

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

Select The Blank Question The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________. Correct Answer Brussels Your Answer Brussels

Multiple Choice Single Answer Question What is Risk Syndication facility? Correct Answer Sharing of risk of non payment by supplier Your Answer Sharing risk of Non payment by the Syndicate of Banks giving loans

True/False Question

If ERD > IRD hen exporter should availa Rupee finance

Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Your Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country

Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them True/False Question

Funding Options in domestic yen market are Futures, FRAs, Call and put options. Correct Answer True Your Answer True

True/False Question

There is no difference between CIP and CIF contracts except the mode of transportation. Correct Answer True Your Answer True

Multiple Choice Single Answer Question Financial management is complex process for Correct Answer Companies which have international trade Your Answer Companies which have international trade

Select The Blank Question When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________. Correct Answer Core activity Your Answer Primary activity

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

True/False Question

The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total.

Correct Answer False Your Answer False

Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs? Correct Answer USD 1=Rs 50.5000 Your Answer USD 1=Rs 50.5000

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

Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer Which are convertible , Which have liquidity confirmed in Euro market operations Your Answer Which are convertible , Which have liquidity confirmed in Euro market operations , Which have greater intrinsic value Multiple Choice Multiple Answer Question What are the functions of Asian Development Bank? Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Select The Blank Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Correct Answer Euro Commercial Papers Your Answer Euro Commercial Papers

Multiple Choice Single Answer Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones Your Answer To weed out unviable projects and rank profitable ones

Multiple Choice Single Answer Question Examples of hedge are: Correct Answer Buy when you are having short position Your Answer Buy when you are having short position

Multiple Choice Multiple Answer Question What is the effect of cross currency option on the customer? Correct Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies Your Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies Select The Blank Question Forward margin makes a currency cheaper then the currency is at ________. Correct Answer Discount Your Answer Discount

Multiple Choice Single Answer Question Why does a person need protection from unfavourable movement of exchange rate? Correct Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Your Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Multiple Choice Single Answer Question The capital market is said to be volatile when Correct Answer Prices of capital market instruments change and are expected to change drastically Your Answer Prices of capital market instruments change and are expected to change drastically True/False Question

JV means Joint venture and WOS means World of Security.

Correct Answer False

Your Answer

False

Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market Your Answer Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates Select The Blank Question ________ is the agency of ICC which deals with the maritime crime. Correct Answer International Maritime Bureau Your Answer International Maritime Bureau

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

True/False Question

Cross currency forward contract is not meaningful if original contract is in Rupees to USD Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option?

Correct Answer The exercise or strike price, the amount , The expiration date and time, the method of payment Your Answer The exercise or strike price, the amount , The expiration date and time, the method of payment , The Market report of the exchange which trades the option Multiple Choice Single Answer Question Which is the most actively traded currency in the international market today? Correct Answer US Dollar Your Answer US Dollar

Match The Following Question Intolerable risk Country risk analysis Stock market analysis Weightages %

Correct Answer Drop the investment project

Your Answer Drop the investment project

Cost of evluation does not Cost of evluation does not justify analysis justify analysis Banks are ahead Factors' values Factors' values 100% of total

Select The Blank Question Global capital market can be understood from the study of ________. Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :Correct Answer Monday Your Answer Monday

Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer Other managed Floating Your Answer Pegged to Single currency

Match The Following

Question Maturity of future Note issuance facility Bearer security issued in currency other than that of the country of issue Margin on future

Correct Answer Time when actual commodity is delivered Euronotes Eurobonds

Your Answer Last date of exercising option Euronotes Eurobonds

Peformance bond or security deposit

Peformance bond or security deposit

True/False Question

Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument. Correct Answer False Your Answer False

True/False Question

The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question What are margins, with reference to futures market? Correct Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Your Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Multiple Choice Single Answer Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer USD 1 trillion Your Answer USD 1 trillion

Multiple Choice Single Answer Question NIF is basically an agreement :Correct Answer By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers

Your Answer

Which enables the investor to market the same in the secondary market

Multiple Choice Single Answer Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion Your Answer USD 275 Billion

Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad Your Answer Preshipment credit up to six months for construction and turnkey projects abroad Select The Blank Question Over the years ________has been the most widely accepted currency in international capital market. Correct Answer American Dollar Your Answer American Dollar

Select The Blank Question As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily. Correct Answer Economies Your Answer Currencies

Multiple Choice Single Answer Question Which currency is traded in one leg of about 70% of the world's transactions? Correct Answer US Dollar Your Answer US Dollar

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

Select The Blank

Question

The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________. Correct Answer Brussels Your Answer Brussels

Multiple Choice Single Answer Question What is Risk Syndication facility? Correct Answer Sharing of risk of non payment by supplier Your Answer Sharing risk of Non payment by the Syndicate of Banks giving loans

True/False Question

If ERD > IRD hen exporter should availa Rupee finance

Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Your Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them True/False Question

Funding Options in domestic yen market are Futures, FRAs, Call and put options. Correct Answer True Your Answer True

True/False

There is no difference between CIP and CIF contracts except the mode of transportation. Correct Answer True Your Answer True

Question

Multiple Choice Single Answer Question Financial management is complex process for Correct Answer Companies which have international trade Your Answer Companies which have international trade

Select The Blank Question When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________. Correct Answer Core activity Your Answer Primary activity

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

True/False Question

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

Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs? Correct Answer USD 1=Rs 50.5000 Your Answer USD 1=Rs 50.5000

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

Your Answer

Preshipment credit , Post shipment credit , Buyers credit

Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer Which are convertible , Which have liquidity confirmed in Euro market operations Your Answer Which are convertible , Which have liquidity confirmed in Euro market operations , Which have greater intrinsic value Multiple Choice Multiple Answer Question What are the functions of Asian Development Bank? Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Select The Blank Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Correct Answer Euro Commercial Papers Your Answer Euro Commercial Papers

Multiple Choice Single Answer Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones Your Answer To weed out unviable projects and rank profitable ones

Multiple Choice Single Answer Question Examples of hedge are: Correct Answer Buy when you are having short position Your Answer Buy when you are having short position

Multiple Choice Multiple Answer

Question

What is the effect of cross currency option on the customer?

Correct Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies Your Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies Select The Blank Question Forward margin makes a currency cheaper then the currency is at ________. Correct Answer Discount Your Answer Discount

Multiple Choice Single Answer Question Why does a person need protection from unfavourable movement of exchange rate? Correct Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Your Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Multiple Choice Single Answer Question The capital market is said to be volatile when Correct Answer Prices of capital market instruments change and are expected to change drastically Your Answer Prices of capital market instruments change and are expected to change drastically True/False Question

JV means Joint venture and WOS means World of Security.

Correct Answer False Your Answer False

Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False

Integrated branches of Commercial banks handle forex transactions as well as options, swaps, futures, arbitrage operations Correct Answer True Your Answer True

Question

True/False Question

JV means Joint venture and WOS means World of Security.

Correct Answer False Your Answer False

Select The Blank Question The rate of interest on rupee finance for exports is not exceeding ________ less than PLR. Correct Answer 0.025 Your Answer 50 basis points over LIBOR

Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option? Correct Answer The exercise or strike price, the amount , The expiration date and time, the method of payment Your Answer The exercise or strike price, the amount , The expiration date and time, the method of payment Multiple Choice Single Answer Question In the syndicated loan arrangement the borrower has to execute :Correct Answer Single Principal loan agreement Your Answer Single Principal loan agreement

True/False Question

At Least one principal Lender bank is essential for issue of the ADR or GDR. Correct Answer False Your Answer True

Multiple Choice Single Answer Question US financial system is the freest system because Correct Answer Institutions can introduce new products and instuments at the price of their choice.

Your Answer

Institutions can introduce new products and instuments at the price of their choice.

Multiple Choice Single Answer Question In a coupon swap who is called the buyer? Correct Answer One who pays the fixed rate of interest Your Answer One who pays the fixed rate of interest

True/False Question

Till August 1994 India was following the Indirect Methodof Rate quotation. Correct Answer False Your Answer False

Select The Blank Question For setting up joint ventures abroad or equity participation abroad, EXIM bank provides funds under ________ Scheme. Correct Answer Overseas investment facility Your Answer Overseas investment facility

Multiple Choice Single Answer Question Under the automatic route of Direct Investment Abroad, what is the restriction on market purchases? Correct Answer 50% of the net worth of the investing company Your Answer 50% of the net worth of the investing company

Multiple Choice Single Answer Question What are the powers of money changers? Correct Answer Purchase and sell foreign currency notes and travellers cheques Your Answer Purchase and sell foreign currency notes and travellers cheques and also Give export finance

Select The Blank Question Any company involved in foreign exchange transactions is exposed to ________ risk. Correct Answer Currency Your Answer Currency

Multiple Choice Multiple Answer

Question

What are the features of Settlement price ?

Correct Answer Price established by the clearing house at the end of each trading session , It is used to determine the net gain, loss, margin call and next days price limits Your Answer Price established by the clearing house at the end of each trading session , It is used to determine the net gain, loss, margin call and next days price limits Multiple Choice Multiple Answer Question What are the activities of ICC? Correct Answer Aribtration and dispute resolving , Canvass for open trade combat commercial crime Your Answer Aribtration and dispute resolving , Canvass for open trade combat commercial crime , Increased Govt regulation of Business True/False Question

Cause of increase in cost of public issues Underwriting fees , selling commission Correct Answer True Your Answer False

Select The Blank Question The currency swaps used ________. Correct Answer To lower the risk of currency exposure Your Answer To lower the risk of currency exposure

True/False Question

The Option period in the forward contract is at the option of the Banker, hence the bank has to be very conservative in quoting rates. Correct Answer False Your Answer True

Multiple Choice Multiple Answer Question Which factors affect the exchange rates in short time period? Correct Answer Demand and supply, interest rates, inflation, , Sentiment, Speculation Your Answer Demand and supply, interest rates, inflation, , Sentiment, Speculation , GDP,Balance of trade and payment,Unemployment Match The Following

Question Departure Main carriage paid Main carriage unpaid Arrival

Correct Answer EXW CFR FAS DES

Your Answer EXW CFR FAS DES

Multiple Choice Multiple Answer Question Sterling Market is attractive for an international investor because Correct Answer Gilts offer higher attractive margin , Choice of issuing medium term and long term bonds Your Answer Gilts offer higher attractive margin , Choice of issuing medium term and long term bonds , Linking of issues to currency swaps True/False Question

In red clause credit some clauses are printed in Red ink.

Correct Answer True Your Answer False

Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the bid rate for USD? Correct Answer USD 1=Rs 50.5000 Your Answer USD 1=Rs 50.5000

Multiple Choice Single Answer Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones Your Answer To weed out unviable projects and rank profitable ones

Multiple Choice Multiple Answer Question Criteria for investment abroad under automatic route :Correct Answer Activity for investment is core activity of Indian Company. , Total Financial commitment in JV/WOS as per prescribed ceiling Your Answer Activity for investment is core activity of Indian Company. , Total Financial commitment in JV/WOS as per prescribed ceiling Multiple Choice Multiple Answer Question Who can issue the Certificate of Inspection? Correct Answer Export Inspection Council , Person authorised by Importer. Your Answer Export Inspection Council , Person authorised by Importer.

Multiple Choice Single Answer Question Large number of exporters from which country are enjoying the privilege of receiving up front cash from importers in Russia? Correct Answer United Kingdom Your Answer United Kingdom

True/False Question

In developed markets, speculators play important role in determining the trend of currency rates. Correct Answer True Your Answer True

Select The Blank Question In US Capital Market a Company prepares all the necessary documents in advance of the public issue under the facility known as ________. Correct Answer Shelf Registration Your Answer Shelf Registration

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

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

Correct Answer Premium Your Answer Discount

Multiple Choice Multiple Answer Question These are the parties to the documentary credit :Correct Answer Negotiating Bank, advising bank , Reimbursing bank, Confirming bank Your Answer Negotiating Bank, advising bank , Reimbursing bank, Confirming bank Multiple Choice Multiple Answer Question What are the functions of Asian Development Bank? Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Multiple Choice Single Answer Question Fixed, Floating or Limited flexibility are used in the context of Correct Answer Exchange Rates Your Answer Exchange Rates

Select The Blank Question In mid 1992 ________ rejected the ratification of Maastricht treaty Correct Answer Denmark Your Answer UK

Multiple Choice Multiple Answer Question Under the liberalisation through FEMA, what can an AD offer to the clients, without the prior permission of RBI or Government? Correct Answer Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements Your Answer Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements Multiple Choice Single Answer Question To whom is an AD required to report the cancellation of forward contracts? Correct Answer No one at all. Your Answer To Reserve Bank of India, fortnightly

Select The Blank Question ECGC provides cover to an Indian contractor for construction work abroad under ________. Correct Answer Construction works policy Your Answer Export Performance Guarantee

True/False Question

The Negotiating bank examines the documents submitted by the seller and makes payment if they comply the terms and conditions of the LC. Correct Answer True Your Answer True

Multiple Choice Single Answer Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion Your Answer USD 275 Billion

Multiple Choice Multiple Answer Question What are the sources of raising funds for exports? Correct Answer Suppliers credit , Forfaiting Your Answer Suppliers credit , Forfaiting

Select The Blank Question Forward margin makes a currency cheaper then the currency is at ________. Correct Answer Discount Your Answer Discount

Multiple Choice Single Answer Question Name the common forex derivatives :Correct Answer Options, futures Your Answer Options, futures

True/False Question

Country risk analysis is a futile exercise in the background of cost of analysis.

Correct Answer True Your Answer False

Select The Blank Question Even after liberalisation of exchange controls, the Euro sterling market remained volatile because of uncertainties in UK and gyrations of sterling against major ________ countries Correct Answer OECD Your Answer OECD

Match The Following Question Issues linked with LIBOR,LIBID,LIMEAN Issue of bonds without fixed rate of interest, linked to short term interest rate in the global market

Correct Answer FRNs FloatingRate Note

Your Answer FRNs FloatingRate Note

Issue of loans Syndicated Loans internationally,through arranger, underwriter,co manager, for a large amount for sharing risk of lending Equity issues in the foreign markets either as direct investments or portfolio investments. American or Global Depository Receipts

Syndicated Loans

American or Global Depository Receipts

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question Proforma Invoice, Commercial Invoice, Consaular Invoice are which type of documents? Correct Answer Commercial Documents Your Answer Commercial Documents

True/False

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

Multiple Choice Multiple Answer Question Why does a Transaction exposure arise? Correct Answer Trading flows , Dividend or capital flows Your Answer Trading flows , Dividend or capital flows

Multiple Choice Single Answer Question If a dealer of securities is quoting rate as 200-250 then the rate 200 signifies which rate with reference to him? Correct Answer Bid rate Your Answer Bid rate

Select The Blank Question A Documentary credit issued on the strength of another documentary credit is known as ________. Correct Answer Back to Back credit Your Answer Back to Back credit

Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer Which are convertible , Which have liquidity confirmed in Euro market operations Your Answer Which are convertible , Which have liquidity confirmed in Euro market operations True/False Question

Tranche' is a managed issue of securities in smaller denominations. Correct Answer True Your Answer False

True/False Question

Funding Options in domestic yen market are Futures, FRAs, Call and put options. Correct Answer True

Your Answer

True

Select The Blank Question Global capital market can be understood from the study of ________. Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Multiple Choice Multiple Answer Question Which events can lead to materialisation of country risk? Correct Answer Change in Government policies , Change in Government rules and laws Your Answer Change in Government policies , Change in Government rules and laws , Unpredicted Earthquake, Tsunami waves Multiple Choice Multiple Answer Question What is a 'speculator'? Correct Answer Trader who is neither hedger nor arbitragor , He takes risks for profit Your Answer Trader who is neither hedger nor arbitragor , He takes risks for profit Select The Blank Question The major industrial power whose economy was not affected after the II world war was ________. Correct Answer USA Your Answer USA

Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Multiple Choice Multiple Answer Question What do you understand by Commercial Risk? Correct Answer Protracted default by the buyer , Insolvency of the buyer Your Answer Protracted default by the buyer , Insolvency of the buyer

Select The Blank

Question

Legalised invoice is also called ________ invoice.

Correct Answer Visaed Your Answer Visaed

Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :Correct Answer Monday Your Answer Monday

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

Match The Following Question LastStage

Correct Answer Form a single currency

Your Answer Meet in Maastricht in Netherland

The First stage in the Free movement of capital Establish EURO Bank Europeand and Monetary in EC Union (EMU) Stage II in EMU Establishment of European Monetary Institute Members to meet the convergence criteria and fix the exchange rates Establishment of European Monetary Institute Members to meet the convergence criteria and fix the exchange rates

Stage III in EMU

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

True/False Question

An Indian exporting goods to New York receives dollars in New York. Correct Answer True

Your Answer

True

Multiple Choice Multiple Answer Question The factors which affect the performance of an option are:Correct Answer Underlying asset price , Time before expiration, rate of interest Your Answer Underlying asset price , Time before expiration, rate of interest

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

True/False Question

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

Match The Following Question Cancellation of contracts above USD 500000 Forward Purchase contract currency at premium Forward purchase contract currency at discount Exchange margins

Correct Answer ECD

Your Answer ECD

Presume earliest delivery Presume earliest delivery

Presume latest delivery

Presume latest delivery

FEDAI

FEDAI

Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer Other managed Floating Your Answer Other managed Floating

Multiple Choice Multiple Answer

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

Question

Multiple Choice Single Answer Question Who can open an EEFC account? Correct Answer Individuals , firms, companies, resident in India Your Answer Individuals , firms, companies, resident in India

Multiple Choice Single Answer Question Method of advance payment is not disadvantageous to :Correct Answer The seller Your Answer The seller

Multiple Choice Single Answer Question What is the immediate cause for the growth of futures and options in the last two decades? Correct Answer Increase in volatile trading conditions Your Answer Increase in volatile trading conditions

Multiple Choice Single Answer Question What do you mean by a derivative? Correct Answer One which has been derived from other fundamental instruments Your Answer Derived from Mathematical expressions

Multiple Choice Single Answer Question "Currency Snake" Correct Answer Plus or minus movement of exchange rate around the parity rate Your Answer Currency of European Country in the early 70's

True/False Question

Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument. Correct Answer False Your Answer False

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

Multiple Choice Multiple Answer 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 Total Financial commitment in JV/WOS as per prescribed ceiling , Activity for investment is core activity of Indian Co. Select The Blank Question ________ enables bankers to extend purchase, negotiation or discount of export bills. Correct Answer Post shipment credit guarantee Your Answer Post shipment credit guarantee

Multiple Choice Single Answer Question For setting up a joint venture or WOS abroad, Indian banks operating in India need a clearance :Correct Answer Under Banking Regulation Act Your Answer Under Banking Regulation Act

Multiple Choice Single Answer Question Financial management is complex process for Correct Answer Companies which have international trade Your Answer Companies which have international trade

True/False Question

Indian companies are now allowed to freely invest abroad up to $1.5 million, raised through GDE or EEFC without prior permission from RBI. Correct Answer False Your Answer False

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

Terms in an Irrevocable credit can not be alterred at all.

Correct Answer False Your Answer True

Select The Blank Question Position in a currency is said to be ________, when sales equal purchases. Correct Answer Square Your Answer Square

Multiple Choice Multiple Answer Question How is the entry into any conuntry's money market or capital market is restricted? Correct Answer Because of different tax systems , Because of different credit standards Your Answer Because of different tax systems , Because of different credit standards Select The Blank Question The currency notes and coins of individual countries participating in "Euro" have ceased to be a legal tender from ________. Correct Answer 2002 Your Answer 2002

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 ODI

Multiple Choice Single Answer Question Where does the word derivative originate from? Correct Answer Mathematics Your Answer Mathematics

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

Multiple Choice Single Answer Question The financial system of any country consists of Correct Answer Network of commercial banks, domestic and foreign investment banks, NBFCs, etc Your Answer The Central bank, IMF and world bank

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question Association of several scheduled commercial banks for forex business is ________. Correct Answer Foreign Exchange Dealers Association of India Your Answer Foreign Exchange Dealers Association of India

True/False Question

Installment credit is issued for specific quantities of goods to be shipped every week or month. Correct Answer True Your Answer True

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

Select The Blank Question The creditworthiness of the futures seller and the futures buyer is ________ because of the presence of the Futures exchange. Correct Answer Irrelevant Your Answer Irrelevant

Select The Blank

When interest rate changes by 0.05 per cent then it has changed ________ basis points. Correct Answer 50 Your Answer 5

Question

Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer 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

Multiple Choice Multiple Answer 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, , Mr A has choice of selling or not selling silver on his own Multiple Choice Multiple Answer Question Major investors in NIF are :Correct Answer Commercial Banks , Non banking Finance companies , Insurance Companies Your Answer Commercial Banks , Non banking Finance companies , Insurance Companies True/False Question

With the advent of futures and Options there is no need for additional instruments of risk hedging. Correct Answer False Your Answer False

Select The Blank

During the fixed rate exchange system prevailing in India, the intervention currency was ________. Correct Answer Sterling Pound Your Answer USDollar

Question

Multiple Choice Single Answer Question What help does EXIM Bank provide under the scheme 'Direct Financial assistance to exporters'? Correct Answer Funds are provided under deferred payment terms to Indian exporter for credit to foreign buyer Your Answer Funds are provided under deferred payment terms to Indian exporter for credit to foreign buyer Multiple Choice Single Answer Question What is a bill of lading? Correct Answer Transport document representing movement of goods by water. Your Answer Transport document representing movement of goods by water.

Multiple Choice Single Answer Question Which controls are not permitted by IMF? Correct Answer Current account controls Your Answer Exchange controls

Multiple Choice Multiple Answer 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 True/False Question

Yankee bond is issued for domestic borrowers.

Correct Answer False Your Answer True

Multiple Choice Multiple Answer Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market

Your Answer

Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market

True/False Question

An AD can book a forward contract for a part of the amount of Sale Contract Correct Answer True Your Answer False

True/False Question

Sterling FRNs are issued in Europe, USA ,Asia

Correct Answer False Your Answer True

Match The Following Question Bond basis to money market basis

Correct Answer Bond basisx 360/365

Your Answer Bond basisx 360/365 Floating for floating rate currency swap Fixed rate Money market basis x 365/360

3 months LIBOR +2 % PA Floating rate 15% P.A. Money market basis to bond basis Fixed rate Money market basis x 365/360

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

Multiple Choice Single Answer Question In case of syndication of loans the amount of loan and currency is finalised by :Correct Answer Borrower Your Answer Underwriter of the syndicate

Multiple Choice Single Answer Question European currency Unit

Correct Answer Basket of Currencies of members of EMS Your Answer Basket of Currencies of members of EMS

Select The Blank Question The counter party in option is ________. Correct Answer The exchange Your Answer Trustworthy corporation, who hedges the risks of market uncertainty

Multiple Choice Single Answer Question A Spot Transaction between Japanese Yen and Sterling carried out on Friday in Singapore, the settlement day will be Correct Answer Following Tuesday if it is a working day in all the three centers Your Answer Following Tuesday if it is a working day in all the three centers

Select The Blank Question EEFC account holder is allowed to have ________ facility. Correct Answer Cheque book and nomination Your Answer Cheque book and nomination

Multiple Choice Multiple Answer Question A Usance bill of exchange may be drawn in 2 ways. Which are they? Correct Answer Documents against payment , Documents against acceptance Your Answer Documents against payment , Documents against acceptance

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

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

Multiple Choice Multiple Answer

Question

What are the main causes of fluctuations in Exchange rates?

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

Import finance is nomally available at rates of interest cheaper than domestic finance rates. Correct Answer False Your Answer False

Multiple Choice Single Answer Question A weight list, a packing list used in international trade are which type of documents? Correct Answer Operational Documents Your Answer Operational Documents

Multiple Choice Multiple Answer Question What do you understand by 'Foreign Exchange Risk'? Correct Answer The change in value of currency alters the home currency value of an asset , liability, , The change in value of currency alters the home currency value of profit, loss, or future cash flows Your Answer The change in value of currency alters the home currency value of an asset , liability, , The change in value of currency alters the home currency value of profit, loss, or future cash flows Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad Your Answer Preshipment credit beyond six months for construction and turnkey projects abroad Multiple Choice Single Answer

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 is caution listed by RBI

True/False Question

Naked position is when investor does not hedge against market risk. Correct Answer True Your Answer True

Multiple Choice Multiple Answer 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

Multiple Choice Single Answer Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer USD 1 trillion Your Answer USD 1 trillion

Match The Following Question European option Out of money In the money American option

Correct Answer On or after maturity Loss Profit Before maturity

Your Answer On or after maturity Profit Loss Before maturity

Select The Blank Question The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________. Correct Answer Brussels Your Answer Brussels

True/False

PP Form is required when exports are made to any country by post parcel on value payable basis. Correct Answer False Your Answer False

Question

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

Multiple Choice Single Answer Question How many Countries participated in the third survey on Foreign Exchange, coordinated by BIS in 1992? Correct Answer 26 Your Answer 26

Select The Blank Question Indian Co. intending to make investment under Automatic route needs to submit form ________ to RBI with enclosures. Correct Answer ODA Your Answer ODA

Multiple Choice Single Answer Question In International trade, Advance payment means :Correct Answer Providing up front cash Your Answer Providing up front cash

True/False Question

If ERD > IRD hen exporter should availa Rupee finance

Correct Answer True Your Answer True

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question Which functions does the Bill of Lading

serve? Correct Answer It is a document of title to goods. , It is receipt of goods Your Answer It is a document of title to goods. , It is receipt of goods Multiple Choice Single Answer Question A Bank quotes interest rate of 9.50/10.00 for six months dollar deposit, here the bid rate is :Correct Answer 9.50% P.A. Your Answer 9.50% P.A. Multiple Choice Single Answer Question What is Sovereign Risk? Correct Answer Risk of lending to the government of a country Your Answer Risk of lending to the government of a country Multiple Choice Single Answer Question How does ICC help poor countries? Correct Answer Attract Foreign Direct investments togeather with UNCTAD Your Answer Attract Foreign Direct investments togeather with UNCTAD Multiple Choice Multiple Answer Question As per BIS, recovery from the recent crisis in global capital market was mainly due to Correct Answer Rapid and appropriate policy response in US and other countries , Increase in Foreign Direct Investments , free flow of credit Your Answer Rapid and appropriate policy response in US and other countries , Increase in Foreign Direct Investments , free flow of credit

True/False Question Out of 15 member countries in European Union 12 countries commiteed themselves for a single currency. Correct Answer False Your Answer True True/False Question In red clause credit some clauses are printed in Red ink. Correct Answer True Your Answer True True/False Question Transfer of funds for investment abroad is allowed freely. Correct Answer True Your Answer False Select The Blank Question EEFC account holder is allowed to have ________ facility. Correct Answer Cheque book and nomination Your Answer Credit card, safe custody, safe deposit locker without any fee Select The Blank Question Fixed interest rate Eurobond without the option to convert to equity is known as ________. Correct Answer Straight Debt Your Answer Interest rate swap True/False Question An Indian importing goods from USA pays dollars in India. Correct Answer False Your Answer True

Match The Following Question Correct Answer Your Answer PP Form Export Declaration form Export Declaration form Health Certificate Fumigation certificate Export Declaration form Certificate of Inspection As per importers requirement Export Declaration form Certifiate of Origin Export Promotion Council Export Declaration form

Multiple Choice Multiple Answer Question For issuing a Documentary credit The applicant is required to provide to the issuing bank details about Correct Answer The purchase-sales contract, the mode of payment, the tenor of payment , The documents required, the names of authorities who would issue the documents Your Answer The purchase-sales contract, the mode of payment, the tenor of payment , The track record of the buyer and seller Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Your Answer It is an undertaking given on behalf of a certain person to another person in different

country , It is a stamped agreement and is not valid unless it is signed by the issuer True/False Question CFR = FOB plus freight paid by seller + insurance paid by seller. Correct Answer False Your Answer True Select The Blank Question Even after 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 Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ? Correct Answer Buffer Stock Facility Your Answer Supplemental Reserve Policy Multiple Choice Multiple Answer Question What are the sources of raising funds for exports? Correct Answer Suppliers credit , Forfaiting Your Answer Suppliers credit , Forfaiting , Buyers credit , Foreign currency or Rupee finance

True/False Question Normally the forward contracts are booked for making huge profits. Correct Answer False Your Answer False True/False Question Head office of ICC is in Paris because of its First President Eliance Clementel. Correct Answer True Your Answer False Select The Blank Question A ________ Bill of lading does not specify the terms and conditions of carriage. Correct Answer Short Form Your Answer Short Form Multiple Choice Single Answer Question What is the volume of the world's total speculative transactions? Correct Answer Roughly 90 % of the total turnover Your Answer 70% of the total turnover True/False Question Till August 1994 India was following the Indirect Methodof Rate quotation. Correct Answer False Your Answer False Select The Blank Question For setting up joint ventures abroad or equity participation abroad, EXIM bank provides funds under ________ Scheme. Correct Answer Overseas investment facility Your Answer Overseas investment facility

Multiple Choice Single Answer Question Mr P has exported goods in May 2005 and is expecting payment of Euro 25000 by the last week of Sept 2005. Give details of the forward contract he can book :Correct Answer He can book a sale contract any time from May 2005 till Mid Sept 2005, for Euro 25000 or less, for maturity last week of Sept. Your Answer He can book a contract for Forward Purchase, any time from May 2005 till Mid Sept 2005, for Euro 25000 or less, for maturity last week of Sept. Select The Blank Question In US Capital Market a Company prepares all the necessary documents in advance of the public issue under the facility known as ________. Correct Answer Shelf Registration Your Answer Shell Registration Multiple Choice Multiple Answer Question Which common details will be available in any bill of Lading? Correct Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment Your Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment , The name of the vessel , The date of transportation and contract of transportation Select The Blank Question Under the ________ standard the Country's Central Bank promised to buy back the currency at certain rate of Gold. Correct Answer Gold Your Answer Interest

Select The Blank Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Correct Answer Euro Commercial Papers Your Answer ADRs Select The Blank Question The type of trade where a country sells orange juice in return for cars is known as ________. Correct Answer Counter Trade Your Answer Non money trade Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Your Answer Payment to EOUs in India for services rendered by them , Payment of Gifts of GBP 5000 per year per donor Multiple Choice Multiple Answer Question Under the liberalisation through FEMA, what can an AD offer to the clients, without the prior permission of RBI or Government? Correct Answer Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements Your Answer Caps and collars, and forward rate agreements , Good and competitive exchange rates and cross currency rates Multiple Choice Multiple Answer Question Sterling Market is attractive for an

international investor because Correct Answer Gilts offer higher attractive margin , Choice of issuing medium term and long term bonds Your Answer Choice of issuing medium term and long term bonds , Less controls and less formalities to be completed , Linking of issues to currency swaps Multiple Choice Single Answer Question Under which contracts the seller pays the import duty for the buyer? Correct Answer DDP Your Answer DDP True/False Question PP Form is required when exports are made to any country by post parcel on value payable basis. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question What were the immediate causes of converting the group of 5 into group of 7 and convene their meeting in late 1985? Correct Answer Many Industries in USA had become uncompetitive with imports , In USA the Trade protectionnism had increased Your Answer Many Industries in USA had become uncompetitive with imports , In USA the Trade protectionnism had increased , The heads of G5 insisted to have a meeting , Failure of IMF to control the exchange rates Multiple Choice Single Answer Question What are the powers of money changers? Correct Answer Purchase and sell foreign currency notes and travellers cheques

Your Answer Purchase and sell foreign currency notes and travellers cheques, give import and export finance Multiple Choice Single Answer Question Who can open an EEFC account? Correct Answer Individuals , firms, companies, resident in India Your Answer Individuals , firms, companies, resident in India Multiple Choice Single Answer Question What is the role of ICC towards WTO? Correct Answer To provide world business recommendations to WTO Your Answer To further the cause of WTO Match The Following Question Correct Answer Your Answer Swap price Difference in prices of two legs of buying and selling Quoting rate for both buying and selling a currency Euro Market Market in Euro currencies Market in Euro currencies Making market Quoting rate for both buying and selling a currency Difference in prices of two legs of buying and selling Spread Price difference between bid and offer Maket of 'Euro'

Select The Blank Question Position in a currency is said to be ________, when sales equal purchases.

Correct Answer Square Your Answer Awkward Select The Blank Question Hotels and Airline companies are allowed to receive payments in Indian rupees from foreign tourist without insisiting on ________. Correct Answer Encashment certificate Your Answer Encashment certificate Multiple Choice Multiple Answer Question Why is Bill of Exchange a Quasi Negotiable Instrument? Correct Answer It represents title to goods , It is issued under Sale of Goods act Your Answer It represents title to goods , It is issued under Transportation act , It is issued under Bill of exchange act Multiple Choice Single Answer Question Which details about forward contracts do the Exchange Controls verify ? Correct Answer Particulars of cancellation of forward cover for the equivalent of USD 500,000 Your Answer Details of all contracts booked and cancelled beyond a specified limit Multiple Choice Single Answer Question In the context of International economy ,the period between 1920s and 1930s is known as Correct Answer Great Depression Your Answer Great Depression Multiple Choice Multiple Answer Question What do you understand by Commercial Risk? Correct Answer Protracted default by the buyer ,

Insolvency of the buyer Your Answer Protracted default by the buyer , Insolvency of the buyer

Chapter – 1 – Introduction to international capital markets Euro currency ; domestic markets ; US Japan ; Switzerland ; UK ; Australia ; Canada ; European ; centers in ECU; Chapter – 2 – International Finance Markets - the U.S. dollar Market ; The U.S. Dollar Market ; The Japanese Yen Market ; The Sterling Market ; The Euro Market Has Been discussed in the next chapter ; Recent development in international Finance Markets ; Chapter – 3 – International Monetary and Financial System The country’s central ban agreed to buy back their currency at a certain rate of gold; Melting down of gold was freely allowed ; There was unrestricted movement of gold (i.e. import and / or export) The total money supply in the country was determined by the quantum of gold reserves in the country The international monetary fund ; quotas ; funding facilities ; regular facilities tranche policies ; restore Tranche credit Tranche ; extended arrangement (extended fund facility (EEF) ; Standard Arrangement (enlarged Arrears Policy) Special facilities (compensatory and contingency financing facility (CCFF) Buffer stock Financing Facility ; Supplemental Reserve Policy (SRP); Reserve Tranche ; Credit Tranche ; Stand by arrangement ; Extended arrangement or extended fund facilities (EFF) special facilities ; CCFF ; Buffer stock financing Facility (BSFF) ; Supplemental resources facility (SRF) Enhanced structural adjustment facility (ESAF) The fixed exchange rate system Problems faced by the fixed exchange rate system ; failure of fixed rate system ; the European monetary system (EMS) ; Economic and monetary union ; Recent developments ; post – Maastricht developments; emergence of EURO The group of seven ; special drawing rights (SDRS) ; The liquidity problems (SDRS) ; the world bank group ; the world bank; international development agency (IDA) ; international finance corporation (IFC) ; The multinational investment Guarantee Agency (MIGA) Chapter – 4 – External commercial borrowing – country ; company ; Equity ; Fund raising ; underwriting ; hedging ; arbitraging ; note issuance facility ; Mechanism and documentation ; syndicated loans ; floating rate notes ; Flip – Flop FRN ; MIS – Mich FRN ; MINI Max FRN ; Capped FRNs, Perpetual FRNs; VRN structured FRNs; Terms and conditions of FRN Ero Commercial paper (ECP) ; ADRs and GDRs; GDR – Global depositary Receipts ; The roles of different parties involved in launching of GDR GDR – Global Depositary Receipts ; The roles of different parties involved in launching of GDR steps involved in issuance of GDR are as follows Pricing and Closing ; costs ; Advantages & Disadvantages of external commercial borrowing

1 5 – 10

13 – 14

15 – 17

18 – 19 20 – 23 24 – 27 31 – 35 36 – 39

40 – 41

Chapter – 5 – Documents used in International Trade ; Regulatory requirements ; operational requirements ; commercial documents ; financial documents transport documents ; risk covering documents ; official / regulatory documents ; miscellaneous documents ; Commercial documents ; proforma invoice ; commercial invoice ; consular invoice customs invoice ; legalized invoice ; combined certificate of origin and value ; financial documents ; bill of exchange ; The second of the same tenor and date unpaid ; the first of the same tenor and date unpaid ; or similar words ; sight B/E; Tenor ; time B/E; DP Basis ; document against Payment Basis ; Documents against Acceptance Basis Transport documents; bill of lading ; received for shipment bill of lading ; on board bill of lading ; Short form bill of lading ; long form bill of lading clean bill of lading ; claused bill of lading ; through bill of lading ; straight bill of lading ; charter party Bill of lading ; container bill of lading container bill of lading ; combined transport B/L or Mulit Modal B/L lash bill of lading house bill of lading ; Airway bill ; Air consignment Note ; House Air way bill ; Postal Receipt ; Courier /Expected delivery service ; multimodal transport document ; risk covering documents ; insurance policy ; Insurance cover note ; official documents export declaration forms ; export certificate; Certificate of origin ; Miscellaneous documents ; packing list ; weight certificate ; certificate of analysis and quality ; certificate of inspection ; health certificate ; phytosanitary / Radiation / Fumigation Chapter 6 – Methods of payment ; advance payment ; bill for collection ; open account ; barter trade ; bank guarantee ; letter of credit (L / C) Seller wants buyer wants ; parties to a documentary credit ; applicant issuing bank advising ; confirming bank beneficiary ; negotiating bank ; reimbursing bank Types of letters of credit ; revocal letter of credit ; irrevocable letter of credit ; confimed irrevocable letter of credit ; transferable l / c revolving letter of credit ; credit available by installments; back to back letter of credit ; anticipatory credit or red clause letter of credit ; green clause letter of credit ; deferred payment letter of credit ; standby letter of credit ; flow chart of export transaction under letter of credit Flow chart of export transaction under letter of credit ; various steps in the transaction are as under ; steps no. description Chapter 7 – Export / Import Finance ; - Part I import finance ; import financing through trust receipts / import loans ; import financing through issuing l/ c or bank guarantee ; part II – Export Finance Timely ; adequate ; cheaper on liberal terms ; sources for raising finance ; own funds ; 2 friends and relative ; 3 advance payment from buyer ; 4 Trade credit from suppliers 5 banks and financial institutions ; pre-shipment credit (P.C) Post shipment credit ; advance agains t cash incentives / duty draw back ; forfeiting ; rediscounting of export bills abroad ; buyer’s credit ; supplier’s credit Chapter – 8 – Procedure in connection with foreign investment in India – Seciton – I foreign direct investment ; FERA ; the practice at which a company can issue shares to non residents ; fema ; esop ; section II – Foreign technical collaboration ; General Hotel & Tourism Related Industries ; procedure for granting approval; I / We hereby certify that ; Documentation ; Standard conditions attached to approval for technology agreement ; no objection ; the agreement shall be subject to Indian laws: Section – III – Portfolio investment ; explanation ; the regulations regarding portfolio

43 – 46

47 – 49

50 – 53

55 – 57

61 – 66

67 – 69

70 – 71 73 – 74

75 -76 79 – 83 84 – 88

89 - 92

investments by NRIs / PIOs are as under ; NRI / PIOs ; Section – IV – Other investments ; Section V – procedure for opening branch / project / Liaison office ; Chapter – 9 – Direct investment outside India – overseas investment division TDR ADR GDR the criteria for investment under the automatic route are as under ; JV/WOS; ODA; The schemes for overseas investment by partnership firms ; criteria for overseas investment by a registered partnership firm under the automatic route ; The procedure to be followed by a partnership firm for making investment under the automatic route ; the procedure to be followed by partnership firms which are not eligible under the automatic route ; restrictions for setting up of a second generation company ; resident individual India can acquire foreign securities without prior approval in the following cases ; provided that ; WOS Chapter – 10 – Taxation ; Bilateral relief Unilateral relief ; for the purpose of this provision Part – 2 Forex risk management and hedging techniques Chapter – 1 Foreign exchange markets – The international Market ; survey were ; the market ; the participants ; information and communication system ; the payment system ; the foreign exchange market in India Chapter – 2 – Exchange Rates – Exchange rage quotes ; direct and indirect rates ; direct rates ; indirect rates; spot and forward rates value rate; ready or cash ; value today ; TOM; spot ; forwards; glossary of market terms; Foreign exchange risks ; transactions exposure ; translation exposure ; economic exposure; Translation – moving towards a consensus ; economic exposure ; an overview ; scenario exchange rages in India ; Inward remittances export encashment of foreign currency travelers cheques ; encashment of foreign currency notes; outward remittances ; imports ; issuing foreign currency travelers cheques issuing foreign currency notes ; Type of transaction exchange rate nomenclature ; Factors affecting movement of exchange rates ; summary Chapter – 3 – Forward contracts - Forward cover for merchants – forward purchase cover forward sales contract - repayment of foreign currency loans – period of delivery – cross currency booking (sale / Purchase ) ; utilization of the forward cover ; cancellation ; calculation of exchange rates for forward contracts Cancellation ; early delivery and rollover of forward contracts ; forward sale contracts ; forward purchase contract ; early delivery ; rollover charges Chapter 4 – Options and Futures – History and development ; recent trends ; key features of options and futures ; premium ; maturity or expiration date ; exercise ; in the money ; at the money ; out of the money American option European option ; underlying asset price time before expiration ; underlying asset price ; time before expiration the rate of interest volatility Pricing and analysis ; pricing of options ; underlying asset price ; exercise price ; options and futures products today ; interest rate options ; foreign exchange options and futures ; equity linked options ; commodity linked futures and options Chapter – 5 - Swaps What are swaps ; interest rate swaps ; lowering financial cost ; hedge exposure to interest rate risk ; restructuring the debt in the balance sheet ; amortizing and accreting swaps ; forward swaps ; Reversible swaps ; basis swaps Currency swaps ; lowering funding cost ; entering restricted capital markets ; reducing currency risk ; supply demand imbalances in the markets ; amortizing currency swaps ;

95 – 99

100 – 102

105 – 106 109 – 114 117 – 123

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128 – 129 131 – 137

138 – 141 143- 147

148 – 152 155 – 157

158 – 161

accreting currency swaps ; floating – for floating rate currency swaps ; interest payments ; asset swaps PART 3 – AGENCIES INVOLVED IN INTERNATIONAL TRADE Chapter – 1 – Export import Bank of India ; Functions of Exim Bank ; the exim bank performs the following functions ; incidental functions ; operations programmes ; direct financial assistance to exporters ; consultancy and technology services ; pre-shipment credit ; facilities for export – oriented units ; overseas investment facility buyer credit facilities for deemed exports small scale industry export bills rediscounting; the latest new schemes in operation since 1992 are the following Chapter – 2 – Reserve Bank of India Exchange controls in India – RBI as the exchange control authority ; Authorized dealers (Ads) ; Money changers ; other receipts ; payment for imports ; other payments ; delegation to Ads; securities ; foreign currency accounts; liberalization of exchange control Sodhani Committee Recommendations ; Exchange rate management ; Chapter – 3 – Foreign Exchange dealers association of India ; Uniform customs and practice for collection ; Chapter 4 – International chamber of commerce – ICC – WCF – IBCC – WCF Chapter – 5 – Export credit guarantee corporation of India ; ECGC; need for export credit insurance ; credit insurance policies ; scr or standard policy ; turnover policy ; small exporter policy ; specific shipment policy (short term); buyer wise policy ; specific policy for supply contract insurance cover for buyer’s credit and line of credit Services Policy ; construction works policy ; maturity factoring ; Guarantees to banks ; packing credit guarantee ; export production finance guarantee ; post – shipment credit guarantee ; export finance guarantee ; export performance guarantee; export finance (overseas lending ) Guarantee Part – 4 – Miscellaneous Chapter 1 – Exchange Earner’s foreign currency (EEFC) Status holder exporter ; individual professional ; others; permissible credits ; permissible debits ; Chapter 2 – Country Risk ; Quantifying country risk ; A comprehensive example ; use of country risk ; assessment ; Chapter 3 – International capital Budgeting - The Basic Frame work Chapter 4 – Incoterms – Group E departure EXW ; Group F Main carriage unpaid ; FAS ; FOB ; CFR ; CIF ; CPT ; CIP ; Group C; Group D ; Arrival DAF ; DES ; DEQ; DDU CTD / MTO ; DDP ; delivered duty paid (CTD / MTO) Chapter – 5 – Actuals ; arbitrage ; bankers’ acceptance bond (BAS) ; Bearer Bond ; Bid rate ; Bond ; Bull; call option ; caps ; cash commodity ; cash market ; cedel ; certificate of deposit (CD) class of option ; closing price ; commission ; commercial paper (CP) ; contract specifications ; convertible bond ; coupon ; cover; delivery ; delivery month ; equity ; equity swaps ; equity collar ; Eurobond ; Euro clear ; euro commercial paper; euro –currency ; Exercise price ; expiration date; floating rate note ; fundamental Analysis ; futures contract hedge ; Hybrid ; Interest Rate swap; Intermediation ; Intrinsic Value ; Libor ; Long margin ; margin call maturity naked position ; note issuance facility (NIF) Option ; overbought ; oversold ; physical market ; position ; premium purchaser ; put option ; settlement price short ; speculator ; strike price ; straight debt tap ; technical analysis tranche ; tombstone volatility ; volume ; withholding tax ; yankee bond ;

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174 – 177 179 – 180 183 – 183 189 – 190

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199 203 – 204 207- 212 215 – 217

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Chapter – 1 – Introduction to international capital markets
Ero currency market ; Domestic market ; US, Japan Switzerland ; uk, australia canada ; european conters in ECU ; Euro ; Asian doller market ; forex marker SDR ; ECU ; US dollar ; German ; Swiss ; Japanees ; France ; Canada ; Australia; Chaper - 2 - International financial Markets - The U.S.Dollar Market ; pricing ; federal reservice board; curency ; central bank of US ; The Japanese Yen Market ; Mof; Long Term Prime Rate ; 1970 japanese The Sterling Market ; 20th 19th century 1979 ; OECD Organization for economic co-operation & development EMS Exchange rate Mechanism; FRN ; Bulldog; the EURO Market has been discussed in the nex chapter Recent development in international financial markets ; septer 11 enron LtCN (Long term capital Management Brazil china and mexico; 1990 ; 1980 ; severe tests financial system; securitization forces banks ; attractive to browwerw; legal issues flexibility ; financial market development segement of ; swaps cash flow ; roject related; gain access to international ; marketability ; new financing techniques;

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Chapter – 3 – International Monetary and Financial System
1945 ; 1944 ; intenrational world Bank for reconstruciton and development; second world war was european ; IMF International Monetary Fund; Gold standard first world war The country's Central Bank agreed to buy back their currency at a certain rate of gold; melting down of gold was freely allowed There was unrestricted movement of gold (I.e. import and / export The total money supply in the country was determined by the quantum of gold reserves in the country 1870 ; 1914 ; 1821 ; 1834 ; 1870 ; European countries gold standard in 1933 ; 1930 International Monetary Co-operation ; IBRD ; IMF ; popularly known as world bank IMF ; the international monetary fund 1945 ; 1971 ; 25 years ; aims SDR ((special drawing rights ) 25% 1960 ; 1963 ; Gross domestic product; 5 years ; SDR 146 bn to SDR 212 ; 45% ; 1998 ; Two parts Funding Facilities ; Regular Facilities ; Special facilities ; restore tranche credit tranche ; compensatory and contingency financing facility (CCFF) ; Extended arrangement (Extended Fund Facility EEF) ; Buffer stock Financing Facility ; Standard Arrangement (Enlarged Arrears Policy ) ; Supplemental Reserve Policy (Supplemental Reserve Policy (SRP Reserve Tranche ; Credit Tranches ; Stand - By Arrangement Extended arrangement or extended fund facilities (EFF) Special Facilities ; CCFF ; Buffer Stock Financing Facility ; BSFF ; Supplemental Resource Facility (SRF) ; 1997 Enhance Structural Adjustment Facility (ESAF) ; The fixed exchange rate system US dollars 35 ounce of gold Problem faced by the fixed exchange rate system ; 1960 ; value apprehension ; delay in adjustment failure of fixed rate system ; the european monetary system (EMS) European Community Currency Snake ; 1973 ; EMS EC ECU European Currency Unit ; SDR ; ERM ; DM ; matrix german bundesbank EM ; PST ; ERM ; Economic and monetary Union ;

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