International_Finance_6 by nirajng

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									7d245fd2-07f2-4b5c-8910-32560503d524.doc

LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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 One which has been derived from other fundamental instruments Multiple Choice Multiple Answer Question With reference to ECB, fund raising activity includes :Correct Answer Floating rate notes, bonds, debentures , Syndicate loans, issue of shares Your Answer Syndicate loans, issue of shares , Floating rate notes, bonds, debentures 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 Match The Following Question Correct Answer Your Answer Merchant banking Portfolio management Note issuing and underwrting facility Securitization Issue of debt in the form of tradeable security Issue of debt in the form of tradeable security Prime borrower Highest credit rating Venture capital Traditional banking service Loans and cash credit against security Highest credit rating

Select The Blank Question A Bill of exchange payable 45 days from date of shipment, is a means of ________ from seller to the buyer. Correct Answer Credit Your Answer Intimation of shipment 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 Multiple Choice Single Answer Question Who introduced the worlds first exchange traded currency futures? Correct Answer Chicago Mercantile Exchange Your Answer Bretton woods Agreement Multiple Choice Single Answer Question Name the members of Exchange Banks association :Correct Answer Foreign Banks at Bombay, Calcutta, Delhi, Madras, Amritsar, Your Answer All banks at any business center True/False Question In developed markets, speculators play important role in determining the trend of currency rates. Correct Answer True Your Answer True

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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 Multiple Choice Single Answer Question Under which contracts the seller pays the import duty for the buyer? Correct Answer DDP Your Answer DDU Multiple Choice Multiple Answer Question In which cases can a Resident Individual in India acquire foreign securities without prior approval? Correct Answer Gift from a person outside India, or Inheritance from a person resident in or outside India , Security issued under Cashless employees stock option scheme Your Answer Gift from a person outside India, or Inheritance from a person resident in or outside India , Security issued under Cashless employees stock option scheme Multiple Choice Single Answer Question The document formulated by the borrower of syndicated loan, and the arranger, which contains details of individual shares etc of co-lenders is known as :Correct Answer Memorandum of information Your Answer Memorandum of information 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 Match The Following Question Correct Answer Your Answer LastStage Form a single currency Form a single currency The First stage in the Europeand and Monetary Union (EMU) Free movement of capital in EC Free movement of capital in EC Stage II in EMU Establishment of European Monetary Institute Establishment of European Monetary Institute Stage III in EMU Members to meet the convergence criteria and fix the exchange rates Members to meet the convergence criteria and fix the exchange rates

Multiple Choice Single Answer Question Value date means the date on which :Correct Answer Delivery of both the currencies will be made Your Answer Delivery of both the currencies will be made True/False Question Till August 1994 India was following the Indirect Methodof Rate quotation. Correct Answer False Your Answer True

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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 A Specific date forward contract can be booked so as to be :Correct Answer Payable on a specific date of the calendar month Your Answer Payable on a specific date of the calendar month True/False Question ECGC offers isurance protection to Indian exporters againt payment risks. Correct Answer True Your Answer True 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 Multiple Answer Question Which document is used for transportation by air, rail, road, marine? Correct Answer Multimodal transport document , Combined Transport document Your Answer Multimodal transport document , Combined Transport document True/False Question Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument. Correct Answer False Your Answer False Select The Blank Question After the second world war many countries adopted the route of ________ to give facelift to sagging economies. Correct Answer Devaluation of their currencies Your Answer Devaluation of their currencies 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 Insolvency of the buyer , Risk of strikes due to which commercial activity is haulted 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 of Gifts of GBP 5000 per year per donor 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

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Multiple Choice Multiple Answer Question Name the services provided by 'Reuter 3000' in forex market:Correct Answer Quotation of forex rates, interest rates , Electronic broking by matching the rates Your Answer Quotation of forex rates, interest rates , Calculate and quote rates for transactions Multiple Choice Single Answer Question What do you understand by a forex option? Correct Answer Right and not the obligation to take or give future delivery of an agreed quantity at certain price Your Answer Right and not the obligation to take or give future delivery of an agreed quantity at certain price 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 Financial management is complex process for Correct Answer Companies which have international trade Your Answer Companies which have international trade Select The Blank Question The ________is a Floating rate index for swaps. Correct Answer US Commercial paper rate Your Answer US Commercial paper rate True/False Question Services of a Paying bank are taken when currencies of exporters country or the importers country is not involved in the transaction. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question Which two countries were included to convert the group of five into the group of seven? Correct Answer Canada , Italy Your Answer Canada , Italy Multiple Choice Multiple Answer Question Which factors influence the valuation of cash flows? Correct Answer Incomplete capital market , Availability of projkect specific concessional finance, Your Answer Availability of projkect specific concessional finance, , volatility of exchange rates 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 False True/False Question Sandby credis are introduced by US Banks because they were not permitted to issue on demand guarantees. Correct Answer True Your Answer True

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Select The Blank Question The international liquidity problem was tackled effectively by a reserve asset known as ________. Correct Answer Special drawing right Your Answer Floating exchange 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 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 Thursday if it is a working day at both the centers Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :Correct Answer Monday Your Answer Monday Select The Blank Question During the fixed rate exchange system prevailing in India, the intervention currency was ________. Correct Answer Sterling Pound Your Answer Indian Rupees Multiple Choice Single Answer Question Inhow many groups are INCOTERMS classified? Correct Answer Four Your Answer Four Multiple Choice Single Answer Question The Direct Investment abroad through share swap arrangement under normal route is permitted in a :Correct Answer JV/WOS Your Answer Holding Co Multiple Choice Single Answer Question Samuraibonds are Correct Answer Foreign yen bonds issued to non resident entities in Japanese Market Your Answer Foreign yen bonds issued to non resident entities in Japanese Market Select The Blank Question The large flow of money internationally was caused primarily by the oil price hikes engineered by ________. Correct Answer OPEC countries Your Answer European Countries True/False Question Proposal for Investment abroa by Indian not falling under automatic route are submitted to Exchange Control Department of RBI. Correct Answer True Your Answer True

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7d245fd2-07f2-4b5c-8910-32560503d524.doc

LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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 One which has been derived from other fundamental instruments Multiple Choice Multiple Answer Question With reference to ECB, fund raising activity includes :Correct Answer Floating rate notes, bonds, debentures , Syndicate loans, issue of shares Your Answer Syndicate loans, issue of shares , Floating rate notes, bonds, debentures 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 Match The Following Question Correct Answer Your Answer Merchant banking Portfolio management Note issuing and underwrting facility Securitization Issue of debt in the form of tradeable security Issue of debt in the form of tradeable security Prime borrower Highest credit rating Venture capital Traditional banking service Loans and cash credit against security Highest credit rating

Select The Blank Question A Bill of exchange payable 45 days from date of shipment, is a means of ________ from seller to the buyer. Correct Answer Credit Your Answer Intimation of shipment 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 Multiple Choice Single Answer Question Who introduced the worlds first exchange traded currency futures? Correct Answer Chicago Mercantile Exchange Your Answer Bretton woods Agreement Multiple Choice Single Answer Question Name the members of Exchange Banks association :Correct Answer Foreign Banks at Bombay, Calcutta, Delhi, Madras, Amritsar, Your Answer All banks at any business center True/False Question In developed markets, speculators play important role in determining the trend of currency rates. Correct Answer True Your Answer True

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7d245fd2-07f2-4b5c-8910-32560503d524.doc

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 Multiple Choice Single Answer Question Under which contracts the seller pays the import duty for the buyer? Correct Answer DDP Your Answer DDU Multiple Choice Multiple Answer Question In which cases can a Resident Individual in India acquire foreign securities without prior approval? Correct Answer Gift from a person outside India, or Inheritance from a person resident in or outside India , Security issued under Cashless employees stock option scheme Your Answer Gift from a person outside India, or Inheritance from a person resident in or outside India , Security issued under Cashless employees stock option scheme Multiple Choice Single Answer Question The document formulated by the borrower of syndicated loan, and the arranger, which contains details of individual shares etc of co-lenders is known as :Correct Answer Memorandum of information Your Answer Memorandum of information 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 Match The Following Question Correct Answer Your Answer LastStage Form a single currency Form a single currency The First stage in the Europeand and Monetary Union (EMU) Free movement of capital in EC Free movement of capital in EC Stage II in EMU Establishment of European Monetary Institute Establishment of European Monetary Institute Stage III in EMU Members to meet the convergence criteria and fix the exchange rates Members to meet the convergence criteria and fix the exchange rates

Multiple Choice Single Answer Question Value date means the date on which :Correct Answer Delivery of both the currencies will be made Your Answer Delivery of both the currencies will be made True/False Question Till August 1994 India was following the Indirect Methodof Rate quotation. Correct Answer False Your Answer True

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7d245fd2-07f2-4b5c-8910-32560503d524.doc

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 A Specific date forward contract can be booked so as to be :Correct Answer Payable on a specific date of the calendar month Your Answer Payable on a specific date of the calendar month True/False Question ECGC offers isurance protection to Indian exporters againt payment risks. Correct Answer True Your Answer True 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 Multiple Answer Question Which document is used for transportation by air, rail, road, marine? Correct Answer Multimodal transport document , Combined Transport document Your Answer Multimodal transport document , Combined Transport document True/False Question Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument. Correct Answer False Your Answer False Select The Blank Question After the second world war many countries adopted the route of ________ to give facelift to sagging economies. Correct Answer Devaluation of their currencies Your Answer Devaluation of their currencies 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 Insolvency of the buyer , Risk of strikes due to which commercial activity is haulted 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 of Gifts of GBP 5000 per year per donor 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

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7d245fd2-07f2-4b5c-8910-32560503d524.doc

Multiple Choice Multiple Answer Question Name the services provided by 'Reuter 3000' in forex market:Correct Answer Quotation of forex rates, interest rates , Electronic broking by matching the rates Your Answer Quotation of forex rates, interest rates , Calculate and quote rates for transactions Multiple Choice Single Answer Question What do you understand by a forex option? Correct Answer Right and not the obligation to take or give future delivery of an agreed quantity at certain price Your Answer Right and not the obligation to take or give future delivery of an agreed quantity at certain price 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 Financial management is complex process for Correct Answer Companies which have international trade Your Answer Companies which have international trade Select The Blank Question The ________is a Floating rate index for swaps. Correct Answer US Commercial paper rate Your Answer US Commercial paper rate True/False Question Services of a Paying bank are taken when currencies of exporters country or the importers country is not involved in the transaction. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question Which two countries were included to convert the group of five into the group of seven? Correct Answer Canada , Italy Your Answer Canada , Italy Multiple Choice Multiple Answer Question Which factors influence the valuation of cash flows? Correct Answer Incomplete capital market , Availability of projkect specific concessional finance, Your Answer Availability of projkect specific concessional finance, , volatility of exchange rates 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 False True/False Question Sandby credis are introduced by US Banks because they were not permitted to issue on demand guarantees. Correct Answer True Your Answer True

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7d245fd2-07f2-4b5c-8910-32560503d524.doc

Select The Blank Question The international liquidity problem was tackled effectively by a reserve asset known as ________. Correct Answer Special drawing right Your Answer Floating exchange 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 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 Thursday if it is a working day at both the centers Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :Correct Answer Monday Your Answer Monday Select The Blank Question During the fixed rate exchange system prevailing in India, the intervention currency was ________. Correct Answer Sterling Pound Your Answer Indian Rupees Multiple Choice Single Answer Question Inhow many groups are INCOTERMS classified? Correct Answer Four Your Answer Four Multiple Choice Single Answer Question The Direct Investment abroad through share swap arrangement under normal route is permitted in a :Correct Answer JV/WOS Your Answer Holding Co Multiple Choice Single Answer Question Samuraibonds are Correct Answer Foreign yen bonds issued to non resident entities in Japanese Market Your Answer Foreign yen bonds issued to non resident entities in Japanese Market Select The Blank Question The large flow of money internationally was caused primarily by the oil price hikes engineered by ________. Correct Answer OPEC countries Your Answer European Countries True/False Question Proposal for Investment abroa by Indian not falling under automatic route are submitted to Exchange Control Department of RBI. Correct Answer True Your Answer True

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