Learning Confirmation

You have completed your quiz attempt. You have scored 0 point(s).

Question Results
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(skipped)

1. Violation of FEMA provisions is a criminal offence.

TRUE
FALSE

Score0of 1
(skipped)

2. Exchange control refers to restriction on imports and exports.

TRUE
FALSE

Score0of 1
(skipped)

3. The correspondent relationship between banks is also known as agency

arrangement.
TRUE

FALSE

Score0of 1
(skipped)

4. The practice of exchange control is unique to India.

TRUE
FALSE

Score0of 1
(skipped)

5. Example of prohibited foreign exchange transaction is the remittance

out of lottery winnings.
TRUE

FALSE

Learning Confirmation

You have completed your quiz attempt. You have scored 0 point(s).

Question Results
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(skipped)

1. Foreign exchange markets are closed on Saturdays.

TRUE

FALSE
Score0of 1
(skipped)

2. The euro is the most traded currency in foreign exchange markets.

TRUE
FALSE

Score0of 1
(skipped)

3. In the pure form of arbitraging the operator has no investment.

TRUE

FALSE
Score0of 1
(skipped)

4. Buying and selling transactions are always viewed from the bank's
perspective.
TRUE

FALSE
Score0of 1
(skipped)

5. A tom transaction is deliverable on the same day.

TRUE
FALSE

Score0of 1
(skipped)

6. The difference between the bid rate and offer rate in inter-bank
quotation is called spread.
TRUE

FALSE
Score0of 1
(skipped)

7. The largest foreign exchange market in the world is in Singapore.

TRUE
FALSE

Score0of 1
(skipped)

8. European quotations are quotations obtained from the European

markets.
TRUE

FALSE

Score0of 1
(skipped)

9. All inter-bank deals should pass through exchange brokers.

TRUE
FALSE

Score0of 1
(skipped)

10. Exchange rates quoted for a currency by different market

makers may differ, but only to the extent of transaction costs.
TRUE

FALSE

Learning Confirmation

You have completed your quiz attempt. You have scored 0 point(s).

Question Results
Score0of 1
(skipped)

1. A credit in our nostro account will appear as a credit in mirror account.

TRUE

FALSE

Score0of 1
(skipped)

2. Remittances can be made only to centers where bank holds nostro

accounts.
TRUE
FALSE

Score0of 1
(skipped)

3. Inward remittances which are not credited to accounts appear as pending

credit entries in nostro.
TRUE

FALSE
Score0of 1
(skipped)

4. Selling rate is quoted by bank for outward remittance.

TRUE

FALSE
Score0of 1
(skipped)

5. Mirror account is not required for USD nostro accounts.

TRUE
FALSE

Score0of 1
(skipped)

6. Remittance to meet medical expenses of a relative abroad is a capital

account transaction.
TRUE
FALSE

Score0of 1
(skipped)

7. Remittance permitted under Liberalized Remittance Scheme is USD

300000.
TRUE

FALSE

Score0of 1
(skipped)

8. Form A 1 is used for remitting import payments.

TRUE

FALSE
Score0of 1
(skipped)

9. Foreign contributions to an NGO can be received in any number

of bank accounts.
TRUE
FALSE

Score0of 1
(skipped)

10. In FCRA 2010, Chapter IV deals with procedures relating to

receipt of foreign donation and their utilization in bank accounts.

TRUE

FALSE

Learning Confirmation

You have completed your quiz attempt. You have scored 0 point(s).

Question Results
Score0of 1
(skipped)

1. Traders react to news when it breaks rather than waiting for markets to
open.
TRUE

FALSE
Score0of 1
(skipped)

2. Reasons for fluctuations in exchange rates can be pin-pointed.

TRUE
FALSE

Score0of 1
(skipped)

3. Mutual funds can also take position in the derivatives market.

TRUE

FALSE
Score0of 1
(skipped)

4. Banks participate in the capital market and money market.

TRUE

FALSE
Score0of 1
(skipped)

5. London is not a major foreign exchange trading center.

TRUE
FALSE

Learning Confirmation

You have completed your quiz attempt. You have scored 0 point(s).

Question Results
Score0of 1
(skipped)

1. Overdue export bills are crystallized.

TRUE

FALSE
Score0of 1
(skipped)

2. The TT selling rate is applied for payment of import bills.

TRUE
FALSE

Score0of 1
(skipped)

3. The Bill of entry is the ultimate proof of imports.

TRUE

FALSE
Score0of 1
(skipped)

4. Inward remittance for an NRE account comes through SWIFT

message.

TRUE

FALSE
Score0of 1
(skipped)

5. Form A 2 must be furnished by an importer while retiring import bills.

TRUE
FALSE

Learning Confirmation

You have completed your quiz attempt. You have scored 0 point(s).

Question Results
Score0of 1
(skipped)

1. Foreign exchange was considered a rare commodity till

1970s

1990s
2010s
1980s

Score0of 1
(skipped)

2. Transactions prohibited under rule 3 of the foreign exchange management

current account transactions rules 200 does not apply to:
Payment related to `call back services of telephones

Remittance of interest income on funds held in Non Resident Special Rupee A

Payment of commission on exports under Rupee State Credit Route except up

Remittance for study abroad

Score0of 1
(skipped)

3. Remittance out of lottery winning proceeds is:

Permitted under rule 3 of the foreign exchange management current account t

Prohibited under rule 3 of the foreign exchange management current account

Permitted under rule 3 of the foreign exchange management current account t

Prohibited under rule 3 of the foreign exchange management current account
Score0of 1
(skipped)

4. Section ____ of FEMA Act provides control over repatriation of sale

proceeds of exported goods.
4
5

6
Score0of 1
(skipped)

5. As per section 10 of FEMA Act who is not considered as authorized

dealer?
Exchange Broker

Banks
Restricted Money Changers
Full-fledged Money Changers

Learning Confirmation

You have completed your quiz attempt. You have scored 0 point(s).

Question Results
Score0of 1
(skipped)

1. IEC code is issued by RBI.

TRUE
FALSE

Score0of 1
(skipped)

2. Exim policy is valid for 5 years.

TRUE

FALSE
Score0of 1
(skipped)

3. Pre-shipment credit can be extended in foreign currency.

TRUE

FALSE
Score0of 1
(skipped)

4. Restricted items can be imported only under a license.

TRUE

FALSE
Score0of 1
(skipped)

5. For making payments against imports the importer has to apply to the
Bank in form A 2.
TRUE

FALSE

Score0of 1
(skipped)

6. Bill of Entry is the documentary evidence of imports.

TRUE

FALSE
Score0of 1
(skipped)

7. State traded goods can be imported by any trader.

TRUE
FALSE

Score0of 1
(skipped)

8. Import licence will indicate the value on CIF basis.

TRUE

FALSE

Learning Confirmation

You have completed your quiz attempt. You have scored 0 point(s).

Question Results
Score0of 1
(skipped)

1. Settlement of transactions between the banks is easy when there is

accounting relationship.
TRUE

FALSE
Score0of 1
(skipped)

2. Confirming of our L/ C will not be done by our correspondent bank.

TRUE
FALSE

Score0of 1
(skipped)

3. The decision to appoint a bank abroad as correspondent bank depends

on the volume of transactions and direction of flow.
TRUE

FALSE
Score0of 1
(skipped)

4. Unreconciled nostro entries can arise from charges debited by overseas

bank, but not absorbed at our end.
TRUE

FALSE
Score0of 1
(skipped)

5. We do not need the help of correspondent bank in collection of

cheques drawn abroad.
TRUE
FALSE

Learning Confirmation

You have completed your quiz attempt. You have scored 0 point(s).

Question Results
Score0of 1
(skipped)

1. Authorized Dealers of Category II are not members of FEDAI.

TRUE

FALSE
Score0of 1
(skipped)

2. Violation of FEMA provisions is a criminal offence.

TRUE
FALSE

Score0of 1
(skipped)

3. The FIMMDA and FEDAI are not nodal agencies for administering rupee
interest rates and foreign exchange benchmarks in the markets.
TRUE
FALSE

Score0of 1
(skipped)

4. The FEMA has 7 chapters with 49 sections.

TRUE

FALSE
Score0of 1
(skipped)

5. Commercial banks authorized to deal in forex are classified as

Authorized Dealers of Category II.
TRUE
FALSE

Learning Confirmation

You have completed your quiz attempt. You have scored 0 point(s).

Question Results
Score0of 1
(skipped)

1. Authorized Dealers of Category II are not members of FEDAI.

TRUE

FALSE
Score0of 1
(skipped)

2. Violation of FEMA provisions is a criminal offence.

TRUE
FALSE

Score0of 1
(skipped)

3. The FIMMDA and FEDAI are not nodal agencies for administering rupee
interest rates and foreign exchange benchmarks in the markets.
TRUE
FALSE

Score0of 1
(skipped)

4. The FEMA has 7 chapters with 49 sections.

TRUE

FALSE
Score0of 1
(skipped)

5. Commercial banks authorized to deal in forex are classified as

Authorized Dealers of Category II.
TRUE

FALSE

Learning Confirmation

You have completed your quiz attempt. You have scored 0 point(s).

Question Results
Score0of 1
(skipped)

1. Card rates are applicable for transactions in international credit cards.

TRUE
FALSE

Score0of 1
(skipped)

2. Inter-bank rate, based on which merchant rate is quoted is known as base

rate.
TRUE

FALSE
Score0of 1
(skipped)

3. Bill selling rate is used when export bill is dishonored.

TRUE

FALSE

Score0of 1
(skipped)

4. Exchange margin is deducted from inter-bank rate to arrive at the

merchant buying rate.
TRUE

FALSE
Score0of 1
(skipped)

5. The quotation for a merchant transaction is a two-way quotation.

TRUE
FALSE

Score0of 1
(skipped)

6. Interest for transit period is included in bill buying rate

TRUE

FALSE

Score0of 1
(skipped)

7. The rates quoted by a Bank to its trade customers are known as

trading rates.
TRUE
FALSE

Score0of 1
(skipped)

8. TT rate is applied for transactions where nostro account has

already been credited.
TRUE

FALSE

Learning Confirmation
You have completed your quiz attempt. You have scored 0 point(s).

Question Results
Score0of 1
(skipped)

1. Card rates are applicable for transactions in international credit cards.

TRUE

FALSE

Score0of 1
(skipped)

2. The inter-bank rate, based on which merchant sale rate is quoted, is

known as base rate.

TRUE

FALSE
Score0of 1
(skipped)

3. The TT selling rate is used when import bill is retired.

TRUE

FALSE

Score0of 1
(skipped)

4. The exchange margin is added to the inter-bank rate to arrive at the

merchant selling rate.

TRUE

FALSE
Score0of 1
(skipped)

5. The quotation for a merchant sale transaction is a two-way quotation.

TRUE

FALSE

Score0of 1
(skipped)

6. The selling rates quoted by a bank to its trade customers are known
as trading rates

TRUE

FALSE

Score0of 1
(skipped)

7. The TT selling rate is applied to transactions where no handling of

documents is involved

TRUE

FALSE

Learning Confirmation
You have completed your quiz attempt. You have scored 0 point(s).

Question Results
Score0of 1
(skipped)

1. A forward contract provides a perfect hedge for currency exposures.

TRUE

FALSE
Score0of 1
(skipped)

2. OTC derivatives are standardized products.

TRUE

FALSE

Score0of 1
(skipped)

3. A forward contract has attendant credit risk and market risk.

TRUE

FALSE

Score0of 1
(skipped)

4. Four types of derivative instruments are forwards, futures, options and

swaps.

TRUE

FALSE
Score0of 1
(skipped)

5. Under an option forward contract, the option of choosing the delivery

date within the option period rests with the customer.

TRUE

FALSE
Score0of 1
(skipped)

6. On the due date of a forward contract, the customer may opt for spot
rate, if it is favorable to him.

TRUE

FALSE

Score0of 1
(skipped)

7. For a receivable due in December, a forward contract can be

booked to fall due in December only, not earlier or later.

TRUE

FALSE

Score0of 1
(skipped)

8. For an exposure in GBP, the customer may choose to book a

forward contract in Euro.

TRUE

FALSE
Score0of 1
(skipped)

9. An option forward contract is also known as option contract.

TRUE

FALSE

Score0of 1
(skipped)

10. When the customer delivers foreign exchange on the due date,
the transaction is done at the rate agreed.

TRUE

FALSE

Learning Confirmation
You have completed your quiz attempt. You have scored 0 point(s).

Question Results

Score0of 1
(skipped)

1. A customer can approach the bank for cancellation of a forward contract

when the underlying transaction becomes unproductive.

TRUE

FALSE
Score0of 1
(skipped)

2. A forward contract cannot be cancelled before its due date.

TRUE

FALSE

Score0of 1
(skipped)

3. A contract booked can be partly delivered and partly cancelled by the

customer.

TRUE

FALSE
Score0of 1
(skipped)

4. An option forward contract can be cancelled only by the Bank.

TRUE

FALSE

Score0of 1
(skipped)

5. A customers consent is required for cancellation of forward contract

remaining overdue beyond 15 days from the due date.

TRUE

FALSE

Score0of 1
(skipped)

6. Cover for a deferred payment import is available on roll-over basis.

TRUE

FALSE
Score0of 1
(skipped)

7. The charges for automatic cancellation do not include exchange

difference.

TRUE

FALSE

Score0of 1
(skipped)

8. The interest on the outlay of funds is recovered from the customer

in the case of early delivery.

TRUE

FALSE
Score0of 1
(skipped)

9. Interest on outlay of funds is not collected if the amount is less

than Rs.100.

TRUE

FALSE

Score0of 1
(skipped)

10. Rule 8 of FEDAI pertains to automatic cancellation of forward

contracts.

TRUE

FALSE

Learning Confirmation
You have completed your quiz attempt. You have scored 0 point(s).

Question Results
Score0of 1
(skipped)

1. Early extension of forward contract does not involve cancellation and

rebooking.

TRUE

FALSE

Score0of 1
(skipped)

2. Where forward margin is in premium it will be rounded off to the lower

month (or rate at the previous month) to arrive at forward buying rate.

TRUE

FALSE
Score0of 1
(skipped)

3. Re-booking is done at the old contracted rate.

TRUE

FALSE

Score0of 1
(skipped)

4. Cancellation is done at the relevant forward rate.

TRUE

FALSE
Score0of 1
(skipped)

5. FEDAI has clarified that it would not be necessary to load exchange

margins when both the cancellation and re-booking of forward contracts
are undertaken simultaneously.

TRUE

FALSE
Score0of 1
(skipped)

6. Early extension of forward contracts is regulated by SEBI.

TRUE

FALSE

Score0of 1
(skipped)

7. Extension of forward contract on due date is regulated by Forward

Markets Commission.

TRUE

FALSE

Score0of 1
(skipped)

8. Forward contract is an OTC product.

TRUE

FALSE
Score0of 1
(skipped)

9. Request for extension of forward contract before due date should

be rejected.

TRUE

FALSE

Score0of 1
(skipped)

10. Before an overdue forward contract is cancelled by the bank,

the customer may request its extension.

TRUE

FALSE

Learning Confirmation
You have completed your quiz attempt. You have scored 0 point(s).

Question Results
Score0of 1
(skipped)

1. A currency swap involves exchange of interest rate payments and principal

amounts.

TRUE

FALSE
Score0of 1
(skipped)

2. Basis swaps are cash flows where both the legs of the swap are
referenced to the same floating rates.

TRUE

FALSE

Score0of 1
(skipped)

3. The bench mark rate in the case of IRS is already determined.

TRUE

FALSE

Score0of 1
(skipped)

4. Prices of IRS are quoted in terms of floating leg.

TRUE

FALSE

Score0of 1
(skipped)

5. An IRS is a series of FRAs.

True

False
Score0of 1
(skipped)

6. Capital adequacy for the Bank for undertaking swap need not be
calculated.

TRUE

FALSE

Score0of 1
(skipped)

7. In the Indian market Banks are allowed to run a book of swaps

which have an INR leg.

TRUE

FALSE
Score0of 1
(skipped)

8. The IRS cannot be used by scheduled commercial banks for their

own balance sheet management.

TRUE

FALSE

Score0of 1
(skipped)

9. The ISDA with suitable modification is the standard

documentation for IRS.

TRUE

FALSE
Score0of 1
(skipped)

10. There is no currency risk in Differential swaps.

TRUE

FALSE

Learning Confirmation
You have completed your quiz attempt. You have scored 0 point(s).

Question Results
Score0of 1
(skipped)

1. Put option gives the holder the right to sell a specified quantity of underlying
asset.

TRUE

FALSE
Score0of 1
(skipped)

2. Mutual funds are players in the options market.

TRUE

FALSE
Score0of 1
(skipped)

3. CBOE is an abbreviation for Company Board of Options Exchange

TRUE

FALSE

Score0of 1
(skipped)

4. Banks are players in the options market.

TRUE

FALSE
Score0of 1
(skipped)

5. Spot price in addition to the strike price is equal to intrinsic value of an

option.

TRUE

FALSE

Score0of 1
(skipped)

6. The underlying for an option can be physical commodities.

TRUE

FALSE

Score0of 1
(skipped)

7. European option can be exercised on or before the expiration date.

TRUE

FALSE

Score0of 1
(skipped)

8. Open interest refers to the total number of option contracts

outstanding in the market at any given point of time.

TRUE

FALSE
Score0of 1
(skipped)

9. Option casts an obligation on the buyer.

TRUE

FALSE

Score0of 1
(skipped)

10. Options and forward contracts are the same.

TRUE

FALSE

Learning Confirmation
You have completed your quiz attempt. You have scored 0 point(s).

Question Results
Score0of 1
(skipped)

1. The size and maturity of a futures contract is customized.

TRUE

FALSE

Score0of 1
(skipped)

2. The maturity and size of futures contracts are standardized.

TRUE

FALSE
Score0of 1
(skipped)

3. Markets for forward contracts are liquid.

TRUE

FALSE

Score0of 1
(skipped)

4. Futures contracts are liquid.

TRUE

FALSE
Score0of 1
(skipped)

5. Marking to market of outstanding positions at the end of each trading

day is a feature of futures market.

TRUE

FALSE
Score0of 1
(skipped)

6. Either party can walk away unilaterally from the forward contract.

TRUE

FALSE

Score0of 1
(skipped)

7. A forward contract is an OTC agreement.

TRUE

FALSE
Score0of 1
(skipped)

8. Counter-party risk exists in futures contract.

TRUE

FALSE

Score0of 1
(skipped)

9. The physical delivery of futures contract is minimal and positions

are normally closed out by opposite trades.

TRUE

FALSE
Score0of 1
(skipped)

10. Futures are not available on bonds.

TRUE

FALSE

Learning Confirmation
You have completed your quiz attempt. You have scored 0 point(s).

Question Results
Score0of 1
(skipped)

1. Residents of a country do not indulge in economic activities with the

residents of other countries.

TRUE

FALSE

Score0of 1
(skipped)

2. Official reserves account is one of the components of BoP statement.

TRUE

FALSE
Score0of 1
(skipped)

3. India's forex reserves on December 2014 was sufficient to meet 8

months of imports.

TRUE

FALSE

Score0of 1
(skipped)

4. A change in the balance of payments of a country will affect the

exchange rate of its currency.

TRUE

FALSE
Score0of 1
(skipped)

5. Exchange control means exchange restriction only.

TRUE

FALSE

Learning Confirmation
You have completed your quiz attempt. You have scored 0 point(s).

Question Results

Score0of 1
(skipped)

1. ECB is governed by:

Foreign Exchange Regulation Act

Securitization and Reconstruction of Financial Assets and Enforcement of Sec

Debt Recovery Tribunal Act

Foreign Exchange Management Act

Score0of 1
(skipped)

2. Which of the following statements is true for financial institutions and

banks for obtaining ECBs under Automatic Route?

The maximum limit of ECB is US$20 million.

The maximum limit of ECB is US$50 million.

There is no limit for them under Automatic Route.

They cannot access ECB funds under Automatic Route.

Score0of 1
(skipped)

3. Refinancing an existing ECB means:

Obtaining additional finance against security of the existing ECB

Substituting an existing ECB with a fresh ECB

Pre-payment of an existing ECB

Getting a new ECB without disturbing the existing ECB

Score0of 1
(skipped)

4. When Authorized Dealers issue guarantee, LC or LOU for Trade

Credits:

Reporting to RBI is not required up to US$20 million.

Reporting to RBI is to be made in the prescribed proforma.

Reporting is to be made only if the amount exceeds US$5 million.

Reporting is required only if guarantee, LC, or LOU is for unlimited amounts

Score0of 1
(skipped)

5. ECB funds can be used for:

Investment in share market

Investment in projects

Investment in real estate

Investment in agricultural activities

Score0of 1
(skipped)

6. For ECB under Automatic Route, RBI provides:

Loan Registration Number

Loan Pre-payment Permission

Loan Installment Payment Number

Loan Interest Payment Number

Score0of 1
(skipped)

7. For ECB under Approval Route, prior approval should be obtained

from:

Government of India

Reserve Bank of India

Ministry of External Affairs

Ministry of Finance

Score0of 1
(skipped)

8. ECB can be raised only by:

Firms and companies

Multi-national companies

Corporates registered under the Companies Act

Banks
Score0of 1
(skipped)

9. For the purpose of classification, ECB is a part of:

Balance of Payment

Balance of Trade

Current Account

Capital Account

Score0of 1
(skipped)

10. What is the present all-inclusive cost limit for interest payable
on ECBs for more than five years?

LIBOR + 300 basis points

LIBOR + 500 basis points

LIBOR + 350 basis points

There is no ceiling on interest payable

Learning Confirmation
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Question Results
Score0of 1
(skipped)

1. Exporters should submit quarterly progress reports to all the members of

the Working Group.

TRUE

FALSE
Score0of 1
(skipped)

2. Bid bond guarantee does not help contractors to participate in global

tenders.

TRUE

FALSE

Score0of 1
(skipped)

3. Retention Money Guarantee enables the exporter to obtain release of

retained payments from the client.

TRUE

FALSE
Score0of 1
(skipped)

4. Exim Bank is the focal point in Working Group.

TRUE

FALSE
Score0of 1
(skipped)

5. Technology transfer is not classified as project export.

TRUE

FALSE

Learning Confirmation
You have completed your quiz attempt. You have scored 0 point(s).

Question Results
Score0of 1
(skipped)

1. SWIFT cannot be considered as a payment mechanism.

TRUE

FALSE

Score0of 1
(skipped)

2. An LC is a payment mechanism.

TRUE

FALSE
Score0of 1
(skipped)

3. A bid-bond guarantee issued by the bank helps importer of diamonds

participate in the auction abroad.

TRUE

FALSE
Score0of 1
(skipped)

4. Guarantee is a non-fund based limit.

TRUE

FALSE
Score0of 1
(skipped)

5. ECB is a fund based facility from a bank in India.

TRUE

FALSE

Score0of 1
(skipped)

6. Buyer's credit is a form of trade credit.

TRUE

FALSE
Score0of 1
(skipped)

7. Use of ACU mechanism does not save cost for an Indian importer.

TRUE

FALSE

Score0of 1
(skipped)

8. Opening charges and commitment charges are collected by the

bank establishing an import letter of credit.

TRUE

FALSE

Learning Confirmation
You have completed your quiz attempt. You have scored 0 point(s).

Question Results
Score0of 1
(skipped)

1. RBI has fixed a monetary ceiling for use of international credit card for
payment.

TRUE

FALSE

Score0of 1
(skipped)

2. Use of International credit cards for payment in forex in Nepal and Bhutan
is not permitted.

TRUE

FALSE
Score0of 1
(skipped)

3. SWIFT facilitates outward remittance from India.

TRUE

FALSE
Score0of 1
(skipped)

4. Cash advances on international credit card attract finance charges.

TRUE

FALSE
Score0of 1
(skipped)

5. Travel cards are not pre-paid.

TRUE

FALSE

Score0of 1
(skipped)

6. Wire transfer is a mode of outward remittance from India.

TRUE

FALSE
Score0of 1
(skipped)

7. Foreign currency demand draft can be issued only in USD.

TRUE

FALSE

Score0of 1
(skipped)

8. Correspondent banking helps in issuance of demand draft.

TRUE

FALSE

Learning Confirmation
You have completed your quiz attempt. You have scored 0 point(s).

Question Results
Score0of 1
(skipped)

1. FCRA 1976 now stands repealed.

TRUE

FALSE
Score0of 1
(skipped)

2. Advance intimation on proposed inspection is not given by Monitoring Unit.

TRUE

FALSE

Score0of 1
(skipped)

3. FCRA 2010 is applicable to HUF.

TRUE

FALSE

Score0of 1
(skipped)

4. Interest earned on foreign contribution is also treated as foreign

contribution.

TRUE

FALSE
Score0of 1
(skipped)

5. More than 50% of foreign contribution received can be utilized for

administrative expenses without prior approval of Central Government.

TRUE

FALSE

Learning Confirmation
You have completed your quiz attempt. You have scored 0 point(s).

Question Results

Score0of 1
(skipped)

1. A remitter under LRS need not have been a customer since one year.

TRUE

FALSE

Score0of 1
(skipped)

2. FEMA 1999 does not apply to remittances made by residents.

TRUE

FALSE

Score0of 1
(skipped)

3. FEMA 1999 defines the current account and capital account

remittances.

TRUE

FALSE
Score0of 1
(skipped)

4. Prior remittance, the remitter should have maintained an account with

the concerned branch for at least one year.

TRUE

FALSE
Score0of 1
(skipped)

5. A resident going abroad as a tourist can carry foreign currency to the

extent of USD 4,000.

TRUE

FALSE

Learning Confirmation
You have completed your quiz attempt. You have scored 0 point(s).

Question Results
Score0of 1
(skipped)

1. Interest on NRO SB is taxable.

TRUE

FALSE
Score0of 1
(skipped)

2. An FCNR account can also be opened as a savings deposit.

TRUE

FALSE

Score0of 1
(skipped)

3. On maturity, the repayment of an FCNR account in one foreign currency

can be made in another foreign currency.

TRUE

FALSE
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4. Inward remittance for an NRE account comes through SWIFT message.

TRUE

FALSE
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5. Interest rates on FCNR accounts are not linked to LIBOR.

TRUE

FALSE

Learning Confirmation
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Question Results
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1. EEFC accounts can be maintained in USD only.

TRUE

FALSE

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2. EEFC accounts save on transaction costs.

TRUE

FALSE
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3. A close relative can be a joint EEFC accountholder on former or survivor

basis.

TRUE

FALSE
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4. An EEFC account can be opened as a savings account.

TRUE

FALSE

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5. The funds in an EEFC account can be used for payment of customs

duty.

TRUE

FALSE

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6. Only after foreign exchange is realized, the EEFC account is

credited.

TRUE

FALSE
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7. The balance amount in the account is eligible for grant of fund

based facility.

TRUE

FALSE

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8. Airfare and hotel expenses can be paid in foreign currency from an

EEFC account.

TRUE

FALSE