Professional Documents
Culture Documents
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
True/False
Question JV means Joint venture and WOS means World of Security.
Correct Answer False
Your Answer False
True/False
Question At Least one principal Lender bank is essential for issue of the ADR or GDR.
Correct Answer False
Your Answer True
True/False
Question Till August 1994 India was following the Indirect Methodof Rate quotation.
Correct Answer False
Your Answer False
1
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
True/False
Question Cause of increase in cost of public issues Underwriting fees , selling commission
Correct Answer True
Your Answer False
True/False
Question The Option period in the forward contract is at the option of the Banker, hence the
bank has to be very conservative in quoting rates.
Correct Answer False
Your Answer True
2
Your Answer Demand and supply, interest rates, inflation, , Sentiment, Speculation , GDP,Balance
of trade and payment,Unemployment
True/False
Question In red clause credit some clauses are printed in Red ink.
Correct Answer True
Your Answer False
3
Your Answer Export Inspection Council , Person authorised by Importer.
True/False
Question In developed markets, speculators play important role in determining the trend of
currency rates.
Correct Answer True
Your Answer True
4
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
True/False
Question The Negotiating bank examines the documents submitted by the seller and makes
payment if they comply the terms and conditions of the LC.
Correct Answer True
Your Answer True
True/False
Question Country risk analysis is a futile exercise in the background of cost of analysis.
Correct Answer True
Your Answer False
5
Question Correct Answer Your Answer
Issue of bonds without fixed rate of interest, linked to short term interest rate in the global market
FloatingRate Note FloatingRate Note
Issue of loans internationally,through arranger, underwriter,co manager, for a large amount for sharing
risk of lending Syndicated Loans Syndicated Loans
Equity issues in the foreign markets either as direct investments or portfolio investments. American or
Global Depository Receipts American or Global Depository Receipts
Bottom of Form
True/False
Question Cross currency forward contract is not meaningful if original contract is in Rupees to
USD
Correct Answer True
Your Answer True
6
Intolerable risk Drop the investment project Drop the investment project
Country risk analysis Cost of evluation does not justify analysis Cost of evluation does not
justify analysis
Maturity of future Time when actual commodity is delivered Last date of exercising
option
Bearer security issued in currency other than that of the country of issue Eurobonds Eurobonds
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
7
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
8
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
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
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
9
Your Answer False
10
Your Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of
rates between 3 currencies
True/False
Question JV means Joint venture and WOS means World of Security.
Correct Answer False
Your Answer False
True/False
Question Out of 15 member countries in European Union 12 countries commiteed themselves
for a single currency.
Correct Answer False
Your Answer False
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
11
Intolerable risk Drop the investment project Drop the investment project
Country risk analysis Cost of evluation does not justify analysis Cost of evluation does not
justify analysis
12
Multiple Choice Single Answer
Question How many INCOTERMS are there in "Departure" Group?
Correct Answer One
Your Answer Two
True/False
Question The American Dollar market comprises of the domestic segment of USD the offshore
segment of USD.
Correct Answer True
Your Answer True
True/False
Question Till August 1994 India was following the Indirect Methodof Rate quotation.
Correct Answer False
Your Answer True
13
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 Funding Options in domestic yen market are Futures, FRAs, Call and put options.
Correct Answer True
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 Prior approval of RBI is needed for payment of all imports.
Correct Answer False
Your Answer True
14
Select The Blank
Question To make the export more competitive and remunerative, the Indian Govt extends
________ facility.
Correct Answer Cash Incentives
Your Answer Advance against cash incentives
True/False
Question In the forward rate quotations between two currencies, when one currency is at
discount the other currency is at premium.
Correct Answer True
Your Answer True
15
Question A Bill of exchange payable 45 days from date of shipment, is a means of ________
from seller to the buyer.
Correct Answer Credit
Your Answer Credit
True/False
Question Import finance is nomally available at rates of interest cheaper than domestic finance
rates.
Correct Answer False
Your Answer False
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 True
16
True/False
Question Cross currency forward contract is not meaningful if original contract is in
Rupees to USD
Correct Answer True
Your Answer True
Intolerable risk Drop the investment project Drop the investment project
Country risk analysis Cost of evluation does not justify analysis Cost of evluation does not
justify analysis
Maturity of future Time when actual commodity is delivered Last date of exercising
option
17
Note issuance facility Euronotes Euronotes
Bearer security issued in currency other than that of the country of issue Eurobonds Eurobonds
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
18
Correct Answer American Dollar
Your Answer American Dollar
True/False
Question If ERD > IRD hen exporter should availa Rupee finance
Correct Answer True
Your Answer True
True/False
Question Funding Options in domestic yen market are Futures, FRAs, Call and put options.
Correct Answer True
Your Answer True
True/False
19
Question There is no difference between CIP and CIF contracts except the mode of
transportation.
Correct Answer True
Your Answer True
True/False
Question The volume of trading of Derivatives in the world trade market is growing but
still only 5% of the total.
Correct Answer False
Your Answer False
20
Your Answer Advertisement which lists the managers, underwriters, , List of Providers of
recently floated issue
True/False
Question JV means Joint venture and WOS means World of Security.
Correct Answer False
Your Answer False
21
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
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
22
True/False
Question An Indian importing goods from USA pays dollars in India.
Correct Answer False
Your Answer True
True/False
Question CFR = FOB plus freight paid by seller + insurance paid by seller.
Correct Answer False
Your Answer True
True/False
Question Integrated branches of Commercial banks handle forex transactions as well as options, swaps,
futures, arbitrage operations
Correct Answer True
Your Answer True
True/False
Question Normally the forward contracts are booked for making huge profits.
Correct Answer False
23
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
True/False
Question Till August 1994 India was following the Indirect Methodof Rate quotation.
Correct Answer False
Your Answer False
24
Correct Answer Euro Commercial Papers
Your Answer ADRs
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
25
Your Answer Individuals , firms, companies, resident in India
26
Question ________ is the agency of ICC which deals with the maritime crime.
Correct Answer International Maritime Bureau
Your Answer International Maritime Bureau
True/False
Question Cross currency forward contract is not meaningful if original contract is in Rupees to
USD
Correct Answer True
Your Answer True
Intolerable risk Drop the investment project Drop the investment project
Country risk analysis Cost of evluation does not justify analysis Cost of evluation does not
justify analysis
27
Match The Following
Question Correct Answer Your Answer
Maturity of future Time when actual commodity is delivered Last date of exercising
option
Bearer security issued in currency other than that of the country of issue Eurobonds Eurobonds
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
28
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 If ERD > IRD hen exporter should availa Rupee finance
Correct Answer True
Your Answer True
True/False
Question Funding Options in domestic yen market are Futures, FRAs, Call and put options.
29
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
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
30
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
True/False
Question JV means Joint venture and WOS means World of Security.
Correct Answer False
Your Answer False
31
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
True/False
Question Cross currency forward contract is not meaningful if original contract is in Rupees to
USD
Correct Answer True
Your Answer True
Intolerable risk Drop the investment project Drop the investment project
Country risk analysis Cost of evluation does not justify analysis Cost of evluation does not
justify analysis
32
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
Maturity of future Time when actual commodity is delivered Last date of exercising
option
Bearer security issued in currency other than that of the country of issue Eurobonds Eurobonds
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
33
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
True/False
Question If ERD > IRD hen exporter should availa Rupee finance
Correct Answer True
Your Answer True
34
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
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
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
35
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
36
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
True/False
Question Out of 15 member countries in European Union 12 countries commiteed themselves
for a single currency.
Correct Answer False
Your Answer False
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
Intolerable risk Drop the investment project Drop the investment project
Country risk analysis Cost of evluation does not justify analysis Cost of evluation does not
justify analysis
37
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
38
Question The American Dollar market comprises of the domestic segment of USD the offshore
segment of USD.
Correct Answer True
Your Answer True
True/False
Question Till August 1994 India was following the Indirect Methodof Rate quotation.
Correct Answer False
Your Answer True
True/False
Question Funding Options in domestic yen market are Futures, FRAs, Call and put options.
Correct Answer True
Your Answer True
39
Question ECGC provides cover to an Indian contractor for construction work abroad under
________.
Correct Answer Construction works policy
Your Answer Construction works policy
True/False
Question In red clause credit some clauses are printed in Red ink.
Correct Answer True
Your Answer True
True/False
Question Prior approval of RBI is needed for payment of all imports.
Correct Answer False
Your Answer True
40
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
True/False
Question In the forward rate quotations between two currencies, when one currency is at
discount the other currency is at premium.
Correct Answer True
Your Answer True
41
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
True/False
Question Import finance is nomally available at rates of interest cheaper than domestic finance
rates.
Correct Answer False
Your Answer False
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 True
True/False
Question Cross currency forward contract is not meaningful if original contract is in
Rupees to USD
Correct Answer True
Your Answer True
42
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
Intolerable risk Drop the investment project Drop the investment project
Country risk analysis Cost of evluation does not justify analysis Cost of evluation does not
justify analysis
Maturity of future Time when actual commodity is delivered Last date of exercising
option
Bearer security issued in currency other than that of the country of issue Eurobonds Eurobonds
True/False
43
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
44
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
True/False
Question If ERD > IRD hen exporter should availa Rupee finance
Correct Answer True
Your Answer True
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
45
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
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
46
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
True/False
Question JV means Joint venture and WOS means World of Security.
Correct Answer False
Your Answer False
47
Multiple Choice Single Answer
Question A Bank quotes interest rate of 9.50/10.00for six months dollar deposit, here the bid rate is :-
Correct Answer 9.50% P.A.
Your Answer 9.50% P.A.
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
True/False
Question An Indian importing goods from USA pays dollars in India.
Correct Answer False
Your Answer True
48
Certificate of Inspection As per importers requirement Export Declaration form
Certifiate of Origin Export Promotion Council Export Declaration form
True/False
Question CFR = FOB plus freight paid by seller + insurance paid by seller.
Correct Answer False
Your Answer True
True/False
Question Integrated branches of Commercial banks handle forex transactions as well as options, swaps,
futures, arbitrage operations
Correct Answer True
Your Answer True
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
49
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
50
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
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
51
-Euro Market Market in Euro currencies Market in Euro currencies
-Making market Quoting rate for both buying and sellinga currency Difference in prices of two legs of
buying and selling
-Spread Price difference between bid and offer Maket of 'Euro'
True/False
52
Question Cross currency forward contract is not meaningful if original contract is in Rupees to
USD
Correct Answer True
Your Answer True
Intolerable risk Drop the investment project Drop the investment project
Country risk analysis Cost of evluation does not justify analysis Cost of evluation does not
justify analysis
Maturity of future Time when actual commodity is delivered Last date of exercising
option
Bearer security issued in currency other than that of the country of issue Eurobonds Eurobonds
53
Margin on future 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
54
Correct Answer Economies
Your Answer Currencies
True/False
Question If ERD > IRD hen exporter should availa Rupee finance
Correct Answer True
Your Answer True
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
55
Question Financial management is complex process for
Correct Answer Companies which have international trade
Your Answer Companies which have international trade
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
56
Correct Answer Euro Commercial Papers
Your Answer Euro Commercial Papers
True/False
Question JV means Joint venture and WOS means World of Security.
Correct Answer False
Your Answer False
57