1. The statute which governs foreign exchange 1. The statute which governs foreign exchange transaction is ___________ which came into transaction is ___________ which came into effect during 01 June 2000:effect during 01 June 2000:

a) Foreign Exchange Regulation Act a) Foreign Exchange Regulation Act

b)b) Foreign Exchange Management Act 1999Foreign Exchange Management Act 1999

c) Foreign Exchange monitoring Actc) Foreign Exchange monitoring Act

d) Liberalised Foreign Exchange Regulationsd) Liberalised Foreign Exchange Regulations

As per FEMA, the sale and purchase of

foreign exchange can be undertaken only by ________

• 1. Authorised Dealer

• 2. Authorised Agent

• 3. Authorised Person

• 4. Financial Institutions

CDF is required, when foreign exchange

brought into India (TC + Currency) is:

• 1. equivalent of Rs.10000/-

• 2. 10000 units of any currency

• 3. equivalent of 10000 pound sterling

• 4. exceeds equivalent of $10000, in aggregate or exceeds equivalent of USD 5,000/- in currency

Maximum amount of foreign currency a

resident can receive from a non resident on

a visit to India towards sale price of goods/

services in India is USD ______ :

• 1. USD 10000 or equivalent • 2. USD 2000 or equivalent• 3. USD 5000 or equivalent• 4. No limit

Unused foreign exchange taken for travel in the form of currency notes is to be surrendered to an AD within ____ days of return:

• 1. 180 days

• 2. 90 days

• 3. 60 days

• 4. 270 days

The maximum amount of foreign exchange a person is permitted to hold for any length of time is USD _____:

• 1. 10000

• 2. 50000

• 3. 5000

• 4. 2000

The maximum amount of Indian currency which a resident can take to any country other than Nepal/ Bhutan is _______:

• 1. 7500• 2. 25000• 3. 10000• 4. Only INR of denomination of 100 or lesser

denomination is allowed without limit

The maximum amount of Indian currency which a resident & non-resident except Pakistanti / Bagladeshi, can carry to any country other than Nepal/ Bhutan:

• 1. 25000

• 2. 2000

• 3. 10000

• 4. 7500

The maximum denomination of Indian currency notes which can be taken/ brought into India from / to Nepal / Bhutan is ______:

• 1. 1000

• 2. 500

• 3. Only INR of denomination of 100 or lesser denomination is allowed without limit

• 4. 100

RBI has permitted resident individuals to open the following three types of foreign currency accounts:

• 1. RFC, NRNRD, EEFC, FCNR(B)

• 2. RFC, RFC (Domestic), EEFC

• 3. NRO, RFC, EEFC

• 4. NRO, NRNRD, RFC

RBI has permitted non residents to open foreign currency account in India which is named as:

• 1. NRE

• 2. FCNR (B)

• 3. FCNR(A)

• 4. NRNR

AD I banks may now allow remittance up to USD ____, per financial year, under the liberalised Remittance Scheme for Resident Individuals, for any permitted current or capital account transaction or a combination of both:

• 1. 200000• 2. 125000• 3. 25000• 4. 75000

New York branch of Model Bank in India opens an account with its Mumbai branch. For Mumbai branch, this account is:

• 1. a nostro account

• 2. a vostro account

• 3. a loro account

• 4. an ordinary account

Any person in India is permitted to

Hold foreign Coins up to a limit of USD:

• 1. 5000

• 2. 2000

• 3. 250

• 4. No such limit

For a person resident in India, a transaction which alters the asset or liability position outside India is called a _________ transaction:

• 1. Capital Account

• 2. Current Account

• 3. Asset/ Liability position

• 4. Position Account

An Indian resident acquires immovable property in New York. It comes under _________ transaction:

• 1. Capital Account

• 2. Current Account

• 3. Asset/ Liability position

• 4. Position Account

ADs are permitted to release FX up to USD _____ for all Miscellaneous remittance transactions on basis of simple declaration:

• 1. 5000

• 2. 25000

• 3. 2000

• 4. 10000

Maximum amount that can be released to resident for medical treatment abroad (USD) without reference to RBI:

• 1.50000

• 2.25000

• 3.100000

• 4.200000

Maximum amount that can be released by an AD for study abroad, without RBI’s prior approval in USD:

• 1. 25000

• 2. 50000

• 3. 100000

• 4. 200000

Maximum amount that can be released by an AD for business travel abroad, without RBI’s prior approval in USD:

• 1. 25000 per visit

• 2. 50000

• 3. 100000

• 4. 25000 per year

Maximum amount that can be released by an AD for private travel abroad, without RBI’s prior approval in USD:

• 1. 10000 per visit

• 2. 25000

• 3. 50000

• 4. 10000 per year

As per rule 2 of FEDAI, a usance export bill purchased remaining unpaid is required to be crystallized:

• 1. On the 30th day after due date

• 2. within 30 days from the date of purchase

• 3. within 30 days of dispatch of documents

• 4. Within 25 days after due date

Nostro account of Indian Bank with Bank of America in Washington is maintained in – currency:

• 1. Any permitted currency

• 2. INR

• 3. USD

• 4. SDR

Bank of America, New York is maintaining a rupee account with your Model branch. This account is called:

• 1. Nostro A/c

• 2. Vostro A/c

• 3. Resident A/c

• 4. Loro A/c

You receive a TT from your correspondent Bank for credit to the a/c of your customer. Which exchange rate will be applied by you?

• 1. TT selling rate

• 2. Bills buying rate

• 3. TT buying rate

• 4. Notional rate

Customer’s DD is received for credit to his a/c. DD is drawn by BOA, New York for USD 2500 on your branch. You will apply:

• 1. DD buying rate

• 2. Notional rate

• 3. TT buying rate

• 4. TT selling rate

The exchange rate to be applied for retiring an import bill on collection basis with an advise to remit the proceeds by TT:

• 1. TT buying

• 2. TT selling

• 3. Bills selling

• 4. Bills buying

The act which stipulates that all associations should receive foreign assistance only through registered accounts is called:

• 1. FEMA

• 2. FERA

• 3. FCRA

• 4. BCI

In case of travel, foreign exchange is to be released maximum _______ days before the date of travel:

• 1.15

• 2.30

• 3. 90

• 4. 60

No Foreign Exchange can be released for private travel of residents to:

• 1. Bangladesh 2. Pakistan

• 3. Nepal & Bhutan 4. Iran

In case of travel to Iraq or Libya, AD can release currency notes upto equivalent to USD _____

• 1. 1000

• 2. 2000

• 3. 5000

• 4. entire amount

Cash Payment against drawl of foreign exchange for travel abroad may be accepted by the AD

• 1. up to Rs.100,000

• 2. up to Rs.20,000

• 3. up to Rs.50,000

• 4. up to USD 5000

Joint Account is permitted along with a resident in the following account.

• 1. NRO

• 2. NRE

• 3. FCNR

• 4. ALL THE ABOVE

Term Deposits are allowed in case of __________ account.

• 1. RFC (Domestic)

• 2. EEFC

• 3. FCNR (B)

• 4. NONE OF THE ABOVE

The maximum period for which NRO term deposit can be opened is ______:

• 1. 3 years

• 2. 5 years

• 3. 20 years

• 4. same as domestic deposit

Interest on NRO deposit attracts tax at ……… % if the country is not coming under DTAA:

• 1. 10%

• 2. 20%

• 3. 30%

• 4. No tax to be deducted

NRE term deposits can be opened for a maximum period of ___ years:

• 1. 3

• 2.10

• 3. 8

• 4. 5

In case of NRE fixed deposit, the rate of interest is decided by:

• 1. RBI

• 2. the Bank concerned

• 3. FEDAI

• 4. Bank decides within the overall ceiling given by RBI

FCNR can be opened in the following form:

• 1. Current a/c

• 2. SB

• 3. RD

• 4. TD

Maximum and minimum period for which FCNR deposit can be opened:

• 1. 60months and 14 days

• 2. 36 months and 3 months

• 3. 60 months and 12 months

• 4. 36 months and 12 months

RFC (domestic) deposit can be maintained in the form of;

• 1. SB

• 2. CA/C

• 3. Term deposit

• 4. 1, 2, 3

In ‘Tom Contracts’ the delivery of foreign exchange should take place _______:

• 1. within 2 days

• 2. next day

• 3. Within 3 days

• 4. Next working day

When a person takes advantage by selling and buying of a currency in two different markets to take advantage of price differential prevailing at these markets, it is called:

• 1. Swap

• 2. Forward

• 3. Value date

• 4. Arbitrage

Date on which the exchange of currencies is agreed to take place is called:

• 1. Delivery Date

• 2. D. Date

• 3. Value date

• 4. FE Date

An AD enters into an agreement to take delivery of foreign exchange at a specified rate on a specified time. This agreement is called a ___________:

• 1.Forward Sale Contract

• 2.Forward Purchase Contract

• 3.Future Contract

• 4.Swap Contract

If the date of delivery in case of forward contract falls on a holiday, the delivery has to be effected on the

• 1. succeeding day

• 2. preceding day

• 3. succeeding working day

• 4. preceding working day

For import bills received on collection usance basis the AD may be required to book _______ contract:

• 1. Forward Purchase Contract

• 2. No contract can be booked for a collection bill

• 3. Future Contract

• 4. Forward Sale Contract

The ACU Dollar is a notional currency and its value is equal to _________

• 1. ACU Dollar

• 2. US Dollar

• 3. Australian Dollar

• 4. INR

Where an export bill remains outstanding for more than 6 months from date of export, banks are to submit to RBI a statement called………………

• 1. R return

• 2. BEF

• 3. Stat 5

• 4. XOS

A letter of credit is _________of the issuing Bank to pay against stipulated documents:

• 1. a guarantee

• 2. an indemnity

• 3. an undertaking

• 4. a letter

The __________forms the basis for opening of a letter of credit:

• 1. sales contract

• 2. invoice accepted by buyer

• 3. electronic message

• 4. any one of the above

The primary liability to pay under an LC arrangement lies with

• ___________bank:

• 1. credit opening bank

• 2. importer

• 3. exporter

• 4. negotiating bank

When the LC stipulates that negotiation can be made with a particular bank, the LC is called _______ credit:

• 1. particular

• 2. specified

• 3. restricted

• 4. not –negotiable

The bank which is required to pay the nominated bank by debiting account of the LC opening bank is called ______ bank.

• 1. Correspondent

• 2. paying

• 3. reimbursing

• 4. agent

The expiry date of the LC is the last date by which the exporter can ___________

• 1. ship the goods

• 2. get paid

• 3. present documents

• 4. amend the sale contract

An irrevocable credit is one which cannot be__________

• 1. amended at all

• 2. revoked at all

• 3. amended/ cancelled without consent of all concerned

• 4. amended after it is drawn

LC which guards against the risk of failure of issuing bank is __________LC:

• 1. Irrevocable

• 2. Back to Back

• 3. Confirmed

• 4. Transit

In case of sight credit the paying bank is given ________day(s) time (as per UCP) to decide the documents are credit confirmed or not:

• 1. one

• 2. two

• 3. five banking days

• 4. 7 working days

A standby LC is substitute for__________

• 1. Documentary letter of credit

• 2. Travelers cheque

• 3. International credit card

• 4. Guarantee

Expiry date of the credit falls on 15th January 2009, which is a holiday. The last date by which documents can be presented to nominated bank is____________

• 1. 14.01.2009• 2. 18.01.2009• 3. 16.01.2009• 4. 19.01.2009

Goods are shipped on 01.01.2009. The LC is silent as to the period after shipment within which the documents are to be presented to nominated banks. The expiry date of the LC is 28.02.2009. In this case, what is the last date of presentation of document?

• 1. 10.01.2009 • 2. 31.01.2009 • 3. 28.02.2009 • 4. 22.01.2009

The invoice unless otherwise specified should be made out in the name of___________

• 1. Beneficiary

• 2. Applicant

• 3. Issuing bank

• 4. Negotiable bank

A bill of lading is_________

• 1. A title to the goods

• 2. A receipt for the goods

• 3. An evidence of contract of carriage

• 4. 1, 2, 3

Unless otherwise specified in the LC, the following type of bill of lading should not be accepted as credit compliant

• 1. Charter Party B/L

• 2. B/L issued by freight forwarder

• 3. Claused bill of lading

• 4. 1, 2, 3

• 123. A clean bill of lading means _____________

• 1. Bill without any document

• 2. B/L indicating goods are loaded on board

• 3. Bill with loading factor

• 4. B/L stating goods are received in good condition

The LC is silent as to whether the B/L should be on board B/L or “Received for shipment B/L” the nominated bank should insist for _________ B/L

• 1. On board Bill of Lading

• 2. Received for shipment Bill of Lading

• 3. Confirmed Bill of Lading

• 4. Chartered party Bill of Lading

Unless specified otherwise in the LC, the insurance policy should be issued for an amount of ____% of CIF/CIP value of the goods

• 1. 100%

• 2. 95%

• 3. 120%

• 4. 110%

The expanded form of INCOTERMS is

• 1. Indian company’s terms

• 2. International confederation of trade & effective reforms in Marine Service

• 3. International Commercial terms

• 4. International Companies terms

How many terms are defined in INCOTERMS 2010?

• 1. 9

• 2. 11

• 3. 13

• 4. 15

• Who prescribes INCOTERMS_________?

• 1. RBI

• 2. IBRD

• 3. GATT

• 4. ICC

While purchasing an export bill the AD should apply ______ rate

• 1. Bills Selling

• 2. TT Selling

• 3. Bills Buying

• 4. TT Buying

• 135. EEFC Account can be opened by a person resident in India out of _____ proceeds received by him from abroad

• 1. Export

• 2. Professional fees

• 3. Any inward remittance not meant for a specific purpose

• 4. 1.2.3

EEFC account can be kept in form of ______ deposits

• 1. SB

• 2. Current

• 3. Term

• 4. RD

The exchange control copy of GR form is to be disposed off by the AD in the following manner:

• 1. Retain for inspection by internal auditors

• 2. Return to exporter after full realization

• 3. Send RBI after full realization of export value

• 4. Send to customs for reconciliation

PP form is to be submitted in duplicate by the exporter first to _______________

• 1. AD

• 2. RBI

• 3. Post Office

• 4. Customs

• 142. XOS statement is to be submitted to RBI at ___ intervals

• 1. Quarterly

• 2. Half yearly

• 3. Monthly

• 4. Yearly

In case of export of goods in physical form date of export means

• 1. Date of Invoice

• 2. Date of bill of exchange

• 3. Date of submission of export documents

• 4. Date of shipment

In case of Export Credit Insurance for Banks (Whole Turnover Packing Credit) ECIB (WT-PC) the premium for covering the packing credit account will be borne by the

• 1. Borrower

• 2. Financing bank

• 3. Bank – 50% & RBI – 50

• 4. Borrower – 50% & Bank – 50%

In case of Export Credit Insurance for Banks (Whole Turnover Packing Credit) ECIB (WT-PS) the premium for covering the packing credit account will be borne by the

• 1. Borrower

• 2. Financing bank

• 3. Bank – 50% & RBI – 50

• 4. Borrower – 50% & Bank – 50%

The ECGC premium is required to be paid at ____ intervals

• 1. Monthly

• 2. Quarterly

• 3. Half Yearly

• 4. Yearly

Importer – Exporter Code Number (IECN) is to be obtained from ______

• 1. RBI

• 2. DGFT

• 3. DGSD

• 4. CBEC

In India Trade Control comes under the control of _____

• 1. Ministry of Finance

• 2. Ministry of Commerce

• 3. Ministry of External Affairs

• 4. RBI

The Statutory Authority for Trade Control is

• 1. RBI

• 2. DGFT

• 3. FEDAI

• 4. Trade Control Board

Import Licenses are issued by ________

• 1. RBI

• 2. DGFT

• 3. FEDAI

• 4. Customs

Import License is required for import of _________

• 1. Prohibited items

• 2. Canalized items

• 3. both 1 and 2

• 4. Restricted Items

Advance payment for import of goods can be allowed by an AD up to the following amount without insisting guarantee of a foreign bank.

• 1. USD 2 lac

• 2. Rs. 1 lac

• 3. Rs. 5 lac

• 4. USD 5 lac

Advance payment for import of services can be allowed by an AD up to the following amount without insisting guarantee of a foreign bank

• 1. USD 2 lac

• 2. Rs. 1 lac

• 3. Rs. 5 lac

• 4. USD 5 lac

Bill of Entry is to be submitted in case of import exceeding Rs. __________

• 1. Rs. 25000

• 2. USD 25000

• 3. Rs. 1 lac

• 4. USD 1 lac

In case of default in submission of evidence of import the Authorised Dealer has to submit the details of the same to RBI in a statement called ___________

• 1. ENC

• 2. XOS

• 3. BEF

• 4. BIC

BEF statement is to be submitted to RBI at _______ intervals

• 1. Quarterly

• 2. Half yearly

• 3. Monthly

• 4. Fortnightly

The net of value of goods exported and goods imported by a country is known as ___________

• 1. Balance of Payment

• 2. Trade Surplus

• 3. Balance of Trade

• 4. Payment surplus / deficit

The document which provides for control & regulation of foreign trade by the Central Govt. is

• 1. FEMA

• 2. FT Policy

• 3. FC (Regulation) Act

• 4. FERA

Refinance against export credit for short term export is provided by ________

• 1. SIDBI

• 2. EXIM Bank

• 3. ECGC

• 4. RBI

FTP is announced in India for a period of _____ years

• 1. 5

• 2. 3

• 3. 2

• 4. 1

Packing Credit account can be liquidated out of the following:

• 1. Proceeds of bills drawn for the exported commodities on its purchase / discount etc

• 2. Out of balance in EEFC a/c• 3. From rupee resources of the exporter

to the extent exports have actually taken place

• 4. All the three

What is the all in cost ceiling prescribed by RBI for ECB of more than 5 years (All in cost over 6 month LIBOR?)

• 1. 100 basis points

• 2. 200 basis points

• 3. 300 basis points

• 4. 500 basis points

Whether Pan Card is compulsory for making a remittance under Liberalized Remittance Scheme?

• 1. Yes

• 2. No

AD has to report the details of the forex utilization by the International Debit Card holders above USD……..to RBI

• 1. 10000

• 2. 25000

• 3. 50000

• 4. 100000

An NRI/PIO can repatriate the sale proceeds of property inherited by him out of his NRO account up to USD………….in a financial year

• 1. 1, 00,000

• 2. 2, 50,000

• 3. 5, 00,000

• 4. 10, 00,000

Whether a student going out of India for studies can open NRE Account?

• 1. Yes

• 2. No

Validity period of our current Foreign Trade Policy is

• 1. 2000-15

• 2. 2009-14

• 3. 2010-15

• 4. 2015-20

• Applications by persons, firms and companies for making payments exceeding USD 5000 or its equivalent, towards imports to India must be made in Form ………..

• 1. A1

• 2. A2

• 3. A3

• 4. Not Required

Remittances against imports should be completed not later than …… months from the date of shipment

• 1. One month

• 2. 3 months

• 3. 6 months

• 4. 1 year

It is obligatory on the part of the AD to collect the exchange control copy of the Bill of Entry, if the amount remitted by him is more than USD………………..

• 1. 10,000

• 2. 25,000

• 3. 50,000

• 4. 1, 00,000

Average maturity of an ECB should be

• 1. 2 years

• 2. 3 years

• 3. 5 years

• 4. 7 years

An AD can permit trade credits for imports into India up to USD………….per transaction

• 1. 20 million

• 2. 25 million

• 3. 50 million

• 4. 100 million

All categories of Foreign Exchange earners are allowed to credit up to…………. % of their foreign exchange earning to their EEFC accounts

• 1.25%

• 2. 50%

• 3.75%

• 4.100%

Rate of interest, if any, payable on the advance payment received against exports does not exceed LIBOR + …………..basis points

• 1.100

• 2. 200

• 3. 250

• 4. 350

Can a Foreign National on his visit to India open an account in India?

• 1. Yes

• 2. No

What is hedging?

• 1. Covering exchange risk

• 2. A foreign currency

• 3. A letter of credit

• 4. A bank loan product

Which one of the following is a Pre -Shipment Credit

• 1. FBD

• 2. FBP

• 3. Advance against Cheques / drafts representing advance payment

• 4. FBN

Transactions in which the goods supplied do not leave the country and the payment for such supplies is received .either in Indian Rupees or in free foreign exchange refers to:

• 1.Indirect export

• 2.Deemed Export

• 3.Direct Export

• 4.Export of service

Maximum Period for which the pre-shipment finance can be extended at concessional rates for all types of commodities, from the date of advance is :

• 1.270 days

• 2.180 days

• 3. 360 days

• 4 90 days

Financial instruments whose value depends upon the underlying assets is known as

• 1.Swap

• 2.Derivatives.

• 3.Option

• 4.Interest rate swaps

Maximum Period for which the post-shipment finance can be extended at concessional rates for all types of commodities, from the date of advance is :

• 1. 270 days

• 2. 180 days

• 3. 360 days

• 4. 90 days

Maximum Period for which the post-shipment finance can be extended at concessional rates for all types of commodities, from the date of advance is :

• 1. 270 days

• 2. 180 days

• 3. 360 days.

• 4. 90 days

AD may allow payment of interest on usance bills or overdue interest for a period of less than _____ years from the date of shipment at the rate prescribed for trade credit from time to time

• 1. 3 years• 2. 2 years• 3. 5 years • 4. 4 years

Export Finance is a _________

• 1. Term Loan

• 2. Short Term Working Capital

• 3. DPG

• 4. Non-fund based limit

Canalized items can be :

• 1. Exported freely

• 2. Prohibited for export

• 3. Prior Permission to be obtained from DGFT for export

• 4 .Exported through the nominated agencies.

What is the Notional Transit Period (NTP) for demand bills drawn in foreign currency

• 1. 3 days

• 2. 25 days

• 3. 180 days

• 4. 360 days

In case where import bills have been received directly by the importers from the overseas supplier, remittance can be permitted without insisting on guarantee

• 1.USD 300,000

• 2. USD 100,000

• 3. USD 200,000

• 4. USD 500,000

Thank You

And

Wish U all the best