BFM-Module: A-INTERNATIONAL BANKING Questions (MCQ)

TEST YOUR SELF  : MCQ  ON INTERNATIONAL BANKING

1. Foreign Exchange Management Act (FEMA) is administered   by:

(a) RBI (b) Govt. of India (c) SEBI (d) Both (a) & (b) (d) All of these

2. A license to deal in foreign exchange to authorized dealers is issued by :

(a) DGFT (b) FEDAI (c) RBI (d) EXIM Bank(e) both (a) & (c)

3. All foreign exchange transactions in India are governed by :

(a) Foreign Exchange Regulation Act, 1973 (b) Reserve Bank of India Act, 1934

(d) Foreign Exchange Management Act, 1999 (e) Banking Regulation Act,1949

4. Restricted money changers are the firms/ organizations authorized to undertake :

(a) sale of foreign currency notes, coins and travellers' cheques to the public

(b) purchase of foreign currency notes, coins and travellers' cheques from the public

(c) issue of letters of credit for their importer customers

(d) both safe and purchase of foreign currency notes, coins, travellers' cheques to / from the public

(e) either (a) or (b) above

5_ Full fledged money changers are the firms/ organizations authorized to undertake :

(a) sale of foreign currency notes, coins and travellers' cheques to the public

(b) purchase of foreign currency notes, coins and travellers' cheques from the public

(c) issue of letters of credit for their importer customers

(d) both sale and purchase of foreign currency notes, coins, travellers' cheques to I from the public

(e) either (a) or (b) above

6. Forward transaction in foreign exchange means a transaction :

(a) that is to be settled on the same day

(b) in which delivery of foreign exchange takes place on the second working day of the contract

(c) in which delivery of foreign exchange takes place on the next working day of the contract

(d) in which delivery of foreign exchange takes place beyond second working day of the contract

(e) in which delivery of foreign exchange takes place after at least 90 days beyond the day of the contract

7. Forex transactions are classified according to date of-deal and date of delivery. Which of the following is not correct regarding type of exchange transaction?

(a) cash: which is to be settled on the same day

(b) spot: delivery of foreign exchange takes place on the second working day of the contract

(c) TOM: delivery of foreign exchange takes place on the next working day of the contract

(d) Forward: delivery of foreign exchange takes place beyond second working day of the contract

(e) None of these

8. For the purpose of foreign exchange transactions, foreign banks maintain accounts with ADs in India in Indian rupees. In their mutual communications, Ads in India refer to such accounts as_ accounts.

(a) Loro (b) FCNR (c) Vostro (d) Nostro (e) Escrow

9. Account of a bank in India with a foreign correspondent bank abroad in foreign currency is called:

(a) Loro (b) FCNR (c) Vostro (d) Nostro (e) Escrow

10. Which of the following is not correct regarding classification of correspondent accounts?

(a) Nostro: Our account with you (b) Vostro: Your account with us

(c) Lore: Their account with them (d) None of these

11. Bank of India maintains Nostro account with Citibank in New York. Bank of Baroda also maintains Nostro account with Citibank New York. If Bank of India wants to transfer funds from its Nostro a/c to Nostro a/c of BoB, then account of BoB is called as :

(a) Nostro (b) Vostro (c) Loro (d) Kerb (e) None of these

EXCHANGE RATES

12. When Foreign currency is fixed and value of home currency is variable, it is called:

(a) Direct Rate (b) Indirect Rate (c) Cross Rate (d) Variable Rate (e) None of these

 13_ When home currency is fixed and value of foreign currency is variable, it is is called:

(a) Direct Rate (b) Indirect Rate (c) Cross Rate (d) Variable Rate (e) None of these

 14_ In India, which type of rate is applied?

(a) Direct Rate (b) Indirect Rate (c) fixed rate (d) Variable Rate (e) None of these

15. In India, exchange rates are decided by whom?

(a) RBI (b) FEDAI (c) IBA (d) market forces (e) None of these

16. The quotation US $ 1 = Rs. 44.40 - Rs. 44.50 is:

(a) average rate (b) indirect rate (c) direct rate (d) cross rate (e) none of  these

17. When Nostro account of the bank is credited before the payment to the tenderer of foreign exchange, which of the following rates will be applied?

(a) TT Buying Rate (b) Bills Buying Rate (c) TT Selling Rate (d) Bills Selling Rate

18. When Nostro account of the bank is credited later than the payment to the tenderer of foreign exchange, which of the following rates will be applied?

(a) TT Buying Rate (b) Bills Buying Rate (c) TT Selling Rate (d) Bills Selling Rate

19. When there is outward remittance and handling of import bills is involved, which of the following rates will be applied?

(a) TT Buying Rate (b) Bills Buying Rate (c) TT Selling Rate (d) Bills Selling Rate

20. When there is sale of foreign exchange, but import bills are not handled, which rate will be applied?

(a) Clean Selling Rate   (b) Cheque Selling Rate (c) TT Selling Rate (d) Bills Selling Rate

21. Why exchange rate for purchase or sale of foreign currency are most unfavourable?

(a) Holding cost of currency is high (b) Bank does not get any exchange commission

(c) Bank runs the risk of counterfeit currency (d) Both (a) & (c) (e) All of these

22. The difference between buying and selling rate quoted by an Authorised Dealer is called:

(a) Dealer's Margin (b) Dealer's spread  (c) Dealer's commission (d) None of these

23. A customer wants to subscribe to a magazine published in Paris. The exchange rate for draft will be :

(a) TT buying (b) TT selling (c) Bills selling (d) Bills buying (e) none of these

24. Your non-resident customer presents a draft in foreign currency for which cover has already been provided in Nostro account. The rate of exchange to be applied to the transaction will be :

(a) TT buying (b) Bills selling (c) Bills buying (d) TT selling (e) none of these

25. Your importer customer has to retire his import bill. The rate of exchange to be applied will be:

(a) Bills buying (b) TT selling (c) Bills selling (d) TT buying (e) none of these

26. You had negotiated an export bill of your customer in May,2009. This bill has been returned by the overseas buyer for some reasons and the AD has to debit his customer's account with Indian rupees. The rate to be applied will be :

(a) Bills buying (b) TT selling (c) TT buying (d) Bills selling (e) none of these

27. On which of the following TT buying rate will not be applied?

(a) Payment of DD drawn on the paying bank (b) cancellation of outward TT, MT

(c) Conversion of proceeds of instruments sent for collection (d) purchase of foreign DD drawn abroad

28. On which of the following TT Selling rate will not be applied?

(a) crystallization of overdue export bills (b) crystallization of over-dile import bills

(c) Issue of foreign DD/MT (d) cancellation of outward TT/MT (e) Both (b) & (d)

LETTER OF CREDIT

29. Letters of credit transactions subject to provisions of :

(a) exchange control manual of RBI (b) UCPDC, 600 (c) UCPDC,500

(d) Foreign Trade Policy, 2009 (e) 1NCOTERMS

30. Full form of UCPDC is:

(a) Uniform Contract & Practices for Documentary Credit

(b) Universal Customs & Practices for Documentary Credit

(c) Uniform Customs & Practices for Documentary Credits

(d) Universal Customs & Provisions for Documentary Credits

31. For letter of credit transactions in international trade, under UCPDC (ICC publication 600) branches of a bank in different countries are considered :

(a) another bank (b) units of the same bank (c) associate banks

(d) either (a) or (b) as per choice of beneficiary (e) either (a) or (c) as per choice of negotiating bank

32. If a credit does not indicate whether it is revocable or irrevocable, as per UCPDC, 600, it will be treated as :

(a) irrevocable (b) revocable (c) either revocable or irrevocable as per choice of beneficiary

(d) either revocable or irrevocable as per choice of applicant of the credit

(e) either (a) or (b) as per mutual consent of beneficiary and advising bank

33. If a letter of credit and UCPDC have contradictory provisions which of the following statements will be true ' in this regard:

(a) Provisions of UCPDC will prevail over those of Credit

(b) Provisions of Credit will prevail over those of UCPDC

(c) Better of the provisions of UCPDC or Credit as applicable to beneficiary will prevail

(d) Better of the provisions of UCPDC or Credit as applicable to applicant of Credit will prevail

(e) It being a disputed matter the matter will have to be referred to ICC,Paris

34. Which of the following feature(s) do/does not apply to a 'Transferable Credit'?

(a) Transferable L/C is one which is expressly written to be 'Transferable'.

(b) Transferable VC can be transferred only once but can be transferred to more than one parties.

(c) In a 'Transferable Credit' the first beneficiary has the right to substitute his own invoice(s) and draft for those of the second beneficiary.

(d) Transfer of such Credit by second beneficiary back to first beneficiary is not permitted

35. A 'Revolving Credit' means a letter of credit :

(a) which is available for use in any country

(b) covering many shipments up to a particular period of time or a particular amount or both

(c) which can be easily transferred by the beneficiary to his suppliers

(d) which allows the beneficiary packing credit in foreign currency

36. A 'Red Clause' LC is one in which :

(a) the beneficiary can avail pre-shipment finance up to the amount specified in LC.

(b) negotiation is restricted to a particular bank (c) all clauses are compulsorily printed in red

(d) there are certain restrictive clauses as to period of shipment / negotiation of bills etc

37. A 'Back to Back' letter of credit is :

(a) one on the strength of which another bank's guarantee is obtained

(b) a second set of fresh LC opened in favour of second beneficiary on the strength of original LC

(c) one backed by the government guarantee

(d) a set of two LCs printed on the back of each other (e) none of these

38. A 'Green Clause' letter of credit is an extension of: (a) transferable credit (b) confirmed irrevocable credit

(c) red clause credit (d) revolving credit (e) all of the above

39. A 'Claused bill of lading' means bill of lading :

(a) containing special clauses as required under letter of credit

(b) with a clause that shipping company has a right to increase freight

(c) giving the importer right to refuse payment of freight if goods are damaged on board

(d) indicating defective condition / packing of goods (e) any one or more of the above

40. The expiry of a letter of credit is 15.07.2009. The last date of shipment mentioned in the LC is 30.06.2009. The shipment was actually made on 17.06.2009 and documents were presented on 15.07.2009. Choose the best option out of the following as per provisions of UCPDC, 600.

(a) The documents should have been presented within 7 days from date of shipment

(b) The documents can be accepted as they are presented within the validity of the letter of credit

(c) The documents should have been presented within 15 days from date of shipment

(d) The documents should have been presented within 21 days from date of shipment

(e) none of the above

41. PNB received a letter of credit Opened by a bank in Germany. It is not in a position to verify the apparent authenticity of L/C. Which of the following is true with reference to the L/C as per UCPDC,600 ?

(a) PNB must advise the credit to the beneficiary without disclosing the facts

(b) PNB may elect not to advise the credit and must so inform the issuing bank without delay

(c) PNB may elect to advise the credit to the beneficiary without recourse

(d) either (b) or (c) (e) either (a) or (b)

42. A letter of credit was issued on 1.8.2009. The bill of lading presented on 10.8.2009 under LIC was dated 25.07.2009. The LIC is silent on this aspect. AD should :

(a) accept the bill of lading, if otherwise in order (b) not accept a document dated prior to date of L/C

(c) refer the matter to the applicant of UC (d) refer the matter to issuing bank (e) none of these

43. A manufacturer exporter will prefer:

a) Transferable LC b) Irrevocable LC c) Irrevocable Confirmed LC  d) Revocable LC

44. As per UCPDC 600, the words "about" or "approximately" used in connection with the amount of the credit or the quantity or the unit price stated in the credit are to be construed as allowing a tolerance not to exceed % more or less than the amount, the quantity or the unit price to which they refer.

(a) 10% (b) 5% (c) 1% (d) No variation is allowed

45. In a set of documents submitted under letter of credit the date of shipment is 30. 3.2009 whereas the insurance policy is dated 3.4.2009. In this case :

(a) we may accept the documents provided necessary cover has been provided in the policy effective from date of shipment.

(b) we must refuse the documents as it is a discrepancy

(c) the date of insurance policy must be changed to be prior to the date of shipment

(d) either (b) or (c) (e) none of the above

46. The beneficiary of an irrevocable letter of credit which was advised by us requests us to add our confirmation. Under the circumstances :

(a) confirmation is added at the request of opening bank and will be done only as per the arrangement.

(b) we may do so as confirmation is usual course of business only and there is no commitment of the bank which adds the confirmation.

(c) we must add our confirmation as it was advised by us

(d) we should decline it as no confirmation is necessary on the irrevocable letter of credit and only a revocable letter of credit needs confirmation.

(e) we may do so only after obtaining indemnity from the issuing bank.

47. Our bank opened an irrevocable letter of credit and our correspondent bank abroad negotiated the bills under this LC and got the reimbursement. When the documents were presented to our importer customer, he refused to pay on the plea that-goods were not as per the contract. In this case :

(a) we will verify the goods and take them into our possession

(b) we cannot recover the money from the negotiating bank because as per UCPDC we deal in documents and not in goods and will proceed to recover the amount from the importer.

(c) we will request the correspondent bank to pay back the money.

(d) either (a) or (b) (e) none of the above.

48. A letter of credit was opened by us stipulating for 'clean on board bill of lading'. While scrutinizing documents under the UC we find that the notation 'some packages torn' appears on the bill of lading. We should :

(a) accept the bill of lading as it is as per terms of UC

(b) try to rectify the irregularity with the shipping agent

(c) wait until the ship arrives and verify the goods

(d) immediately on receipt of documents, inform the negotiating bank by telex that documents are discrepant and they are held at the risk and responsibility of the negotiating bank

(e) either (b) or (c)

49. A letter of credit is opened in US dollars. The insurance document can be in :

(a) US dollars only if not otherwise stipulated in the Credit. (b) in any freely convertible currency

(c) in Indian rupees only (d) in US dollars only (e) either (b) or (c)

50. As per UCPDC 600, if there is no indication in the credit of the insurance coverage required, the amount of insurance coverage must be at least value of the goods.

(a) 110% of CIF value (b)110% of FOB value (c)100% of FOB value (d) 100% of CIF value (e) None

51. An UC calls for commercial invoice not exceeding US $ 2,00,000. As per UCPDC, 600, the invoice can be for : (a) US $ 2,00,000 (b) Upto US $ 2,20,000 (c) Upto US $ 2,10,000

(d) Upto $ 2,02,000 (e) none of the above.

52. Bank of Tokyo advised an UC to the beneficiary in India through BOB. It intends to advise an amendment through SBI. Under UCPDC :

(a) it is choice of issuing bank to select any bank for advising amendment.

(b) it has to advise amendment only through BOB

(c) it has to advise amendment through RBI only. (d) either (a) or (c ) (e) none of these.

53. If a credit contains conditions without stating document(s) to be presented in compliance therewith, what should the bank do?

(a) have to seek clarification from opening bank (b) disregard the conditions as not stated

(c) obtain documents in their discretion which appear to satisfy these conditions.

(d) either (a) or (c) (e) none of the above

54. An L/C was available for shipment by monthly instalments of ready made garments from India. The shipment for March,2009 was not effected within the time available for that instalment. In this case, as per UCPDC:

(a) beneficiary of L/C can ship two instalments together in Apri1,2009

(b) the credit ceases to be available for that and subsequent insalment unless otherwise stipulated in the credit

(c) even earlier instalments will not be covered under L/C

(d) either (a) or (c) (e) the matter be referred to RBI

55. Under UCPDC 600, what is maximum number of days allowed for examination of documents by issuing bank and negotiating bank?:

(a) 5 banking days each (b) 5 days-each (c) 7 banking days in total (d) 7 banking days

56. As per Article 36 of UCPDC 600, (Force Majeure clause) a bank assumes no liability or responsibility for the consequences arising out of the interruption of its business by Acts of God, riots, civil commotions, insurrections, wars, acts of terrorism, or by any strikes or lockouts or any other causes beyond its control. Which of these items has been added in UCPDC 600?:

(a) acts of terrorism (b) wars (c) riots (d) Both (a) & (b) (e) None of these

57. If 'about' or 'approximately' is not written with the quantity of, goods, a tolerance of more or-less than

the quantity of the goods is allowed, provided the credit does not state the quantity in terms of a stipulated number of packing units or individual items and the total amount of the drawings does not exceed the amount of the credit

(a) 1% (b) 5% (c)10% (d) Nil (e) None of these

58. If in a letter of credit, word about is written with the date for the submission of documents for negotiation, then up to which date documents can be submitted for negotiation?

(a) 5 days before (b) 5 days after (c) 5 days before or 5 days after (d) None of these

59. As per UCPDC 600, if on a LC date of expiry is written as by the end of June, it means

(a) 21st to 30th June (b) 30th  June(c) 21st  June to 29th June if 30th June is holiday (d) None

60. Unless otherwise stated in Letter of Credit, banks will accept which type of bill of lading?

a) Charter party bill of lading b) Straight bill of lading c) Received for shipment bill of lading

d) On Board bill of lading (e) None of these

61. Under Letter of Credit part amount paid to beneficiary. While paying balance amount, Importer complains against quality of goods and request the bank not to pay the amount for bills drawn under LC. What should be done by bank?:

(a) Bank should not pay as it is a case of fraud

(b) Bank should not pay as recovery will be difficult in such circumstances

( c) Bank can suspend payment, seek clarification from exporter and make payment after being satisfied. ,M (d ) Bank has to make payment as in LC transactions, banks deal in documents and not in goods.

62. In a letter of credit, it is written that documents can be negotiated on 30th June. In this case, the documents can be negotiated up to which date?

(a) on 30th June only (b) between 25th June to 30th June (c) between 26th  June to 30th June

(d) between 25th  June to 5th July (e) None of these

63. A letter of credit issued on the strength of another LC is called:

(a) Back to Back Credit (b) Transferable LC (c) Red Clause LC (d) Anticipatory LC

64. A Letter of credit that carries a provision (traditionally written or typed in red ink) which allows exporter to raise pre shipment credit up to a fixed sum from the advising or paying-bank at the request of issuing bank is called:

(a) Back to Back Credit (b) Transferable LC (c) Red Clause LC (d) Anticipatory LC

NON RESIDENT ACCOUNTS

65. Who of the following can open a Non-Resident Account ?

(a) An Indian national working with a foreign shipping company with his base office in Hongkong

(b) An Indian who has gone abroad to pursue higher studies

(c) An Indian who has gone abroad for medical treatment (d) all of these (e) only (a) & (b)

66. Who is called as Resident as per FEMA 1999?:

(a) A person who stayed in India for more than 182 days in the previous financial year.

(b) A person who stayed in India for minimum 182 days in the previous financial year

(c) A person who stayed in India for more than 182 days in the previous calendar year

(d) A person who stayed in India for minimum 182 days in the previous calendar year

(e) None of these

67. An NRE term deposit account can be opened for a minimum period of :

(a) 3 years (b) 5 years (c) 10 years (d) 6 months (e) 1 year

68. As per RBI guidelines FCNR (Bank) Account can be opened in :

(a) three currencies, namely Pound sterling., US dollar & Euro

(b) only two foreign currencies namely Pound sterling or US dollars

(c) four currencies, namely Pound sterling., US dollar, Euro, Japanese Yen

(d) six currencies, namely Pound sterling., US dollar, Euro, Japanese Yen, Canadian dollar & Aus dollar

(e) None of these

69. At present rate of interest on NRE term deposit for 5 years maturity as per RBI guidelines is :

(a) not exceeding 6% (b) not exceeding 250 basis points below BPLR of the bank

(c) not exceeding 250 basis points above LIBOR for USD for 3 years maturity

(d) not exceeding LIBOR for USD for 3 years maturity plus 175 basis points

(e) not exceeding 50 basis points above LIBOR for USD for 5 years maturity

70. At present rate of interest on NRE savings bank account as per RBI guidelines is :

(a) As applicable in domestic deposits

(b) not exceeding rate applicable to NRE term deposit of one year

(c) not exceeding 50 basis points above LIBOR for USD for 6 months maturity

(d) not exceeding 50 basis points above LIBOR for USD for one year maturity

(e) not exceeding 6 months LIBOR for USD

71. When an NRE FD is made for more than 5 years, interest rate will be:

(a) as applicable for 5 years (b) as applicable for 3 years

(c) Nil as NRE FD can not be for more than 3 years. (d) 3 year or 5 year as per bank discretion

72. Minimum and maximum period for which FCNR (B) term deposits can be opened is year and year. a)1,5 (b) 1,3 (c) 1,7 (d) 3, 5 (e) none of these

73. Which type of account can be opened as NRE account?

(a) Saving (b)current (c) fixed deposit (d) Both (a) & (b) only (e) All of these

74. For converting NRE Deposit to FCNR Deposit which rate would be applicable?

a) TT Buying Rate b) TT Selling Rate c)BiII Buying Rate d) Bill Selling Rate

75. NRI is defined in which of the following Acts

a)RBI Act b)Income Tax Act c)FEMA d)PML Act (e) None of these

76. A NRI can remit up to US$in a financial year from his NRO account on account of Sale proceeds of immovable property provided it is held for at least years.

(a) 1 million, 10 years (b) 1 Iakh, 5 year (c) llakh, 5 year (d) 1 million, no restriction

77. In NRO A/c, Minimum period of term deposit is :

(a) 1 year (b) 6 months (c) 7 days (d) 15 days (e) None of these

78. Which type of account can be opened as NRO account?

(a) Saving (b)current (c) fixed deposit (d) Both (a) & (b) only (e) All of these

79. In which of the following type of deposit accounts, exchange risk is borne by bank?

(a) NRO account (b) NRE account (c) FCNR account (d) Both NRE & FCNR (e) None of these

80. If FCNR deposit is for more than 1 year, interest will be compounded at what interval?

(a) monthly (b) quarterly (c) half yearly  (d) after every 180 days (e) None of these

81. In which type of accounts of NRI, joint account can be opened with resident?

( a) NRO account ( b) NRE account (c) FCNR account (d) RFC ( e) RFC   ( Domestic)

82. Which of the following type of accounts can be opened only as Fixed Deposit?

(a) NRO account (b) NRE account (c) FCNR account (d) Both NRE & FCNR (e) None of these

83. Maximum loans against NRE / FCNR deposit that can be allowed by a bank is:

(a) Rs 20 lac (b) Rs 30 lac (c) Rs 50 lac (d) Rs 100 lac (e) None of these

84. What type of exchange rate is applied when foreign currency funds from FCNR(B) account are converted to NRE Saving account:

(a) Bills Buying (b) TT Buying (c) TT Selling (d) Bills Selling (e) None of these

85. In a NRE account, which of the following can not be done by Power of attorney holder?

(a) all local payments in rupees including payments for eligible investments & Remittance outside India of current income in India of the non-resident individual account holder, net of applicable taxes to the account holder himself.

(b) repatriate outside India funds in the account other than to the non-resident individual account holder

(c) make payment by way of gift to a resident on behalf of the non-resident account holder & transfer funds from the account to another NRO account.

(d) Both (b) & (c) only (e) None of these

86. For which type of accounts, STAT 5, STAT8 returns are prepared respectively?

(a) NRE, FCNR (b) FCNR & NRE (C) NRE & NRO (d) FCNR & NRO

87. A FCNR(B) deposit has been made for one year. Interest compounding will be done at the interval of (a) monthly (b) quarterly (c) half yearly  (d) after 180 days (e) No compounding

88. FCNR-B, account can not be opened in which of the following currency?

(a) Singapore Dollar (b) Hongkong Dollar   (c) Canadian Dollar (d) Both (a) & (b) (e) None

89. The balance along with interest is fully repatriable in which type of accounts?:

(a) NRO account (b) NRE account (c) FCNR account (d) Both NRE & FCNR (e) None of these

90. NRE account cannot be opened in which of the following currencies?

(a) Indian Rupees (b) USD (c) Euro (d) Both (b) & (c) (e) None of these

FOREIGN CURRENCY ACCOUNTS OF RESIDENTS-

91. A Non-resident account holder returned to India for permanent settlement on 1.7.2009 after spending about 2 years abroad. His Non-Resident (External) account can be converted into :

(a) Non-Resident (Ordinary) account (b) Resident account (c)Resident Foreign Currency   account

(d) -(b) or (c) as per his choice (e) - (a) or (c) as per his choice

92. RFC account can be opened in which type of following accounts?

(a) Saving (b)current (c) fixed deposit (d) Both (a) & (b) only (e) Any of  these

93. Who can open RFC account:

(a) NRI returning to India after staying abroad for a minimum period of 1 year.

(b) Any NRI who had opened NRE or FCNR(B) account with the bank.

(c) Any resident individual (d) All of these (e) None of these

94. My uncle gave me gift of USD 20000. In which type of following accounts it can be credited?

(a) RFC (b) RFC(Domestic) (c) EEFC (d) NRE (e) None of these 100%

95. Exporters other than 100% Export Oriented Unit can deposit _ % of export proceeds to Exchange Earners Foreign Currency account:

(a) 25% (b) 50% (c) 75% (d) 100% (e) None of these

96. What type of account can be opened under EEFC scheme?:

(a) Only fixed deposit (b) Only non interest bearing current account (c) Either (a) or (b)

(d) None of these as scheme has been discontinued w.e.f. 1.11.08

EXPORT CREDIT

97. Presently rate of interest on pre-shipment credit in forex (PCFC) up to 180 days is not exceeding:

(a) 200 basis points above LIBOR (b) 100 basis points above LIBOR

(c) 150 basis points above LIBOR (d) 50 points above LIBOR (e) 350 basis points below LIBOR

98. As per current guidelines of RBI, for loans sanctioned up to 30.6.2010, rate of interest on pre-shipment credit in rupees up to 270 days should not exceed :

(a) Bank Rate plus 2.5% (b) BPLR plus 1.5% (c) BPLR minus 2.5%

(d) Bank Rate minus 2.5% (e) lower of (a) and (b)

99. As per the exchange control regulations, the payment for exports should in general be realized within a period of:

(a) 12 months from date of shipment (b) 360 days from date of packing of goods

(c) 180 days from the date of shipment (d) 270 days from date of shipment

(e) 180 days from the date of receipt of consignment by the buyer in foreign country

100. Which of the following is/are not true with regard to features of Gold Card Scheme for exporters:

(a) Only exporters whose accounts have been 'Standard' continuously for 3 years are eligible

(b) Gold Card holders will be given preference is granting packing credit in foreign currency (PCFC)

(c) Time norm for disposal of fresh applications for credit under the scheme will be 25 days

(d) Gold Card for exporters will be issued for a period of 5 years (e) none of these

101. Minimum and maximum amount up to which the Gold Credit card can be issued to exporter is Rs

  lac and Rs lac. : (a) 100,1000 (b) 50, 500 (c) 100, 5000

(d) 20,200 (e) None of these as it is based on anticipated turnover.

102. As per the exchange control regulations, the payment for exports should in general be realized within a period of : (a) 12 months from date of shipment (b) 3 months from date of shipment

(c) 6 months from the date of shipment (d) 1 month from date of shipment

(e) 45 days form date of shipment

103. Units in a special economic zone are permitted to realise and repatriate to India the full export value of goods or software within a period of ...................from the date of shipment.

(a) 3 months (b) 6 months (c) 180 days (d) 360 days (e) none of these as there is no time limit

104. In respect of shipments made to Indian owned warehouses abroad established with permission of RBI, export proceeds should be realized within :

(a) 6 months (b)3 months (c) 9 months (d)15 months (e) 150 days

105. RBI monitors overdue export bills-not realized within the stipulated time by calling for a half yearly statement from ADs referred to as : (a) BEF (b)XOS (c) GTE-1 (d) ST-9 (e) ENC 

106.Packing credit advances mean :

advances granted to industrial units for packing of manufactured goods for sale in India

advances granted to eligible exporters for purchase/manufacture/processing/transporting/packing etc. of goods meant for export

(c) advances granted to importers to enable them to store and subsequently sell imported goods locally

(d) any one or more of the above (e) none of the above.

107. To be eligible for packing credit advances the customer :

(a) should not be in the caution list of RBI or specific approval list of ECGC

(b) must be holding importer/exporter code number allotted by DGFT

(c) should be recognised export house (d) all above (e) both (a) and (b)

108. Packing credit advances is normally allowed for :

(a) 90 days (b) 60 days (c) 360 days (d) 180 days (e) as per requirement of the exporter

109. `Normal Transit Period ' in the context of export finance means:

(a) the number of days the documents take to reach destination

(b) the gap between period taken by the ship and the documents to reach destination

(c) the number of days taken by a ship to complete a voyage

(d) the number of days fixed by FEDAI and is the average period normally involved from date of negotiation to credit to NOSTRO account.

(e) either (a)or (b)

110. For facilities granted up to 30.6.2010, rate of interest on post shipment credit in rupees upto 180 days in respect of usance bills is :

(a) 12% (b) 15% (c) not exceeding BPLR

(d) not exceeding BPLR minus 2.5% (e) not exceeding BPLR plus 1.5%

111. Refinance for export credit from RBI is available for how many days?

(a) 90 days . (b) 180 days (c) 360 days (d) 270 days- (e) None of these

112. Refinance against eligible export finance is available from :

(a) RBI (b) IDBI (c) ECGC (d) Exim Bank (e) None of these

113. On PCFC refinance is available to the extent of % of outstanding PCFC.

(a) 15% (b) 50% (c) 25% (d) Nil (e) None of these

114. For facilities granted up to 30.6.2010Concessional interest rate on Post shipment credit in rupees is permitted up to:

(a) 180 days (b) 90 days (c) 270 days (d) 360 days (e) None of these

REMITTANCES

115. Which of the following is not correct regarding Liberalised Remittance Scheme?

(a) Amount can be remitted for capital as well as current account transactions

(b) Maximum amount that can be remitted in a financial year is restricted to USD 200,000

(c) Remittance for gift and donation will be within USD 200,000 permitted under LRS

(d) Bank can allow advance to a resident individual for making remittance under this scheme

(e) None of these

116_ For outward remittance for medical expenses, estimate from the doctor or hospital is required if the remittance is more than USD : (a) 1 lac (b) 5 lac (c) 10 Lac (d) none of these as it is required in all cases

117. What is the maximum amount of inward remittance that can be done by a resident individual?

(a) USD 1 Lac (b) USD 5 lac (c) USD 10 Lac (d) None as there is no limit

118. How much amount can be released for remittance abroad for education on declaration basis and withou estimate from educational institution?

(a) USD 1 Lac (b) USD 5 lac (c) USD 10 Lac (d) None as there is no limit

119. Which of the following is true?

(a) If a bank has oversold position, Bank will gain if the rate of foreign currency rises.

(b) If a bank has oversold position, Bank will gain if the rate of foreign currency declines

(c) If a bank has oversold position, Bank will lose if the rate of foreign currency declines

(d) If a bank has overbought position, Bank will gain if the rate of foreign currency declines

(e) None of these

IMPORTS

120. ADs may allow advance remittance for import of goods without any ceiling. However, if the amount of

advance remittance exceeds USD50,00,000 or its equivalent it is mandatory to obtain-

(a) unconditional irrevocable stand by UC of an international bank of repute situated outside India

(b) guarantee from an international bank of repute situated outside India

(c) guarantee of an AD in India, if such guarantee is issued against counter guarantee of an international bank of repute situated outside India

(d) any one of the above (e) either (a) or (b) only

121. BEF statement containing details of remittance exceeding USD1,00,000 where evidence of import is

not furnished within 6 months from date of remittance is submitted by ADs to RBI on:

(a) monthly basis by 10th of the following month

(b) quarterly basis by 15th of the month following close of quarter

(c) half yearly basis for March/ September by 15th of succeeding month

(d) half yearly basis as of June/ December by 15th of succeeding month (e) none of these

122. Crystallisation of import bill under UC means:

(a) bill is scrutinised whether it is as per UC terms or not

(b) it is ensured that currency of IJC and insurance is the same or not

(c) converting bill amount into Indian rupees and deciding customer's liability on due date in case of usance bill and on 10th day from date of receipt in case of demand bills.

(d) none of the above as the concept is gone with the termination of PSCFC

123. Application for making payment towards imports into India has to be made to authorised dealers by importers in : (a) ENC (b) R-3 (c) Form A-1 (d) Form A-4 (e) none of the above

124. Advance remittance for import of goods into India is to be allowed after obtaining guarantee from an international bank of repute situated outside India or guarantee of an AD in India against counter- guarantee of an international bank when amount of advance remittance exceeds:

(a) US $ 10,000 (b) US $ 25,000 (c) US $5,000 (d) US $ 15,000 (e) US $ 50,00,000

125. How much advance remittance is allowed for import of services without guarantee of a

 reputed international bank?

(a) USD 1 Lac (b) USD 5 lac (c) USD 10 Lac (d) None as there is no limit

MISCELLANEOUS

126. Which of the following types of Bill of Lading is not acceptable by a bank under LC?

(a) On Board (b) Clean (c) Charter Party (d) AN of these (e) None of these

127. Interest Subvention is available on rupee export credit at the rate of 2% for loan up to Rs but interest rate after subvention should not be less than 7%.

(a) Rs 3 lac (b) Rs 5 lakh (c) Rs 10 lakh (d) Rs 100 lakh (e) None of these

- 128. Interest rate charged by RBI on export refinance to banks is at the rate of :

(a) Bank Rate (b) Repo Rate (c) Reverse Repo Rate (d) Base Rate (e) None of these

129. Export Refinance is provided by RBI at the rate of _ % of eligible outstanding export credit? (a) 15% (b) 25% (c) 50% (d) 100% (e) None of these

130. R Return is submitted to RBI on which of the following dates of the month?

(a) 7th and 2151 (b) 15th  & last day (c) 10th, 20th and last day (d) None of these 

131.Overdue import demand bills and usance bills are crystalised on which dates?
(a) 10th day & due date (b) 15th day and 30th day  (c) 30th day and 60th day (d) 10th day and 60th day (e) None of these

132. Which of the following is incorrect regarding export declaration forms?

(a) GR form is used for declaration of exports other than by post where custom office not linked to EDI

(b) Export Declaration form is not required to be submitted for exports up to USD 25000.

(c) Softex form is used for declaration of export of software in physical or electronic form.

(d) None of these (e) All of these

Answer-

1	D	2	C	3	D	4	B	5	D	6	D	7	E	8	C	9	D	10	D
11	C	12	A	13	B	14	A	15	D	16	C	17	A	18	B	19	D	20	C
21	A	22	B	23	B	24	A	25	C	26	B	27	D	28	E	29	B	30	C
31	A	32	A	33	B	34	D	35	B	36	A	37	B	38	C	39	D	40	D
41	D	42	A	43	C	44	A	45	A	46	A	47	B	48	D	49	A	50	A
51	A	52	B	53	B	54	B	55	A	56	A	57	B	58	C	59	A	60	D
61	D	62	D	63	A	64	C	65	E	66	A	67	E	68	D	69	D	70	A
71	B	72	A	73	E	74	B	75	B	76	D	77	C	78	E	79	C	80	D
81	A	82	C	83	D	84	B	85	D	86	B	87	E	88	D	89	D	90	D
91	D	92	E	93	A	94	B	95	D	96	B	97	A	98	C	99	A	100	D
101	E	102	A	103	E	104	D	105	B	106	B	107	E	108	E	109	D	110	D
111	B	112	A	113	D	114	A	115	D	116	A	117	D	118	A	119	B	120	D
121	D	122	C	123	C	124	E	125	B	126	C	127	E	128	B	129	A	130	B
131	A	132	C