Foreign Exchange 1
Foreign Exchange 1
Foreign Exchange 1
1.
their
foreign
currency
transactions
to
3.
4.
5.
6.
7.
8.
9.
A quotation in which the home currency unit is the standard unit and the rate
is expressed in variable units of foreign currency is called
_________________
(a) direct rate
10. A rate of exchange established between any two currencies on the basis of
the respective quotation of each currency in terms of a third currency is
known as
(a) cross rate
11. When branches pass forex transactions at provisional rates, the entries are
passed by debit to
(a) Forex Clearing gen. a/c
(c) IBIT
13. The rate applicable for an export bill tendered for negotiation is
_________________
(a) bill buying rate
14. The rate quoted for inward remittances by TT/DD, where the cover fund has
already been credited to our Nostro a/c is
(a) TT buying rate
15. How many types of rates are quoted in respect of foreign exchange sales
transactions?
(a) 5
(b) 4
(c) 3
(d) 2
16. How many types of rates are quoted in respect of foreign exchange
purchase transactions?
(a) 6
(b) 5
(c) 4
(d) 3
17. When foreign currency notes are purchased by branches not designated to
retain foreign currencies, the rate applied while debiting the Designated
Branch through Branch Clearing General Account is ____________
(a) TT buying rate
rate
19. The transactions of the Bank undertaken to sell the surplus and buy the
required foreign currencies in order to keep its position square are known
as
(a) cover operations
(b) merchant transactions
(c) exchange transactions
(d) forward transactions
20. A foreign currency travellers cheque is valid for
(a) 3 months
(c) 1 month
therein
(b) 6 months
(d)
22. A traveller returning from abroad should surrender his unused foreign
exchange in excess of USD 2000 to an authorised dealer within:
(a) 90 days of his return to India, if he is holding foreign currency notes, and
180 days if he is holding travellers cheques
(b) 60 days of his return to India
(c) 30 days of his return to India
(b) Form A1
(c) Form A4
(d) Form A3
(b) 6
(c) 7
(d) 2
(b) Nostro
(c) Vostro
(d) no one
31. The buyer or importer who procures a letter of credit from his banker is
called
(a) opener of the credit
32. The bank through whom the credit is advised and who confirms the letter of
credit when required and negotiates the documents tendered is called
(a) Opening Bank
33. An L/C which can be amended or cancelled by the Issuing Bank at any time
prior to its expiry without notice to the Beneficiary is called a / an
(a) Confirmed L/C
34. A L/C that cannot be cancelled or amended without the consent of the
parties concerned is known as a / an
(a) Confirmed L/C
35. When the Advising Bank, at the request of the issuing Bank, adds its
confirmation which would constitute a definite undertaking by the former the
L/C is known as a / an
(a) Irrevocable L/C
(b) Transferable LC
(c) Revolving LC
37. An LC which authorises the Advising Bank, to transfer, at the request of the
Beneficiary ( First Beneficiary) the credit available in whole or in part to one
or more other beneficiaries ( Second Beneficiaries) is known as
(a) Anticipatory LC
(b) Revolving LC
(c) Transferable LC
(c) Revolving LC
(b) False
48. For making payment towards imports into India, application from importers is
obtained on
(a) Form A1
(b) Form A4
(c) Stat 4
(d) R 6
(b) quarterly
(b) FEDAI
(d) IBA
(e) GOI
53. Agencies involved in export finance are controlled by
(a) RBI
(b) IDBI
(c) ECGC
(b) FD 125
(c) FD 123
(d) FD 124
(b) 6
(c) 12
(c) Others
(b) 30:70
(c) 50:50
(d) 20:80
70. Loans against NRE TDRs can be granted upto Rs. ____ to the NRI
depositor.
(a) Rs.25,000
(b) Rs.50000
(c) Rs.1,00,000
(d) No ceiling
74. Interest for the transit period has to be recovered in the case of
(a) all purchases
(b) US Dollar
77. RBI will buy (spot and forward) the following currency(ies)
(a) Pound Sterling(b)
US Dollar
(b) $2,000/
(c) $4,000/-
79. Under FCNB Deposit scheme who absorbs the exchange risk involved
(a) The bank that accepts such deposits
(c) GOI
(b) RBI
(b) 75 Kg
(c) 200 Kg
(d) 100 Kg
85. Persons of Indian Origin but with foreign citizenship are freely permitted to
purchase immovable property in India
True / False
86. Commercial Paper issued by an Indian Company in favour of NRIs will be on
_______ and _______ basis.
(a) non-repatriable, transferable
90. The negotiating bank, while claiming reimbursement from another bank
should certify that the terms and conditions of the letter of credit have been
complied with
True / False
91. Unless otherwise specified in the credit, Bank can accept as originals, the
documents produced by reprographic systems, computerised systems or as
carbon copies, if marked as originals.
True / False
92. Compounding of interest on FCNB deposit is done
(a) monthly
(b) quarterly
(c) half-yearly
(d) yearly
93. Granting of loans to third parties against NRI deposits by ADs require
sanction from
(a) RBI
(b) IBA
(c) FEDAI
94. A foreign citizen of Indian origin who is having NRE STDR for Rs.20.00 lacs
with you asks for a loan of Rs.12.00 lacs against STDR to buy a house
(a) the loan can be granted.
(b) the loan cannot be granted as the loan amount exceeds the limit of
Rs.5.00 lacs
(c) prior permission from controllers necessary
(d) none of the above
95. ADs may grant loans and overdrafts to a foreign national without reference
to RBI
(a) without any limit as long as the loan is collaterally secured.
(b) within a ceiling of Rs.5.00 lacs
(c) only to the extent of Rs.1 lac for personal purposes.
96. What is the validity period for a foreign draft?
(a) 3 months
(c) 6 months
(d) 30 days
97. An NRI is eligible for wealth tax exemption for _______ years after his/her
return to India
(a) 5 years
(b) 3 years
(c) 1 year
(d) 7 years
98. How much foreign currency Mr. Ramamoorthy residing in T. Nagar, Chennai
can keep with him?
(a) US $ 500 or its equivalent
(b) US$ 1000 or its equivalent
(c) US $ 2000 or its equivalent
(d) US $ 5000 or its equivalent
99. Export Credit should reach_____% of the net bank credit.
(a) 5%
(b) 10%
(c) 12%
(d) 17%
101. Deposits under FCNB scheme can be opened for a maturity period of
a)
cannot open
(b) 7
(c) 15
(d) 30
103. Branches are to recover interest on EBR loans upfront and on PCFC loans
at quarterly intervals or on closure thereof and credit to
(a) Branch Interest A/c.
(b) F.D. Kolkata
(c) Branch Discount A.c.
(d) Exchange Account
104. Inward Remittance Certificate can be issued only on security paper, if the
amount of remittance exceeds
(a) Rs.10,000/-
(b) Rs.15,000/-
(c) Rs.25,000/-
(d) Rs.50,000/-
(b) Rs.5,000/-
(b) Quarterly
(d) Annual
107. A person bringing in foreign exchange in the form of foreign currency notes
and travellers cheques have to declare in form CDF in the following cases
(a) amount exceeds US $2,000 or its equivalent
(b) amount exceeds US $10,000 or its equivalent
(c) if the amount of foreign currency notes exceeds US $ 5,000 and the
amount of foreign currency notes plus travellers cheque exceeds US $
10,000/(d) Need not declare
108. Margin that is to be retained on loans granted to the depositor against
FCNRB deposits is
(a) 10%
(b) 15%
(c) 25%
(d)
No margin
(b) 10%
(c) 25%
(d) No margin
(b) 10
(c) 12
(d) 16
111. Under FCNB scheme, Fixed Notional Rate (FNR) for the US $ for the
purpose of accounting in branch books is
(a) Rs.40/-
(b) Rs.44/-
(c) Rs.45/-
(b) 20 kg
(c) 10 kg
(d) 30 kg
113. NRIs are permitted to invest on non-repatriation basis with the prior
permission of RBI/SEBI in Money Market Mutual Funds (MMMFs) floated by
(a) Domestic public/private sector companies
(b) Commercial banks and Public/Private sector, financial institutions
(c) Both by (a) and (b).
(c) Not permitted to invest in MMMFs
114. Import bills may be received by the banker of the buyer directly from
overseas sellers, if the bank is satisfied and if the value of such import bill
does not exceed _______________
(a) Rs.10,000/(d) Rs.2 lacs
(c) US $ 10,000/(d) US $ 25,000/-
115. Facilities such as PCFC, EEFC, and discounting of bills abroad are available
for exporters for transactions in ACU dollar
Yes / No
116. Transactions between India and Nepal will be routed through revised ACU
mechanism
Yes/No
117. Request for cash payment against FTC/FCN may be accepted upto the
extent of US$ _______________ or its equivalent per transaction at non
metro centres
(a) US $ 2,000
(b) US $ 1,000
(c) US $ 500
(d) International
Division,
(b) Monthly
(d) Yearly
(b) PP Form
122. ADs may allow advance remittance for import of goods upto a ceiling of
(a) US $ 5,000
(b) US $ 10,000
(c) US $ 20,000
(d) None
(b) 5000
(c) 1000
(d) 500
are
reported
to
Treasury,
(a) FOREX 3
(b) DATANET
(c) ELENOR
(d) SWIFT
Mumbai
through
(b) 3
(c) 2
(d) 1
(b) $15000/-
(c) $5000/-
(d) $1000/-
129. On return from abroad, a traveller should surrender his unspent travellers
cheques, within ________ days from date of return
(a) 90
(b) 180
(c) 30
(d) 60
(b) Frankfurt
(c) Brussels
(b) Once
132. Export usance bills should be crystallised on ____________ day from due
date
(a) 15th
(b) 30th
(c) 45th
(d) 60th
(c) TT buying
(d) TT selling
(b) TT buying
(b) 25 days
(c) 30 days
(d) 35 days.
(c) DGFT
(d) ECGC
(b) Fortnightly
(c) Monthly
(d) Quarterly
139. Which of the following is correct about transactions above Rs.2.5 lacs but
lessthan Rs.5 lacs?
a)
b)
c)
d)
140. Which of the following documents evidences import of goods into India?
a)
b)
Commercial invoice
c)
Bill of Lading
d)
Courier Receipt
b)
c)
d)
No period restriction.
142. A customer of your branch requests for release of foreign exchange for
travel to Kathmandu, Nepal,. How much will you release?
a)
USD 500
b)
USD 1000
c)
USD 5000
c)
USD 10000
e)
NIL
143. An NRI sells gold brought by him to residents against rupees. What can he
do with the rupee proceeds?
a)
b)
c)
c)
b)
10
c)
15
d)
21
___
145. The duplicate copy of GR/PP/SDF Forms is returned to the exporter under
the following circumstances.
a)
b)
c)
d)
RBI
b)
ECGC
c)
EXIM Bank
d)
147. Authorised Dealer may normally allow advance remittance for import of
goods without guarantee from an international bank of repute upto
a)
USD 5000
b)
USD 10000
c)
USD 25000
d)
USD 100000
148. What is the normal period within which physical import of goods into India
should be made when advance payment is effected?
149. Despatch of encashed foreign currency notes through post, (viz. Registered
Insured Post) should be restricted to
a) Rupee value of foreign currency notes per packet not to exceed Rs.25
lacs
b) Rupee value of foreign currency notes per packet not to exceed Rs.1
lac
c) Rupee value of foreign currency notes per packet not to exceed
Rs.10000
d)
No restriction.
150. ________ has introduced Uniform Customs and Practices for Documentary
Credits (UCPDC)
a)
RBI
b)
FEDAI
c)
b)
International
c)
d)
Commercial
152. As per RBI guidelines, banks are to provide export finance to the extent of
a)
b)
c)
d)
No stipulation.
b)
c)
d) should be preserved by A.D for a period of 1 year from the date of its
verification by internal Inspectors/Auditors
154. Importer Exporter code number is allotted by
a)
RBI
b) DGFT
e)
c) EXIM BANK
d)
ECGC
b) can hold a Resident Foreign Currency a/c to keep his foreign currency
assets
c)
both a) & b)
e)
d)
a) & b)
157. An Indian citizen going abroad on a private visit to countries other than
Nepal & Bhutan is eligible for foreign exchange
a)
b)
c)
d)
158. An Indian citizen going abroad on a private visit to Nepal & Bhutan is eligible
for foreign exchange
a)
b)
c)
d)
No foreign exchange
159. An Indian citizen going abroad for higher studies is eligible for foreign
exchange
a)
is
Upto USD 5000 or upto the estimate of the institution abroad, whichever
higher.
a)
b)
c)
d)
No foreign exchange
161. An Indian citizen going abroad on emigration is eligible for foreign exchange
a) Upto USD100000 or amount prescribed by the country of immigration
on the basis of visa
b)
No foreign exchange.
162. An Indian citizen going abroad for medical treatment is eligible for foreign
exchange
a) Upto USD 10000 on self declaration basis and in excess thereof as per
the estimate from a doctor or hospital in India or overseas
b) Upto USD 20000 and in excess thereof as per the estimate from a
doctor or hospital in India or overseas
c) Upto USD 30000 and in excess thereof as per the estimate from a
doctor or hospital in India or overseas
d) Upto USD 100000 and in excess thereof as per the estimate from a
doctor or hospital in India or overseas.
163. An Indian citizen is eligible for foreign exchange for miscellaneous purpose
without production of any document upto
a)
USD 500
b)
USD 1000
c)
USD 2000
d)
USD 5000
164. An Indian citizen is eligible for foreign exchange for gift / donation
annum upto
per
a)
b)
c)
d)
165. An Indian citizen going abroad for medical treatment is eligible for foreign
exchange in addition to the medical expenses as per estimate
a) upto USD 10000 per person for meeting boarding, lodging & travel
expenses of the patient and the attender
b) upto USD 25000 per person for meeting boarding, lodging & travel
expenses of the patient and the attender
c) upto USD 50000 per person for meeting boarding, lodging & travel
expenses of the patient and the attender
d) upto USD 100000 per person for meeting boarding, lodging & travel
expenses of the patient and the attender.
166. Sale proceeds of immovable property acquired in India by an NRI out of
repatriable funds
a)
b)
cannot be repatriated
c)
d)
167. What is the time limit within which the bank has to sanction a fresh /
enhancement export credit proposal ?
a) 30 days
b) 45 days
c) 15 days
d) 10 days
.
168. Export Packing Credit is normally sanctioned for a period of
a) 90 days
b) 180 days
c) 270 days
d) 365 days
169. For travellers proceeding to Iraq and Libya, exchange in the form of foreign
currency notes and coins may be sold up to
a) US $ 2000 or its equivalent
b) US $ 5000 or its equivalent
c) Unlimited
d) No foreign currency notes/coins to be sold
170. Exchange Earners Foreign Currency (EEFC)Account can be maintained
a) Only in the form of non-interest bearing current account
b) Only in the form TDR/STDR
c) Only in the form of SB A/c
d) Any one of above
171. The cost of premium in respect of Whole Turnover Post-Shipment
Guarantee is
a) Recovered from the exporter
b) Borne by the Central Government
c) Absorbed by the bank
d) Shared by the exporter and the bank at 50:50 basis
172. Refinance for PCFC is available to the banks from
a) No refinance is available
b) RBI
c) EXIM Bank
b) EXIM bank
c) DGFT
b) EXIM bank
d) Ministry of Commerce, Govt of India
176. The following risk is not covered under Specific Shipment Policy-Short Term
(SSP-ST)
a)
b)
c)
d)
b) Euro only
c) Any one of the four currencies viz US$, GBP, EURO, YEN
d) Both a and b.
178.A Student going abroad for studies is eligible for all facilities available to NRI.
Therefore
a) he has to close educational loan if any already availed by him
b) he has to close other loans, if any, availed by him
c) need not close educational loan
d) he may continue all the loans
KEY
1.
20. d
40. c
60. c
79. a
98. c
117. c
2.
21. a
41. d
61. d
80. True
99. c
118. c
3.
22. a
42. c
62. c
81. Yes
100. b
119. c
82. d
101. d
120. c
4.
23. b & c
43. b
63. a
83. d
102. a
121. c
5.
24. b
44. b
64. c
84. d
103. a
122. d
6.
25. a
45. c
65. c
85. True
104. d
123. a
7.
26. c
46. b
66. d
86. Fals
e
105. a
124. a
8.
27. d
47. True
67. a
106. c
125. c
87. a
107. c
126. c
9.
28. a
48. a
68. a
88. d
108. a
127. d
69. b
89. a
109. c
128. a
70. d
90. True
110. d
129. b
71. d
91. True
111. b
130. c
72. c
92. c
112. c
131. b
73. d
93. d
113. c
132. b
74. b
94. a
114. d
133. d
75. Yes
95. c
115. Yes
134. b
76. b
96. b
116. No
135. b
77. b
97. d
10. a
11. c
29. a
30. c
49. d
50. c
12. d
31. a
51. b
13. a
32. b
52. c
14. a
33. d
53. d
15. b
16. a
34. b
35. c
54. c
55. c
17. c
36. d
56. b
18. d
37. c
57. a
19. a
38. b
58. c
39. a
59. c
78. d
136. c
137. c
138. b
KEY
139. a
140. a
141. c
142. e
143. d
144. d
145. d
146. d
147. d
148. Within 6 months from the date of remittance (36 months for capital goods).
149. c
150. d
151. b
152. b
153. d
154. b
155. c
156. d
157. b
158. d
159. d
160. b
161. b
162. d
163. a
164. b
165. b
166. a
167. b
168. b
169. b
170. a
171. c
172. a
173. b
174. d
175. c
176. d
177. c
178. d