SOLVED CAIIB COMBINED PAPER 27:
1. When Nostro account of the bank is credited later than the payment to the tenderer of foreign exchange, which of the following rates will not be applied?
(i) TT Buying Rate,
(ii) Bills Buying Rate,
(iii) TT Selling Rate
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
2. A license to deal in foreign exchange to authorized dealers is not issued by ......
(i) RBI, (ii) DGFT, (iii) FEDAI
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
3. The difference between buying and selling rate quoted by an Authorised Dealer is not called as ......
(i) Dealers spread,
(ii) Dealer's Margin,
(iii) Dealer's commission
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
4. Post-shipment finance in foreign currency is liquidated by a bank out of:
a. FCNR funds available with the bank
b. Foreign exchange reserves of RBI
c. Discounting or re-discounting of bills under export bill re-discounting abroad
d. any of the above
Ans - c
5. In a perfect market, with no restriction on finance and trade, the ....... is the basic factor in arriving at the forward rate.
a. Fixed exchange rate
b. Interest factor
c. Interest rate differentials
d. Floating Exchange rate
Ans - b
6. Which of the following shipments out of India are exempt from export declaration forms?
a. Goods or software, when accompanied by a declaration by the exporter that they are not more than USD 50000 in value
b. Gifts of goods, valuing not over Rs.50000 along with declaration of exports
c. Gifts of goods, valuing not over Rs.500000 along with declaration of exports
d. Goods not exceeding in value USD 10000 per transaction exported to Myanmar under bilateral trade agreement
Ans - c
7. All foreign exchange transactions in India are governed by :
a. Foreign Exchange Regulation Act, 1973
b. Reserve Bank of India Act, 1934
c. Foreign Exchange Management Act, 1999
d. Banking Regulation Act,1949
Ans - c
8. Restricted money changers are the firms/organizations authorized to undertake ......
(i) purchase of foreign currency notes from the public, (ii) purchase of foreign coins and travellers' chequesfrom the public,
(iii) sale and purchase of foreign currency notes, coins, travellers' cheques to / from the public
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
9. When there is sale of foreign exchange, but import bills are not handled, which rate will not be applied?
(i) TT Buying Rate,
(ii) TT Selling Rate,
(iii) Bills Selling Rate
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
10. An ADR is receipt or certificate issued by a ...... bank, representing title to specified no.of shares of a ...... company.
a. non-US,US
b. European,US
c. US non-US
d. US,US
Ans - c
11. Exchange of payments in different currencies at pre-determined exchange rates are called as ...... Swaps.
a. Financial
b. Interest
c. Currency
d. Forex
Ans - c
12. Due to vastness of the market, operating in different time zones, most of the Forex deals in general are done on ........
a. TOM basis
b. SPOT basis
c. Ready or cash
d. Forward
Ans - b
(i) TT Buying Rate,
(ii) Bills Buying Rate,
(iii) TT Selling Rate
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
2. A license to deal in foreign exchange to authorized dealers is not issued by ......
(i) RBI, (ii) DGFT, (iii) FEDAI
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
3. The difference between buying and selling rate quoted by an Authorised Dealer is not called as ......
(i) Dealers spread,
(ii) Dealer's Margin,
(iii) Dealer's commission
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
4. Post-shipment finance in foreign currency is liquidated by a bank out of:
a. FCNR funds available with the bank
b. Foreign exchange reserves of RBI
c. Discounting or re-discounting of bills under export bill re-discounting abroad
d. any of the above
Ans - c
5. In a perfect market, with no restriction on finance and trade, the ....... is the basic factor in arriving at the forward rate.
a. Fixed exchange rate
b. Interest factor
c. Interest rate differentials
d. Floating Exchange rate
Ans - b
6. Which of the following shipments out of India are exempt from export declaration forms?
a. Goods or software, when accompanied by a declaration by the exporter that they are not more than USD 50000 in value
b. Gifts of goods, valuing not over Rs.50000 along with declaration of exports
c. Gifts of goods, valuing not over Rs.500000 along with declaration of exports
d. Goods not exceeding in value USD 10000 per transaction exported to Myanmar under bilateral trade agreement
Ans - c
7. All foreign exchange transactions in India are governed by :
a. Foreign Exchange Regulation Act, 1973
b. Reserve Bank of India Act, 1934
c. Foreign Exchange Management Act, 1999
d. Banking Regulation Act,1949
Ans - c
8. Restricted money changers are the firms/organizations authorized to undertake ......
(i) purchase of foreign currency notes from the public, (ii) purchase of foreign coins and travellers' chequesfrom the public,
(iii) sale and purchase of foreign currency notes, coins, travellers' cheques to / from the public
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
9. When there is sale of foreign exchange, but import bills are not handled, which rate will not be applied?
(i) TT Buying Rate,
(ii) TT Selling Rate,
(iii) Bills Selling Rate
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
10. An ADR is receipt or certificate issued by a ...... bank, representing title to specified no.of shares of a ...... company.
a. non-US,US
b. European,US
c. US non-US
d. US,US
Ans - c
11. Exchange of payments in different currencies at pre-determined exchange rates are called as ...... Swaps.
a. Financial
b. Interest
c. Currency
d. Forex
Ans - c
12. Due to vastness of the market, operating in different time zones, most of the Forex deals in general are done on ........
a. TOM basis
b. SPOT basis
c. Ready or cash
d. Forward
Ans - b