SOLVED CAIIB COMBINED PAPER 28:
1. Account of a bank in India with a foreign correspondent bank abroad in foreign currency is not called as ......
(i) Loro, (ii) Vostro, (iii) Nostro
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
2. Who is not eligible to take Export turnover policy from ECGC?
(i) Exporters who contribute not less than Rs. 10 lakhs towards premium,
(ii) Exporters with turnover not exceeding Rs 10 lakhs per year,
(iii) Exporters who contribute not more than Rs. 10 lakhs towards premium
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
3. Foreign citizen of Indian origin is not called as ......
(i) PIO, (ii) NRI, (iii) Resident Indian
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
4. The forward premium and discount are generally based on the .........of the two currencies involved.
a. Market rate
b. Future rate
c. Interest rate differentials
d. Ready or cash
Ans - c
5. A Bank received an LC for USD 2 Million issued by MT 700 and opened on Jan 25, 2015. The credit calls for shipment of 200 tonnes of good quality wheat cultivated in Punjab. What is the time available for issuing bank for examination of documents under UCP600?
a. 21 days
b. Reasonable time not exceeding 7 days
c. Reasonable time not exceeding 7 banking days
d. Five banking days
Ans - d
6. Who fixes the cap on the total amount of ECB, from year to year:
a. RBI
b. FEDAI
c. DGFT
d. Govt. of India
Ans - d
7. A 'Revolving Credit' doesn't means a letter of credit ......
(i) which is available for use in any country,
(ii) covering many shipments up to a particular period of time or a particular amount or both,
(iii) which can be easily transferred by the beneficiary to his suppliers
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
8. A 'Red Clause' LC is one in which ......
(i) the beneficiary can avail pre-shipment finance up to the amount specified in LC,
(ii) there are certain restrictive clauses as to period of shipment negotiation of bills etc
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - a
9. A 'Back to Back' letter of credit is ......
(i) one on the strength of which another bank's guarantee is obtained,
(ii) a second set of fresh LC opened in favor of second beneficiary on the strength of original LC
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - b
10. The advance allowed to a party for manufacturing or processing the goods for export there of is called:
a. cash credit advance
b. overdraft advance
c. pre-shipment advance
d. post shipment advance
Ans - c
11. Guidelines for export and import credit are governed by ......
a. RBI
b. DGFT
c. SEBI
d. FEDAI
Ans - b
12. Concessional rate of interest for post-shipment finance in case of bill purchase is allowed for:
a. actual period of realization
b. normal transit period
c. normal transit period +overdue period,if the bill is overdue
d. any of the above, whichever is later
Ans - b
(i) Loro, (ii) Vostro, (iii) Nostro
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
2. Who is not eligible to take Export turnover policy from ECGC?
(i) Exporters who contribute not less than Rs. 10 lakhs towards premium,
(ii) Exporters with turnover not exceeding Rs 10 lakhs per year,
(iii) Exporters who contribute not more than Rs. 10 lakhs towards premium
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
3. Foreign citizen of Indian origin is not called as ......
(i) PIO, (ii) NRI, (iii) Resident Indian
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
4. The forward premium and discount are generally based on the .........of the two currencies involved.
a. Market rate
b. Future rate
c. Interest rate differentials
d. Ready or cash
Ans - c
5. A Bank received an LC for USD 2 Million issued by MT 700 and opened on Jan 25, 2015. The credit calls for shipment of 200 tonnes of good quality wheat cultivated in Punjab. What is the time available for issuing bank for examination of documents under UCP600?
a. 21 days
b. Reasonable time not exceeding 7 days
c. Reasonable time not exceeding 7 banking days
d. Five banking days
Ans - d
6. Who fixes the cap on the total amount of ECB, from year to year:
a. RBI
b. FEDAI
c. DGFT
d. Govt. of India
Ans - d
7. A 'Revolving Credit' doesn't means a letter of credit ......
(i) which is available for use in any country,
(ii) covering many shipments up to a particular period of time or a particular amount or both,
(iii) which can be easily transferred by the beneficiary to his suppliers
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
8. A 'Red Clause' LC is one in which ......
(i) the beneficiary can avail pre-shipment finance up to the amount specified in LC,
(ii) there are certain restrictive clauses as to period of shipment negotiation of bills etc
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - a
9. A 'Back to Back' letter of credit is ......
(i) one on the strength of which another bank's guarantee is obtained,
(ii) a second set of fresh LC opened in favor of second beneficiary on the strength of original LC
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - b
10. The advance allowed to a party for manufacturing or processing the goods for export there of is called:
a. cash credit advance
b. overdraft advance
c. pre-shipment advance
d. post shipment advance
Ans - c
11. Guidelines for export and import credit are governed by ......
a. RBI
b. DGFT
c. SEBI
d. FEDAI
Ans - b
12. Concessional rate of interest for post-shipment finance in case of bill purchase is allowed for:
a. actual period of realization
b. normal transit period
c. normal transit period +overdue period,if the bill is overdue
d. any of the above, whichever is later
Ans - b