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Test Supplement 11 Forex
Test Supplement 11 Forex
Forex
No Multiple Choice Question Ans
1 What is the implementation date of FEMA 1999? d
a. 31.05.1999
b. 01.06.1999
c. 31.05.2000
d. 01.06.2000
2 Which of the following is not a correct type of category of Authorised Dealers d
under FEMA 1999?
a. Authorised Dealer category I
b. Authorised Dealer category II
c. Authorised Dealer category III
d. Authorised Dealer category IV
3 What is the full form of UCPDC? b
a. Unilateral Customs and Practices for Demand Credit
b. Uniform Customs and Practices for Documentary Credit
c. Uniform Customs and Principles for Documentary Credit
d. Uniform Customs and Practices for Demand Credit
4 Which of the following authority regulates Foreign Trade in India? a
a. DGFT
b. SEBI
c. EXIM Bank
d. RBI
5 Pre-shipment credit in foreign currency can be allowed at which of the following c
interest rates?
a. EURIBOR
b. EURO LIBOR
c. LIBOR
d. All of the above
6 In case of deemed exports, the advance at post-shipment period is required to a
be liquidated within how many days?
a. 30 days
b. 60 days
c. 90 days
d. 180 days
7 Under Gold Card Scheme for exporters, the banks are required to sanction a b
standby limit of not less than ……………….. of the assessed limit
a. 10%
b. 20%
c. 25%
d. 30%
8 Who was the chairman of High Level Committee on Balance of Payment? d
a. Dr Manmohan Singh
b. Deepak Mohanty
c. Dr Y V Reddy
d. Dr C Rangarajan
9 What is LERMS in terms of exchange rate mechanism? c
a. Liberalised Exchange Rate Monitoring System
b. Liberalised Export Regime & Monitoring System
c. Liberalised Exchange Rate Management System
d. None of the above
10 Under LERMS what percentage of Forex was required to be converted at RBI b
official rate?
a. Nil
b. 40%
c. 60%
d. 100%
11 Which currency is known as base currency in terms of Exchange Rate c
Mechanism?
a. The currency with lowest value is base currency
b. The currency which is freely convertible
c. One unit of fixed amount of currency
d. None of the above
12 Which currency is known as Terms Currency in terms of Exchange Rate a
Mechanism?
a. The currency which is quoted as variable amount
b. The currency which is freely convertible
c. Currency which dictates terms of market
d. None of the above
13 What is known as two way quote in exchange rate mechanism? b
a. Quoting the rates both with the buyer and with the seller
b. Quoting the buying and selling rate at the same time
c. Both of the above
d. None of the above
14 Foreign Currency Non-Resident (Banks) account can be opened in the name of d
which of the following?
a. Non-resident Indian
b. Person of Indian origin
c. Overseas Corporate Bodies
d. Both a and b
15 Drawal of foreign Exchange by a person in India is not permitted in respect of d
which of the following?
a. Transactions with persons resident in Nepal and Bhutan
b. Travel to Nepal and Bhutan
c. Transactions given in Schedule 1 of FEMA
d. All of the above.
16 Which of the following methods is applied for quoting the foreign exchange b
rates in India?
a. Cross rates
b. Direct rate
c. Indirect rate
d. Buying rate
e. Selling rate
17 Overseas Corporate Bodies means: b
a. 50% by NRIs and balance by resident Indians.
b. 60% by NRIs irrespective of balance holdings
c. 70% by NRI
d. 60% by NRIs and balance by Government
18 Under, UCPDC-600, the term “ Middle” of a month shall be construed as c
a. Second week of the month
b. Third week of the month
c. 11th to 20th day of the month
a. 5th to 15th day of the month
19 As per the article 5 of the UCPDC-600, Banks deals with c
a. Goods and services
b. Performance of the contract
c. Documents only
b. None of the above.
20 Repatriation of funds held in NRO Account can be done upto………….. c
a. USD 10000 per FY without payment of tax
b. USD 100000 per FY after payment of tax
c. USD 1 million per FY after payment of tax
d. Repatriation can‟t be done from NRO account
21 M/s Arun Exports has achieved an export performance of $ 5million a
cumulatively in current plus previous two financial years. What will be its status
under FTP 2015-20?
a. One Star Export House
b. Two Star Export House
c. Three Star Export House
d. Four Star Export House
e. Five Star Export House
22 M/s Rajeev Exports which is a Small unit as per MSME classification has achieved a
an export performance of $ 2 million cumulatively in current plus previous two
financial years. What will be its status under FTP 2015-20?
a. One Star Export House
b. Two Star Export House
c. Three Star Export House
d. Four Star Export House
e. Five Star Export House
23 M/s Rajeev Exports which is a Small unit as per MSME classification has achieved a
an export performance of $ 20 million cumulatively in current plus previous two
financial years. What will be its status under FTP 2015-20?
a. One Star Export House
b. Two Star Export House
c. Three Star Export House
d. Four Star Export House
e. Five Star Export House
24 The Outstanding Export bills are to be reported to RBI at: b
a. Half yearly intervals at March and September
b. Half yearly intervals at June and December
c. Quarterly intervals at the end of the quarter
a. Fortnightly basis on 15th and last day of the month
25 An EEFC account can be opened as: b
a. Savings Bank account
b. Current Account
c. FD/KD accounts
b. SB/CA /FD/KD accounts
26 Under Whole-turnover packing Credit policy covered with ECGC i.e., ECIB-WTPC, c
the percentage of cover for Small Scale Exporter accounts:
a. 75% up to Grade percentage limit
b. 55% to 75% depending on the Claim percentage
c. 90% of the limit
c. 25 days
d. 3 days
40 The exporter should necessarily submit the export documents to the bank d
within:
a. 15 days from the date of the documents
b. 15 days from the date of shipment
c. 21 days from the date of the documents
d. 21 days from the date of shipment
41 In an international trade transaction, when the seller places the goods at the c
side of the ship at named port and also clears the goods for Export, which
Incoterms will be used?
a. FCA- Free Carrier
b. FOB – Free on Board
c. FAS – Free Alongside Ship
d. DAP – Delivery at
42 INCOTERMS issued by ICC, Paris is called as : b
a. Indian company terms
b. International Commercial Terms
c. International Contract terms
d. None of the above
43 Incoterms 2010 which is in practice now a days, is applicable since ……… b
a. 01.12.2010
b. 01.01.2011
c. 01.10.2010
d. 01.05.2011
44 How many Incoterms are prescribed under INCOTERMS 2010? b
a. 10
b. 11
c. 12
d. 13
45 Which of the following is not an Incoterms 2010 for exclusive sea and inland b
waterway transport?
a. FOB
b. CIP
c. CIF
d. CFR
46 Balance of Trade means: d
a. Net position of capital account
b. Current account balance
c. Imports less exports
d. Exclusion of liability
71 Which of the following is most preferred LC for an exporter: c
a. Revocable
b. Irrevocable and red clause
c. Irrevocable, confirmed and without recourse
d. Confirmed and standby
72 LC issued in lieu of bank guarantee, is called: c
a. Red clause LC
b. Green Clause LC
c. Standby LC
d. Revolving LC
73 Transferable Letter of credits can be transferred: b
a. Any number of times
b. Only once
c. 2 times
d. 5 times
74 The statutory authority which administers the Exchange Control in India: d
a. Ministry of commerce
b. DGFT
c. FEDAI
d. RBI
e. FEMA
75 In foreign Exchange transaction, which of the following is the basic buying rate: b
a. Bills Buying rate
b. TT Buying rate
c. FC buying rate
d. Direct rate
e. Interbank rate
76 Under UCPDC-600, branches of same bank in different countries are: b
a. Same bank
b. Different bank
c. Associate bank
d. Subsidiary bank
77 In respect of sale or purchase of foreign exchange, the following principal would c
be followed in direct rate:
a. Buy high
b. Sell low
a. The borrowing sum not to exceed USD 250000 or its equivalent from his
close relatives outside India
b. Minimum maturity period of the loan is one year
c. Loan is free of interest
d. Amount of loan is received by inward remittance in free forex through
normal banking channels or by debit to NRE/FCNR account of a non-
resident lender.
e. All the above
96 A person resident in India is allowed to retain foreign currency notes up to an b
amount of ________ or its equivalent :
a. No limit
b. USD 2000
c. USD 5000
d. USD 10000
97 Currency declaration form is a declaration given to custom authorities while c
entering India by any person if:
a. Aggregate value of Foreign exchange in the form of Currency notes, TCs,
exceeds USD 10000 or equivalent
b. Aggregate Value of Foreign Currency notes exceeds USD 5000 or its
equivalent
c. Both a and b
d. None of the above
98 The All-in-Cost ceilings for External Commercial Borrowings for the maturity b
period of three years and up to five years is:
a. 6 months LIBOR plus 200 bps
b. 6 months LIBOR plus 300 bps
c. 6 months LIBOR plus 450 bps
d. 6 months LIBOR plus 500 bps
99 In an export business, if the aggregate FOB realized value during the current and e
previous 2 financial years exceeds USD2000 million, then the export enjoys the
status of :
a. One Star Export house
b. Two Star Export house
c. Three Star Export house
d. Four Star Export house
e. Five Star Export house
100 The AD banks and Status holder exporters can self write off the unrealised b
Export bills up to:
a. 5% of the total export proceeds realized during previous calendar year
b. 10% of the total export proceeds realized during previous calendar year
c. 5% of the total export proceeds realized during previous financial year
d. 10% of the total export proceeds realized during previous financial year
e. No write off is permitted
101 The Authorised Dealers should crystallize the overdue export bills from foreign b
currency liability to Rupee liability by applying:
a. Bill selling rate
b. TT selling rate
c. FC selling rate
d. TT buying rate
102 In a letter of credit, by adding a confirmation, the confirming bank undertakes c
the responsibility similar to that of:
a. Negotiating bank
b. Advising bank
c. Issuing bank
d. Both b and c
103 Pre-shipment Credit in Foreign Currency is allowed at ________ related interest a
rates:
a. LIBOR
b. SIBOR
c. EURIBOR
d. MIBOR
104 Which of the form does not match its purpose: d
a. ETX- Seeking extension in realisation of bills from RBI
b. XOS- Statement of exports bills outstanding more than 6 months
c. EFC- Opening of Foreign Currency accounts with a bank in India or abroad
by Exporters
d. BEF – Application for payment of import payment
105 Custom office returns to the exporter, which copy of the export declaration c
form:
a. Trade control copy
b. Currency control copy
c. Exchange control copy
d. Foreign control copy
106 Advance remittance can be allowed by AD banks, against import of aircraft / d
helicopter/ other aviation related purchases can be allowed without bank
guarantee for an amount up to:
a. USD one million
113 The charges for effecting each clean outward remittance for individuals up to b
Rs.250000/- is:
a. Rs.100/-
b. Rs.500/-
c. Rs.1000/-
d. Rs.1500/-
114 The charges collected for every request for early delivery, extension, roll over or c
cancellation of Forward sale/ purchase contract is:
a. Rs. 200/- per contract
b. Rs.500/- per contract
c. Rs.500/- per request + swap cost and cancellation charges where
applicable
d. Rs. 1000/- per request + swap cost and cancellation charges where
applicable
115 Which of the following is not true with respect to receipt of advance payment a
for export?
a. Shipment should be made within 3 years from date of receipt of advance
b. Interest payable on advance amount should not exceed LIBOR + 100bps
c. Exporters with three years good track record can receive long term
advance upto 10 years
d. Rate of interest payable on receipt of long term advance should not
exceed LIBOR + 200bps
116 The rate of interest equalization available on pre shipment rupee export credit a
and post shipment rupee export credit is ______ % per annum
a. 3 %
b. 2 %
c. 4 %
d. 5 %
117 In case of outward remittance if foreign currency ,what is the amount that can a
be accepted in Indian Cash
a. up to Rs 20000
b. less than Rs 20000
c. up to Rs 50000
d. less than Rs 500000
118 The term deposit of NRE and FCNR accounts can be opened for maximum c
period of ____ and ______ years :
a. 1 year and 3 years respectively
b. 2 years and 3 years respectively
c. at bank discretion and 5 years respectively
d. 3 years and 5 years respectively
119 While issuing the bill of lading to an exporter , a shipping company stated on the b
bill of lading that there has been few defects in the packing of goods.What type
of bill of lading it is:
a. on-board bill of lading
b. claused bill of lading
c. clean bill of lading
d. short bill of lading
120 What is the amount of foreign exchange which authorized dealers can release c
for meeting hospitalization expenditures abroad:
a. it is restricted to USD 100000 in a financial year
b. it can be any amount on the basis of self declaration without any
documentary proof
c. it can be up to USD 250000 on the basis of self declaration and any
amount on the basis of hospital estimate
d. it can be up to USD 100000 on the basis of hospital estimate
121 In a letter of credit, the shipment date is mentioned as on or about June 30 , d
2017. The shipment should take place:
a. on last day of the June 2017
b. between 16th June and 30th June
c. between 21st June and 30th June
d. between 26th June and 5th July
122 If in the letter of credit the term „beginning of the month‟ as part of validity date c
, is used , it covers the period from 1st day to 10th , as per
a. LC rules
b. FEDAI rules
c. UCPDC rules
d. INCO rules
123 In case of usance export bills, the maximum period that can be allowed is b
a. 9 months excluding NTP and grace period, if any
b. 9 months including NTP and grace period, if any
c. 365 days excluding NTP but including grace period, if any
d. 365 days including NTP and grace period, if any
124 What is the maximum extent up to which a person resident in India can retain c
foreign currency and foreign coins
a. any amount of currency notes and coins
b. maximum USD 2000
c. foreign currency up to USD 2000 and no limit on coins
d. foreign currency no limit and coins up to USD 2000
125 An NRI has sold a property in Delhi; he inherited from his parents 2 years back a
for a total amount of USD 14, 00,000. He wants its remittance to country of his
residence:
period
b. he can do so up to USD 10 million per financial year without any lock in
period
c. he can do so up to USD 1 million per financial year after a lock in period
of 2 years
d. he can do so up to USD 1 million per financial year after a lock in period
of 3 years