CAIIB_RISK MANAGEMENT GENERAL BANK MANAGEMENT INTERNATIONAL BANKING MODULE-A MULTIPLE CHOICE QUESTIONS 1.

1. Exports and Imports come under the purview of : a. b. c. d. e. ". Ministry of Finance Ministry of Commerce Ministry of External Affairs Ministry of ome Affairs Ministry of !!I

#hich one of the followin$ is not a cause but a conse%uence of &lobalisation' a. b. c. d. e. (ere$ulation abroad Inte$ration of Mar)ets *echnolo$y and )now+how &reater institutionali,ation abroad &reater -is) Exposure

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#hich one of the followin$ is not an investment option to a customer of international private ban)in$' a. b. c. d. e. Fixed Income /ortfolio E%uity /ortfolio Mana$ement 0alanced /ortfolio 1ffshore Mutual Fund Investment in 2&1

3.

An 104 set up in !E5 by a ban) in India is sub6ect to: a. b. c. d. e. C--7!8- stipulation of -0I 2o Capital Ade%uacy 2orms 2o prudential Accountin$ 2orms 2o C--7!8- stipulation of -0I 2o restrictions from &ovt of India.

9.

:0asel Committee on 0an)in$ !upervision; is also )nown as: a. b. c. d. e. *homas Coo) Committee 0I! Committee 0an) for International !ettlements Committee /eter Coo)e Committee 0an)in$ -e$ulation Committee

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#hich one of the followin$ systems occurred first in the history of international ban)in$' a. /ost 0retton #oods b. European Monetary 4nion c. &old !tandard d. &old Exchan$e !tandard e. Asian Clearin$ 4nion !tate 0an) of India is maintainin$ account in >apanese ?en with American Express 0an)@ *o)yo. It is )nown as: a. b. c. d. e. Aostro account 2ostro account 8oro account Escrow account Current account

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B.

#hich one of the followin$ is not an approved manner of payment for exports as per FEMA 1CCC on Exports' a. b. c. d. 0an) (raft@ pay order@ ban)ers@ che%ue or personal che%ues FC 2otes7F. *7Cs from the buyer durin$ his visit to India /ayment out of funds held in the FC2-72-E account maintained by the buyer /recious metals i.e. &old7!ilver7/latinum by &ems D >ewellery 4nits in !E5s and 1EEF E14s in e%uivalent value of 6ewellery exported sub6ect to fulfillment of certain conditions. e. Indian -upees in cash

C.

If a country is havin$ more exports than imports in value terms@ it can be said that the country is havin$:+ a. b. c. d. e. (eficit under 01/ (eficit under 01* !urplus under 01* !urplus under 01/ 01/ crisis

1E.

#hich one of the followin$ is not a Current account transaction' a. b. c. d. e. Imports payables Exports receivables Insurance (ividend External Commercial 0orrowin$s

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4nder a :*1M Aalue; transaction@ the rate is a$reed today but the settlement is to be done on: a. b. c. d. e. 2ext wor)in$ day !ame day . #or)in$ days after the date of deal 3 wor)in$ days after the date of deal " wor)in$ days after the date of deal

1".

An appreciation of the -upee relative to the 4! (ollar would be expected to have which of the followin$ effects' a. b. c. d. e. Increase 4! exports to India Increase 4! imports from India -aise the cost to Americans for Indian imports Create 0alance of /ayments surplus for India Create 0alance of payments surplus for 4!A

1..

#hich one of the followin$ is not a part of institutions under 0retton #oods !ystem' a. b. c. d. e. IMF I0-(G #orld 0an)H IFC I(A 0I!

13.

#hich one of the followin$ is not a source of fund available to ban)s /re+ shipment Credit In Forei$n Currency G /CFCH !cheme' a. b. c. d. e. EEFC A7cs 2-E A7cs -FC A7cs FC2-G0H A7cs Escrow A7cs

19.

4nless other wise specified in a 8etter of Credit which is issued sub6ect to 4C/(C 9EE and also 4C/(C <EE@ documents must be presented for ne$otiation within ++++++ days from the date of shipment : a. b. c. d. e. 1E days = days 19 days reasonable "1 days

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0an)s tradin$ actively in the forex mar)et and offerin$ a variety of products usually se$re$ate their tradin$ and dealin$ activities into three separate parts namely@ G1H!ettlement@ -econciliation and Accountin$ !ection@ G"H(ealin$ !ection and G.H -is) Mana$ement@ Accountin$ /olicies and MI! section which are also )nown as: a. b. c. d. e. G1HFront 1ffice G"H 0ac) 1ffice G.H Mid 1ffice G1H Mid 1ffice G"H 0ac) 1ffice G.H Front 1ffice G1H 0ac) 1ffice G"H Mid 1ffice G.H Front 1ffice G1H Front 1ffice G"H Mid 1ffice G.H 0ac) 1ffice G1H 0ac) 1ffice G"H Front 1ffice G.H Mid 1ffice

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0EF is the statement which ban)s submit to -0I relatin$ to :: a. *ransactions in 4! (ollars b. Importers who have not submitted documentary evidence for import within stipulated time period c. 1ver due export bills d. 2on performin$ assets e. Excess overni$ht limit position of the ban)

1B.

As a dealer you are havin$ a lon$ position of 4!( " Mio in 4!(7I2- I 39.9E. *he current mar)et rate is 39.9E739.9". ?our view of the mar)et is that rupee will be appreciatin$. #hat should be your %uote in this scenario' a. b. c. d. e. 39.9E739.91 39.91739.9" 39.9E739.9" 39.3C739.9E 39.3C=973C.9E=9

1C.

*arapore Committee II has su$$ested Fuller Capital Account Convertibility of Indian -upee by the year +++++++++++++ in . different sta$es: a. "EEC b. "E1E c. "EE= d. "EEB e. "E11 *arapore Committee II has su$$ested in :Fuller Capital Account Convertibility -eport; that the present ceilin$ under !pecial -emittance scheme be enhanced from 4!( "9EEE7J or e%uivalent to: a. b. c. d. 4!( .E@EEE in /hase II and 4!( 1EE@EEE in /hase III 4!( 9E@EEE in /hase II and 4!( 1EE@EEE in /hase III 4!( 1EE@EEE in /hase II and 4!( "EE@EEE in /hase III 4!( 9E@EEE in /hase II and 4!( 19E@EEE in /hase III

"E.

e. 4!( 9E@EEE in /hase II and 4!( =9@EEE in /hase III "1. #hich of the followin$ is not true re$ardin$ an A#0' a. It is prima facie evidence of receipt of car$o. b. It is a document of title to $oods. c. *he date of dispatch indicated on the A#0 will be deemed to be the date of shipment d. A#0 serves as an instruction sheet $ivin$ all the instruction needed for movin$ the $oods. e. A#0 is made out in three ori$inals "". 1ne month outri$ht forward rate for &0/7I2- is BE.B17BE.B. and the relevant swap points are 1E7C@ then the outri$ht spot rate for &0/7I2- is: a. b. c. d. e. BE.=17BE.=3 BE.CE7BE.C. BE.C17BE.C. BE.="7BE.=. BE.C17BE.C"

NOV 2008 Prepared by R N Hirve, Chief Manager, International Divi ion, Central !an" of India