With r"9ard to proouctMty of tradibonal """"ns, Ind"'s proouctMty performance;s satisfactory.

@ TRUE

a FALSE
The lirst 6 r""nds of MTNs concentrated on _

@ redudn~tari"s
o redudn~ Quotas
o redudn~ CtJstom duty
o if1Cfeasin~el""".alue
ne date 00 whid1 lI1e eXd1an~e of o.JrTendes is to take place is known as lI1e c::!!! of lI1e transaelioo.

http://www.imexforex.com/foreign.htm
The Overseas Investment Ins"r~nce does cover the risks on ~CCOIInt 01 contingendes hke w~r too.

a TRUE

@ FALSE
::::J did not feature in tl1e ne~.w. list of ~.ms unde, the Exim Policy '997- 2002
 The Income srotement consolidates the CIIrrent ~CCOIInts oIl sectors 01 the economy namely,

o p<ooocti\le sector

iii prtli.te sector

iii GO'I/emment sector

iii forei\lf1 sector

The r~te structure 01 ~ blink lor Y~rioos currencies m~y look ~ke ~s given, in the verticlll order _

@ Currency, Pound Ste~ing, US$

a US$, Pound Ste~ing, Currency Rate
a Pound Ste~ing, US$, Currency Rate
a Currency, US$, Pound Ste~ing
 Apan Irom the funded usistance, the Ellim Bonk also provides _

iii Itnes or credit

iii ooyers' credit

0 sellers' credit

iii bridge loans

 With the aOm of makin9 Ind'" a 9ems & jewellery hub of the woMd, these """,sures are announced _

http://business.gov.in/trade/foreign_trade.php

iii .1I0"';n9 Import of p<edous metal scr.p for mel~n9, ,efinlng & re-export
o pe"nissi"" to rHmport to see tI1e eneel of costs on domes~c p<o<lucltoo
iii permissi"" to export polished p<edous and semi predous st""es for treatment .!>ro.d

iii pe'missi"" for the export 01 jewellery on a consignment basis

The needs of the eltflOners & the imponers ~re basicllily the sa"",.

o TRUE

@ FALSE
BlS stands 10<
 The"" are the steps after the exponer submrts the duplicate of the GRlSDf form to the B<tnk with the sh;pp;ng dOCtlments _

iii lI1e Bank will report lI1is receipt al""9 will1 its periodical return to 1l1e R~
iii ~ will continue to hold 1l1e GRlSDF !Ofm ~111l1e lull export pfOceeds cO'I/ered by 1l1e !o<ms are reallud

o ~ will c""tinue 10 hold lI1e GRISDf !o,m even after lI1e lull export pfOceeds covered by 1l1e !o<ms are reallud

iii ~ will certify "" lI1e bacl; oj tI1e GRISDf !Ofm about lI1e b<1I realiLiti"" and !OfWard 10 1l1e R~
finished Handocmn products of sandalwood dOd feature in the prohibited ~st of rtems under the Exim Policy 1997_21>02.

a TRUE

@ FALSE
The ,",pon value On US$lrom the period 2OO2~5

@ increased more tI1an d<>Uble

o Increased less lt1an d<>Uble

o showed a sli\ll1tlall

o recorded a sli~ht increase

The Union Commerce" Industry Minister unveiled the Export Import P<>Iicy for the year 2001_2002 on

@ Ap<il 1st 2001

0 Mard11st2001

0 Mard131st2001

0 May 1st 2001

Cross rate F<>rWard Rate

~====I I~~==
Exct1ange rate Spot Rate

b...".nCUlllll:fX"
amencr y QIIQ·. . d on'"
IIalf or. . U. un ewrencr x
Ift(I Z1ft(I . . UI ,un YIft(I

.-......
v... or_ amencr lor. Idor
Cross rate
@ - ..
-"-
_-...
Forward Rate
@

Exrnange rate Spot Rate

@ --
TIle Elim Dank ",""des funds to Ind;an Promoters of joint yentures OIIerseas for "Quily parlidpa~OI1 Oller a period 01
,, years
 These ue the exch~nge r~te nomendatnres"sed for the seIIin9 n~tnre of the fr~nSllcbon. of the nndel1<lkin9 Bank _

iii n Selling Rate [ITS)

iii Bjll Selling R.te (BS)

iii TC Selling Rate (TeS)

o CB Selling R.te (CBS)

A key indicllior of the extent of lechnololliclll matulity and indusfrial developmenl of a coonlry is seen in its level of

@ Project exports

o Innux oIfOfei\jf1 tourists

o Software development and exports

o fashion shows of international models in India

The fIJI into Ind" whoch .,;eked up durin9 2005-00 was becIIuse of

@ India pe~0<""n9 relatillety well in 1I1e seMces seclo<

o India showin9 a good track recOld of loan repayments of international loans

o sustained groWl!1 in aelMly and p.ositille investment climate

o mass ....e inooslrialization Pfocess in 1I1e domestic economy

ECGC 01 In limrted wns estllblished by the Government 01 Ind" 10 enh.nce expon promotion by _

o help<ng the exporters ~nd new aIIenues of inllestment,\ p<oooclive resoorce energy
o e>:lending e.port credit espedally to new b<Jdding e.porters on the dfru~
o covering the risk ofe.porting on credit

@ ~nandng those projects whIm are ecooo"";cally ";able and help increase the overall e.port gfoWlh potenhl
Cana~""bon is now conlined to

@ certain pelr,"eum pWclucls, fertilizers, eeli!>e ,"Is, cereals

o certain pelr,"eum proclucls, fertilizers, wheat

o fertilizers, eeli!>e oils, cereals, com

o certain pelr,"eum proclucls, pes~ddes, ed;!>e ,"Is, cereals, cott""

DeveIoj>ed coontries are not oonemecl by utililing "l>OIIr and cnpiLtl from less develot>ecl coontries

a TRUE

@ F~SE
 A\llicunure;s amon9st the sectors wherein fIJI is prohibited under Government as _ as Automlloc Roote, except _

iii FIOIirultu,e

o Fertil"", development

iii Developmentofseeds

iii HO<1irultu,e
 These are the dero~s under the Currency structure 01 a blink _

0 CNB, TTB, TIC

iii TTB, BB, TCB

iii TCS, BS,CNS

iii CNB, TIS

no
... _-
pMndpal deposits of ;ron ore in the country are concentrated in

.... - ...
Sooth Africll show1!d ~ very n"ll101I_ Ompon bill in the ye;lrs 1991_90(.

@ TRUE

a F~SE
 A Bo>Ird of Dire<:tors on the ECGC comprises of rejlresentatives of the

iii Govemment
iii ,.
o Banking& Insurance community

iii F<>reign lIlinislr/ & the lIlinislr/ of Commerce

By 21>06, Ind" recorded ~ CAGR of _

@ 0.23

00.33

0043

o 0.53
These are the y""rs wh;ch have recorded the hillhest l declines in mpon values over the respective pr<Moos ye<trs in terms 01 US$
in millions_

I!l 1991-92

I!l 1984-85

I!l 1981-82

0 1983-84
In 21lO5, in expon 9'owth the"" we,e the last l perlormin9 coontries _

o China, Ko<ea, Ind;a

@ Malaysia, Sjngapofn, Ko<ea

o Cl1ina, Japan, Ko<ea

o Ko<ea, Ind;a, China

 The reserves & Monetary Gold under the IloII includes changes in totalloref\ln exchange reserves, whoch consists 01 _

iii R~ hoidinQs of 901d andfofei9n exmanQe

iii SDRs held by GOIot of India on ~s own acc<>Unt)

o open mart<:et securities 0I1l1e GO'I/emment

o public sectof share holdin9 wiI!11l1e GO'I/emment

Amongst the impons 01 C1Ip;t;tlgoods, these goods mnked in the lirst l slots

@ electron;c 90ods, tr.nsport equipment

o electric 900ds, transport equipment

o electron;c 90ods, software systems

o electric 900ds, met.1 m.nuf.ctures

The problem of faceless presence hu~ggravated the problem of selling under Ind",n brand names.

@ TRUE

o FALSE
 NRlsJOCB.JU. can ""'thue on non.r_lrtl1lk>n I>lIsls unNs 01

@ r.lon~y r.l"""ot r.l\lllJal Funds and Natjonal PlillllSaWlg.s COttrlleales

o Ol>~n mart~t u<:lllilin. S8l mulUal lyndS
o po.t olIIte $awIg1l tenilk;aln. Go<>'Imment aeCUlilies

o Lon~ term torl'O'"ate t>on<ls & clobenlures

Equilibrium in the BOP exists only when _

@ lI1e total debit is eClUal to lI1e total credit will10vt compensatory Of a=mmoda~n~ ""pitallranslers

o lI1e total 01 debils is eClUal to lI1e total of credits in absoMe & real terms

o lI1ere e>ists neill1er surplus nOf dendl on lI1e current accoun~ not c""siderin~ tI1e acti""s "" tI1e ""p'tal account

o lI1ere are no ct1an~es made In lI1e inlema~""al reserlles in Ofderto restOfe eQualily between receipts & payments on lI1e BOP
@ TRUE

o F~SE
In India's BOP statistics, e>:ports are recOfded sincel::::;;~ ~':'~"'~;:::Jwhen they are "eared by rustomer
au!hOlilies for shipment
Goods being sent ~broad lor repair ~nd re-<mponed Ian OIItside the JlllMeW 01 the Expon R"'l"loIbons loIld down by the RBI.

a TRUE

@ FALSE
 TlIe annual plans

iii witnessed no stimulaun~ eneel of devaluauon

o tr1. imports were hi~h.rtr1an exports bytr1. value oj Rs 2G67 crores

iii witnessed a betterlood crop

iii tr1. hi\ll1estlrade defidtwas not more tr1an Rs 910 cror.s

I:~~~~~~~~;~i coolrib<Jte to the hi~h cost of ",ooorn"" if1 India.
 GR fomlS PP forms

~====I I~====
Softe. forms SOFforms

II
CIl'Ma _ _ 1lIn
IIl'lllc.1IlOCII

.- or"" Ie......
1111 CIICIIlOll••rIlOllI
GR IOfms W10fms
ModiOOd lERM S culmjn~ted into the United Exchange Rate System ClIme into effoct Irom

0 April1 s~ 1993

@ M"'cI11s~ 1993

0 May 2nd, 1993

0 ApriI5lh,1993
The International Coori of Ar1litration is the longest institution of the ICC.

@ TRUE

a FALSE
The lowest trllde deOCit during the foorth Plan Period wns Rs

0 OOCwfes

0 B5Cn>res

@ SSCwfes

0 BSCwres
 fore;gn Tr~de en~l>Ies

iii Co-operation to ",event tension amongst countries

iii Inte~inkin~ of national interests tI1rou~h free trade

iii iINestments in fOfeill'1 countries

o Sopl1isticated nelwOfkin~
o
~
!
~
I
o
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L
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SO
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•o • • •• •,,
•o ••
•• o
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, 8" •• ••6 •• •
,•
•• • •
,• •, I •f•
'i:! '8
B
,, ~ 5~ ,•••
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I.
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i'
•• •• •l• ••• ,
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" •• •• •• ~
••~ ••~ ••~ ~••
~ 'E::
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· o
.<
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•• @ooo
19B~ 00 onward ""era~e annual imports are C::
Under the Exim Policy 2002 _2007 , in order to boost agro exports, corporate sector will be encouraged to

o sponsor AQri ExportZone

o QOie financial counselinQ to AQricultural Export Zooes

o help and Quide the AQri Export Houses i!!£,~ times olneed

@ help the AQri Export Houses to develop contacts and QOie Iree counselinQ
General~, options are not constructed on the underljinQ market, nut ramer tonv8l"me riQht to bllf' or sell the
 These are the suggestions gillen to the Government

iii Use ¥ery simple and clear lanQuaQe in all communicatio~s

iii Minimize the discretionary powers Qr.en to ollicjals

iii A¥oid corruption in the s¥stem

o Centralize absolute bureaucraU< powelS in the hands of the ollieial"

For the implementation offoreign trade rules and regulations, circulars are issued to all such Banks that are usually referred as

o ADPIR Circulars

o ARDIP Circulars

@ APDIR Circulars

o ADRIP Circulars
 The measures under the Third Yearly Import Export Policy were

iii increased liberalization olthe import 01 capital Qoods

iii rationalization olthe REP scheme

iii modification olthe list alOGl items

o decanalisation 011 0 essential1lems

Similar~, incase of the transfer of shares of listed companies from perMri re",dln~ outside India to a person resident in

India, valuation shall be as per the ...... ~ gUidelines

..
 ::]WOOd in ani form but excluding the value added praducts of this wood was in the prohibited list of

Exim Policy 1997- 2002

countries account (0' tho hiQhest exports
 On the BOP, Transportation credtts include _

iii estimated frei~ht on exports invoiced on CIFiCF basis

iii Remittances receOied by Indian SteamshipiAinine companies from their om,esia~ents abroad

o Remittances receOied by Indian

~ -
brancheVa~errts offorei~n steamshipiainine companies

iii Remittances made by Indian sleamstrlpiairline Companies to their ollicesi a~ents abroad
Free Trade refers to a sttuation

o where there is unrestricted exchanQe of Qoods and semoe.between countries

iii Where the Government follows a policy of non-interference

iii Where there is absence of tarin's quota~. exchanQe restriction taxes and subsidies on production
iii Where there are policies ,eslri'!in~ smooth exchan~e of Qoods
Export incent",es are a ";de~ adopted strate(l)l of
K is the policy oUhe government to keep the negative Ksts

o as small as possible under QOien circumstances and sUbiectto scrutiny as the exports become favorable

o as small as possible under any circumstances.anfsubject to scrutiny as the exports become fa'o'Vrable

o as small as possible under any circumstanoes and subject to scrutiny as the tradinQ balance become favorable

@ as small as possible under any circumstances and sUbjectto scrutiny as the imports of manufactures comes down
 The importance offoreign trade is

Iil Broadens outlook

o Accelerates QroWlh

Iil Expands markets

Iil EncouraQes on~ that sector wtlicM Mas " comparat",e act.'antaQe
Counties like Kazakhstan & Ukraine, amongst others were in the special focus of India's trade wtth the CIS Countries in 2IlOO_01

@ TRUE

a FALSE
The Committee appointed for mOIling towards fuller convertibility on the capttal account, detililed a rille_year time frame for achieving
~s objeclille in 3 phases, namely_

~ phase in 2006-07

~ phase in 2007-08 to 2008-09

o phase in 2007-08 to 2008-09

~ phase in 2009-1 0 to 201 G-IOl1

\.Is$" in millions o,er its pre"ous year

..."
Reserve Bank may consider "JIplicalions in Form RFC from exporters h1llling good track record for opening foreign currency
accounts wtth banks subject to certain terms and condttions.

@ TRUE

o FALSE
 :::1 is described as " s¥stem of rules to exercis~ open, f:lir & undistorted competition

http://www.wto.org/english/thewto_e/whatis_e/
tif_e/understanding_e.pdf
In 2005, in export growth these were the last 3 performing countries _

0 China, Korea, India

@ Mala)'Sia, SinQapore, Korea

0 China, Japan, Korea

0 Korea, India, China

These are India's prime importers of marine products (in their order of r""king)_

o European Union, US, Japan

@ US, Japan, European Union

o US, UK, Mala¥sia

o Japan, China, SinQapore

To gille a boost of electronic hardware industry supplies these ~ems shall qualiryfor the fulfinment of the export ob~gation.

http://www.economywatch.com/policywatch/highlight-of-exim-policy.htm

@ of all 217 ITA-1 items from EHTP units to DTA

o ofa1l2161TA-1 items from ETP units to DTA

o of all 1077 ITA-1 items from DTA units to Ef1!-

o ofa1l1001TA-1 itemsfromDTAunitstoETP
..,. ]miliion

....
•
No apprlMll is required to change the consignee.

o TRUE

@ FALSE
Presence of Sectoral Cap!Statutory ceiling means that

http://www.oocities.com/kstability/content/foreign-investment/faq-fii.html

@ non Qovernrnent indulQence in foreiQn investrnent below" parti,ular lirnit

o foreiQn investrnentfrorn all sources cannot exceed a specified level

o statutory % offoreiQn investrnent in dornel\t'0nfrastructure

o ceilinQ on the lirnit offoreiQn in""strnonl in public enterprises

The IMF was founded in 1 $!::J
http://en.wikipedia.org/wiki/International_Monetary_Fund The IMF
was formally organized on December 27, 1945, but as per SCDL ,
book it is 1946, page 201
•
 The Income statement consolidates the current accounts of 3 sectors of the economy namety',

Iil product",e sector

Iil pr","te sector

o GO¥ernment sector

Iil foreiQn sector

The import growth is

@ is just the same as the export QroWlh

o shows no siQn alposit",e development

o hea";'" less than the export QroWlh oI15:~%

o sliQhW less than export QroWlh 01 15.3%
The concerned parties for the transfer from resident to non_resident shaM adhere to pricing gUidelines, documentation and reporting
requirements for such transfers

a under the prescribed Quideline, of the Ministry of Finan,"

a under the prescribed Quideline, of the Ministry of Commerce

@ as specified and monitored b','the GO\Iern""",tfrom time to time

a as may be specified by ResetYe Bank. from time to time

The Government set up this cell (called by this name) in order to prevent dumping of cheap imports at unreasonable prices _

@ Directorate General of Anb-Dumpino & Allied Duties

o Anti dumpino cell

o Direct Move aoainst dumpino

o Direct Cell for anti-dumpino

By the term 'resident', Kindleberger means all those actually residing in the country, whether as c~ilens or not.

@ TRUE

a FALSE
The duplicate copy of GRISOFW form should be forwarded to Reserve Bank wtth these particulars:

http://rbidocs.rbi.org.in/rdocs/notification/PDFs/34134.pdf

~ Amountforwhich shipment was insured

~ Name and address of the insurance company
~ Place where the claim is payable
o Insurance details of the product shipped
A number of awards h""" been instttuted to encourage exports and to recognize exce"ence in exports.

@ TRUE

a FALSE
Until 1994- 95, L:~'~'!::J exports consisted of ,alue- adde~ leaTher pmdu,ts suc~ as SMpper's shoes, Qarments and

accessones

,
Even though the export credtt is increasing in absolute terms, the share of export financ9 In total net bank credtt is decreasing year
after year.

@ TRUE

o FALSE
Malhemalicallythe BOP must always balance.

@ TRUE

a FALSE
There have been significant imprOllements in the structure of India's BOP and the strength of the eldern'" sector since the
economic crisis of June, 1991.

@ TRUE

o FALSE
 The need for promoting mertha'" housas was IlllgelYfeR because lJf •

~ Ille fOfe;~n dependen" ruched serious propoltJons In 1M SecOfl~ F.... Year Pisn
o need (0, e:qIon promotion (0, non-tiadttjonal items

~ need was fett (0, p'ooidlng channels for export ofllle pro~uclS ofllle small sector
~ need was fett to successl\Jlly gel h'llh QIlalided & e.:perienced personnel ~m abroad
EEFC
1081 IFel
In case of any item falling under import license, the Banks SMuT~ noT ~pe~ any letter 01 credit or etrect any remittance

unless the Oflltlit_. is submitted and endorsed

http://www.rbi.org.in/Scripts/NotificationUser.
aspx?Id=240&Mode=0
, ... , ..
Remittance can be effected even after a lapse of 6 months provided _

iii the remittinQ bank is canoinced 'nith the reasons of delay

iii no interest is payable forthe delayed period

iii the conditionalities stand the same for 'lttypes vfQood, be IT books or bikes

o a Quarantee is obliQatory in case of alilemittance,

India does not really have an easy access to market intelligence and information.

@ TRUE

a FALSE
The chanQe in the L:::= ~:;!Il'~!::::::J are accommo6affhQ transactions to restore equality bel+ieen receipts

& payments on the BOP

 These are the main components of non_factor services _

o Insurance

iii travel

iii transportation

iii investment semee counseljnQ

Period of packing credtt is related to the operating cycle but tt is usually restricted to 160 days.

@ TRUE

a FALSE
Imports from these counties are wtthin the top 5 posttions for India for the 1991_92

iii Germani

iii Saudi Arabia

0 BelQium

iii C~
In order to reduce chronic disequilibrium, Under Bretton Woods, the last resort as suggested by the government would be _

o revaluation

o devaluation

o internationallendinQ

@ subsidilinQ interest rates in IoreiQn ,.prtal