2. As per FEMA 1999, a Person who has come to India and has taken up employment in India will be considered
as:
a. Non Resident Indian
b. Person of Indian Origin
c. A person Resident in India
d. Pado Pardesh
____________________________________________________________________________________________
3. All transactions undertaken by a resident that do not alter his assets or liabilities outside India are called:
a. Forward Transactions
b. Future Contracts
c. Current Account Transactions
d. Capital Account Transactions
____________________________________________________________________________________________
4. What does Section 5 of Foreign Exchange Management Act FEMA 1999 empower?
a. It empowers Reserve Bank of India in consultation with Government of India to impose reasonable
restrictions on certain current account transactions.
b. It empowers Reserve Bank of India in consultation with Government of India to impose reasonable
restrictions on certain capital account transactions.
c. It empowers Government of India in consultation with Reserve Bank of India to impose reasonable
restrictions on certain current account transactions.
d. It empowers Government of India in consultation with Reserve Bank of India to impose reasonable
restrictions on capital account transactions.
____________________________________________________________________________________________
5. Who among the following shall not be deemed as 'Authorised Persons' as per FEMA 1999?
a. All AD Banks
b. Offshore Banking Units
c. Licensed Money Changers
d. None of these.
____________________________________________________________________________________________
7. Release / Remittance of Foreign Exchange could not be done for whichof the following transactions by an AD
Category II entity?
a. Private Visits
b. Business Travel
c. Film Shooting
d. None of these.
____________________________________________________________________________________________
8. Expand MEIS
a. Merchant Export-Import Scheme
b. Merchandise Exporters' Incentive Scheme
c. Merchant Exporters' Incentive Scheme
d. Merchandise Export from India Scheme
____________________________________________________________________________________________
9. What is the maximum validity period for duty credit scrips which allows duty-free imports for export on self-
certification?
a. 12 months
b. 16 months
c. 18 months
d. 24 months
____________________________________________________________________________________________
10. Upto how many US Dollars Authorised Dealers may freely allow remittances by resident individuals
a. Upto USD 2,50,000 per Calendar Year
b. Upto USD 2,00,000 per Calendar Year
c. Upto USD 2,50,000 per Financial Year
d. Upto USD 2,00,000 per Financial Year
____________________________________________________________________________________________
11. Among the following, please select the entity eligible for remittance facilities under Liberalised Remittance
Scheme
a. HUF
b. Non-Resident Indians
c. Resident Individuals
d. Both (B) and (C) above
____________________________________________________________________________________________
12. For what type of transaction, LRS Liberalised Remittance Scheme is available?
a. Current Account Transaction
b. Capital Account Transaction
c. Combination of both (a) and (b) above
d. None of these.
____________________________________________________________________________________________
7. D 8. D 9. D
10. C 11. C 12. C
Question Bank : International Banking, Treasury &Wealth Management
14. In respect of LRS Liberalised Remittance Scheme,which one of the following is not true?
a. Remittances under LRS can be consolidated in respect of family members subject to certain terms and
conditions.
b. Under LRS, Clubbing is not permitted by other family members for capital account transactions such as
purchase of property if they are not the co-owners/ co-partners of the overseas property.
c. A resident can gift to another resident in foreign currency for the credit of the latter's foreign currency account
held abroad under LRS.
d. All Statements areTrue.
____________________________________________________________________________________________
15. Which one of the following is not a permitted capital account transaction by an individual under LRS?
a. Opening of Foreign Currency Account abroad with a Bank
b. Purchase of Property abroad.
c. Extending loans including loans in Indian Rupees to Non-Resident Indians (NRIs) who are relatives as
defined in Companies Act 2013.
d. Remittance for Margins or margin calls to overseas exchanges.
____________________________________________________________________________________________
16. Out of the following transactions, identify the Capital Account Transaction:
a. Private Visits
b. Gift / Donation
c. Business Trip
d. Opening of foreign currency account abroad with a bank
____________________________________________________________________________________________
17. Out of the following transactions, identify the Current Account Transaction:
a. Purchase of Property abroad
b. Opening of foreign currency account abroad with a Bank
c. Studies Abroad
d. None of these.
____________________________________________________________________________________________
18. Out of the following which is not true in respect of facility to grant loan in rupees under LRS?
a. Resident Individual is permitted to lend to a NRI Non-Resident Indian
b. Resident Individual is permitted to lend to PIO Person of Indian Origin
c. Resident Individual is permitted to lend to close relative
d. The minimum maturity of the loan should be atleast three years.
____________________________________________________________________________________________
13. D 14. C 15. D
16. D 17. C 18. D
Question Bank : International Banking, Treasury &Wealth Management
19. Which one of the following is not true in respect of Rupee Gift to a NRI / PIO who is a relative of the resident
individual?
a. The amount should be credited to the NRE Account of the NRI / PIO
b. The gift amount would be within the overall limit of USD 2,50,000 per FY as permitted under LRS for a
resident individual.
c. It would be the responsibility of the resident donor to ensure that the gift amount is within the LRS limit and all
remittances made by the donor during the financial year including the gift amount have not exceeded the limit
prescribed under the LRS.
d. The amount should be credited to the NRO Rupee Account of the NRI / PIO
____________________________________________________________________________________________
20. Which is the authentic website to access the updated list of countries notified as non-cooperative by FATF?
a. www.ncct.org
b. www.fagi.org
c. www.gafi.org
d. www.fatf-gafi.org
____________________________________________________________________________________________
21. Foreign Exchange to be released for business travel to an Indian Citizen not to exceed …….
a. USD 2000
b. USD 10000
c. USD 25000
d. USD 250000
____________________________________________________________________________________________
25. From Bank's angle when there is inflow of forex and outflow of rupees these transactions are called
a. purchases
b. remittances
c. sales
d. A or B
____________________________________________________________________________________________
26. Liberalised Remittance Scheme for resident individuals for undertaking transactions it is mandatory to have
____ to make remittances.
a. Aadhar Number
b. PAN number
c. DGFT number
d. Licence
____________________________________________________________________________________________
27. Which one of the following is not true in respect of IDC International Debit Cards issued by Authorized Banks?
a. IDCs can be used only for permissible Current Account Transactions.
b. The limits mentioned in the Schedules to the Rules, as amended by time to time are not applicable to
payments made through use of these cards.
c. IDCs cannot be used on internet for payment of call-back services.
d. All Statements areTrue.
____________________________________________________________________________________________
29. Resident Indians who purchase their travel cards,are permitted refund of the unutilized foreign exchange
balance only after
a. 180 days of their return to India
b. 60 days of their return to India
c. 30 days from the date of last transaction
d. 10 days from the date of last transaction
____________________________________________________________________________________________
30. General Permission is available to persons other than individuals to remit towards donations upto ___% of their
foreign exchange earnings during the previous ____ financial years or USD_____ whichever is less for creation of
chairs in reputed educational
a. 2%,2 financial years, USD 5000000 whichever is less
b. 2%, 3financial years, USD 5000000 whichever is more
c. 1%,3 financial years, USD 5000000 whichever is less
d. 1%,3 financial years, USD 5000000 whichever is more
____________________________________________________________________________________________
25. A 26. B 27. B
28. D 29. D 30. C
Question Bank : International Banking, Treasury &Wealth Management
31. Remittances by persons other than individuals shall require prior approval of RBI if commission per transaction
to agents abroad for sale of residential flats or commercial plots in India exceeds USD _______ or ____% of the
inward remittance whichever is
a. 25000,3%,less
b. 25000,5%,more
c. 30000,3%,less
d. 30000,5%,more
____________________________________________________________________________________________
33. Recipients of Foreign Inward Remittances are allowed to retain ____% of the amount in a foreign currency
denominated non-interest bearing account to be opened with an AD Bank in India.
a. 50
b. 60
c. 75
d. 100
____________________________________________________________________________________________
36. In which form an RFC Account can be opened, held and maintained?
a. Current
b. Savings
c. Term Deposit
d. A or B or C
____________________________________________________________________________________________
31. B 32. D 33. D
34. D 35. D 36. D
Question Bank : International Banking, Treasury &Wealth Management
37. In respect of Maintenance of Foreign Currency Accounts Outside India, who among the following cannot open a
foreign currency account with a Bank outside India for carrying on normal business and incidental transactions?
a. An Indian Shipping Company
b. A branch outside India of a Bank incorporated in India
c. An AD in India with its head office outside India
d. None of These
____________________________________________________________________________________________
38. A person resident in India may transfer by way of sale the shares offered by a foreign Company under its ESOP
Schemes provided that the proceeds thereof are repatriated immediately on receipt thereof and in any case not later
than ____ days from the date
a. 30
b. 60
c. 90
d. 180
____________________________________________________________________________________________
39. An NRI wants to make payment for acquisition in India an immovable property other than Agricultural
land/plantation property / farm house. To make this payment which one of the following debit is not permitted?
a. NRE Account
b. FCNR(B) Account
c. NRO Account
d. None of these
____________________________________________________________________________________________
40. Mr.X wants to acquire immovable property in India. If Mr.X is a citizen of which of the following country, he need
not obtain prior permission of RBI to acquire the property?
a. Sri Lanka
b. Maldives
c. China
d. Pakistan
____________________________________________________________________________________________
41. An individual resident in India may borrow a sum not exceeding US$_____ or its equivalent from his close
relatives outside India subject to certain conditions.
a. 125000
b. 150000
c. 200000
d. 250000
____________________________________________________________________________________________
42. Which is not true in respect of Non-Resident (External) Rupee Account Scheme (NRE Account)
a. Current income like rent, dividend, pension, interest etc will be construed as a permissible credit to the NRE
account.
b. NRE accounts cannot be maintained with cooperative banks.
c. NRE account can be opened in the form of current account.
d. PIOs are permitted to open and maintain NRE accounts.
____________________________________________________________________________________________
37. D 38. C 39. D
40. B 41. D 42. B
Question Bank : International Banking, Treasury &Wealth Management
43. Which one of the following is not true in respect of loans against the security of funds held in NRE accounts?
a. Such loans cannot be given to thrid party in India
b. Such loanh proceeds cannot be repatriated outside India
c. The facility for premature withdrawal of deposits will not be available where loans against such deposits are
availed of.
d. The term loan shall include non-fund based facilities.
____________________________________________________________________________________________
44. Among the following, which one can be done by a resident Power of Attorney Holder of an NRE Account?
a. Opening of a NRE Account.
b. Transfer funds from NRE account to NRO account
c. Make payment by way of gift to a resident on behalf of the account holder.
d. Repatriate outside India funds held in the account other than to the account holder himself.
____________________________________________________________________________________________
46. What is the maximum period of term deposits under FCNR(B) Scheme?
a. Three Years
b. Four Years
c. Five Years
d. None of these
____________________________________________________________________________________________
48. What is the name of the exclusive page available on Reuters Monitor Screen wherein FEDAI publishes the
benchmark rates for five maturities in 10 currencies on the last working day of each month?
a. NREFCNRINFEDAI
b. INFEDAIFCNRNRE
c. INFCNRFEDAINRE
d. FCNRNREINFEDAI
____________________________________________________________________________________________
43. A 44. A 45. B
46. C 47. C 48. B
Question Bank : International Banking, Treasury &Wealth Management
49. The interest on deposits accepted under FCNR(B) shall be paid on the basis of ____ days to a year.
a. 355
b. 360
c. 365
d. 350
____________________________________________________________________________________________
50. If the account holder opts, funds held in FCNR(B) account shall be converted into Rupees by the AD Banks at
______ Rate for the concerned currency ruling on the date of withdrawal and can be credited to depositor's NRE
account.
a. Bill Buying Rate
b. TT Selling Rate
c. TT Buying Rate
d. Bill Selling Rate
____________________________________________________________________________________________
51. Which one of the following is not true in respect of NRO Account (Non-Resident Ordinary Account Scheme)?
a. Any person resident outside India may open and maintain NRO account with an AD or an Authorised Bank
for the purpose of putting through bonafide transactions denominated in US Dollars.
b. Post Offices in India are allowed to maintain savings bank accounts in the names of persons resident outside
India and allow operations on these accounts on the same terms and conditions applicable to the accounts
maintained with an authorised dealer/auth
c. NRO Account can be opened in the form of Current Account.
d. NRO Account can be opened by a foreign national of non-Indian origin visiting India
____________________________________________________________________________________________
52. When a resident Indian becomes a person resident outside India his existing resident account should be
designated as ____ Account.
a. NRE Account
b. NRO Account
c. RFC Account
d. RFC (Domestic) Account
____________________________________________________________________________________________
53. Transactions done through International Credit Cards issued to NRIs/PIOs cannot be settled by
a. Outward Remittance
b. Out of balances held in the cardholder's FCNR(B) account
c. Out of balances held in the cardholder's NRE account
d. Out of balances held in the cardholder's NRO account
____________________________________________________________________________________________
56. If a resident who opened a PPF account subsequently becomes a non Resident during the currency of the
maturity period, which of the following is/are not correct?
a. The account shall be deemed to be closed with effect from the last calendar day during the month he
becomes a non-resident
b. interest with effect from date of deemed closure shall be paid at the rate applicable to the Post Office Saving
Account up to the last day of the month in which the account is actually closed
c. the account shall be deemed to be closed with effect from the day he becomes a non-resident
d. (A) and (B)
____________________________________________________________________________________________
58. What is the ECGC premium on WTPC and WTPS advances renewed from 01/07/2017?
a. 13.50 paise per Rs.100 per year
b. 13.50 paise per Rs.100 per month
c. 11.50 paise per Rs.100 per year
d. 11.50 paise per Rs.100 per month
____________________________________________________________________________________________
59. Which is not excluded from WT-PS cover of ECGC as per our Bank renewed Insurance cover?
a. Private Companies
b. OBU
c. State PSU
d. LC
____________________________________________________________________________________________
60. What is the maximum liability under the ECIB, i.e., the maximum amount up to which claims will be paid by
ECGC to Bank for packing credit advances granted during one ECIB year (from 01/07/2017 to 30/06/2018)?
a. Rs.230 Crores
b. Rs.60 Crores
c. Rs.320 Crores
d. Rs.80 Crores
____________________________________________________________________________________________
55. D 56. D 57. D
58. D 59. A 60. C
Question Bank : International Banking, Treasury &Wealth Management
61. What is the maximum liability under the ECIB, i.e., the maximum amount up to which claims will be paid by
ECGC to Bank for claims against Post shipment credit advances granted during one ECIB cover period of one year
(from 01/07/2017 to 30/06/2018)?
a. Rs.230 Crores
b. Rs.60 Crores
c. Rs.320 Crores
d. Rs.80 Crores
____________________________________________________________________________________________
62. Whenever ECGC claims are preferred/ settled / rejected, branches should inform the full details to whom?
a. CO: Credit Division
b. International Division, Mumbai and CO: Credit Division through their respective zonal office then and there
without any delay.
c. CO:Recovery Department
d. International Division, Mumbai and CO: Recovery department through their respective zonal office then and
there without any delay.
____________________________________________________________________________________________
63. Among the following which will not make ECGC reject an insurance claim either under WT-PC or WT-PS
Policies?
a. Non-Payment of Regular Monthly Premium
b. Started paying the premium only after the account became irregular.
c. Release of PC advance with a valid purchase order/LC
d. Not following the ECGC Policy Guidelines(Terms and Conditions)
____________________________________________________________________________________________
64. What is the Template ID for branches to inform details of premium paid on ECGC WT-PC and WT-PS policies in
BBMIS?
a. 599 within 7 days every quarter
b. 559 within 7 days every quarter
c. 599 within 7 days every halfyear
d. 559 within 7 days every halfyear
____________________________________________________________________________________________
65. What is the periodicity of statement to be submitted to ECGC on accounts under SMA-2 category in respect of
advances covered under ECIB-WTPC and WTPS policies?
a. Weekly
b. Monthly
c. Quarterly
d. Halfyearly
____________________________________________________________________________________________
66. ECGC maintains a record of buyers that have come to its adverse notice known as Buyers specific approval list
(BSAL). What is the periodicity in which this list is being updated in their website?
a. Daily
b. Weekly
c. Monthly
d. Annual
____________________________________________________________________________________________
61. B 62. D 63. C
64. B 65. C 66. A
Question Bank : International Banking, Treasury &Wealth Management
68. "Report of default" is to be submitted in the prescribed format to the nearest ECGC branch office within _____
month(s) from the date of recalling of the PC/PS advances or within ____ month(s) from the due date / extended
due date of the outstanding advan
a. one, three
b. three,one
c. one,four
d. four,one
____________________________________________________________________________________________
69. Branch should file a claim in respect of an account within _____ months from the date of report of default to
ECGC.
a. Three
b. Four
c. Six
d. Twelve
____________________________________________________________________________________________
70. The Recovery in any ECGC claim settled account should be shared proportionately with ECGC in the same
proportion in which the loss was borne within ____ days of recovery.
a. Seven
b. Fourteen
c. Twentyone
d. Thirty
____________________________________________________________________________________________
73. What is the official website of the policymaking body established in 1989 by G7 Summit?
a. www.fatf-fafi.org
b. www.fatf-gafi.org
c. www.fatf.org
d. www.fatf.com
____________________________________________________________________________________________
76. How much of one's foreign exchange earnings can be credited to an EEFC Account?
a. 50%
b. 60%
c. 75%
d. 100%
____________________________________________________________________________________________
81. Banks must report all blockings to OFAC within ____ business days of the occurrence and annually by
September 30 concerning those assets blocked as of June 30.
a. 5
b. 10
c. 15
d. 21
____________________________________________________________________________________________
85. Which is not a classification of goods for importing under Foreign Trade Policy?
a. Prohibited
b. Cancelled
c. Canalysed
d. Restricted
____________________________________________________________________________________________
87. Which one of the following countries is not a member of the Asian Clearing Union?
a. Myanmar
b. Republic of Maldives
c. Bangladesh
d. Afghanistan
____________________________________________________________________________________________
88. Remittances against imports should be completed not later than ___ months from the date of shipment except
in cases where amounts are withheld towards guarantee of performance etc.
a. Three
b. Four
c. Five
d. Six
____________________________________________________________________________________________
89. AD Category-I banks may permit settlement of import dues delayed due to disputes, financial difficulties et.
However interest if any on such delayed payments usance bills or overdue interest is payable only for a period of
upto ____ year(s) from the date
a. One
b. Two
c. Three
d. Four
____________________________________________________________________________________________
90. Deferred payment arrangements (including suppliers' and buyers' credit)beyond ___ months and upto ___ years
are treated as Trade Credits for which the procedural guidelines as laid down in the Master Circular for External
Commercial Borrowings and Trade C
a. 3,3
b. 3,5
c. 6,3
d. 6,5
____________________________________________________________________________________________
85. B 86. B 87. D
88. D 89. C 90. D
Question Bank : International Banking, Treasury &Wealth Management
91. AD Category-I banks are permitted to issue guarantee on behalf of their customers importing services provided
the guarantee amountdoes not exceed __________
a. INR 500000
b. USD 500000
c. INR 250000
d. USD 250000
____________________________________________________________________________________________
93. AD Category-I Bank may accept in lieu of Exchange Control Copy of Bill of Entry for home consumption a
certificate from the Chief Executive Officer (CEO) or auditor of the company that the goods for which remittance was
made have actually been imported in
a. 100000
b. 1000000
c. 500000
d. 5000000
____________________________________________________________________________________________
94. AD Banks can make remittances where import bills have been received directly by the overseas seller where
the value of import bill does not exceed USD __________.
a. 100000
b. 200000
c. 300000
d. 400000
____________________________________________________________________________________________
97. One method by which a firm may protect itself against economic exposure is
a. Futures market hedging
b. Forward contract hedges
c. Money Market Hedges
d. Geographical diversification
____________________________________________________________________________________________
98. When an enterprise has an unhedged receivable or payable denominated in a foreign currency and settlement
of the obligation has not yet taken place that firm is said to have
a. Tax Exposure
b. Operating Exposure
c. Accounting Exposure
d. Transaction Exposure
____________________________________________________________________________________________
99. The potential for an increase or decrease in the parent's net worth and reported net income caused by a change
in exchange rates since the last consolidation of international operations is a reflection of
a. Exchange Rate Exposure
b. Operating Exposure
c. Strategic Exposure
d. Translation Exposure
____________________________________________________________________________________________
101. Among the following which is not true in respect of Certificate of Origin?
a. Certificate of Origin indicates the country where the goods were originally produced/manufactured.
b. In many countries, permission to import is refused unless a certificate of origin is produced.
c. Certificate of origin may form part of the invoice itself or may be a separate document.
d. All are Correct
____________________________________________________________________________________________
102. Who is the authorised agency to issue Certificate of Origin under GSTP?
a. SAPTA
b. Export Inspection Council
c. ESCAP
d. Export Promotion Council
____________________________________________________________________________________________
97. D 98. D 99. D
100. C 101. D 102. B
Question Bank : International Banking, Treasury &Wealth Management
106. Which bill of lading merely acknowledges that the goods have been received by the ship-owners or their
agents for shipment?
a. Short Form Bill of Lading
b. Clean Bill of Lading
c. Received for Shipment Bill of Lading
d. On Board Bill of Lading
____________________________________________________________________________________________
110. Within a maximum of ___ days following the presentation of documents under a Credit to a Nominated bank, a
Confirming Bank and the Issuing Bank, they must examine a presentation to determine on the basis of documents
alone whether or not the documents app
a. Three Days
b. Three Banking Days
c. Thee Working Days
d. Five Banking Days
____________________________________________________________________________________________
111. A presentation must be made by or on behalf of the beneficiary not later than ___ days after the date of
shipment but in any event not later than the expiry date of the credit.
a. 30 calendar days
b. 19 calendar days
c. 15 calendar days
d. 21 calendar days
____________________________________________________________________________________________
112. In Swift Message which of the following pertains to Documentary Credit Message?
a. MT103
b. MT202
c. MT700
d. MT900
____________________________________________________________________________________________
114. Which Message in Swift deals with Single Customer Credit Transfer?
a. MT102
b. MT103
c. MT110
d. MT111
____________________________________________________________________________________________
109. C 110. D 111. D
112. C 113. B 114. B
Question Bank : International Banking, Treasury &Wealth Management
117. __________ is a system of exchange rate adjustment in which a currency with a fixed exchange rate is
allowed to fluctuate within a band of rates.
a. Crawling Peg
b. Dollarization
c. Adjustable Peg
d. Currency Peg
____________________________________________________________________________________________
119. Difference between buying and selling rates in an exchange rate or interest rate quotation is known as
a. Swap Points
b. Spread
c. Strike Price
d. Spot Rate
____________________________________________________________________________________________
124. The maximum amount that an Indian Company can issue as ADR/GDR in a year is
a. USD 500 million
b. USD 30 million
c. USD 20 million
d. No Monetary Ceiling
____________________________________________________________________________________________
125. The Spot Exchange Rate is the rate today for exchanging one currency for another
a. for immediate delivery
b. at a specific future date
c. at a specific location on a specific future date
d. at a specific location for immediate delivery
____________________________________________________________________________________________
129. What is the minimum maturity period for Masala Bonds raised upto USD 50 million equivalent in INR per
Financial year?
a. 1 Year
b. 2 Years
c. 3 Years
d. 5 Years
____________________________________________________________________________________________
130. What is the minimum maturity period for Masala Bonds raised above USD 50 million equivalent in INR per
Financial year?
a. 1 Year
b. 2 Years
c. 3 Years
d. 5 Years
____________________________________________________________________________________________
131. Out of the following purposes, identify the purpose for which Rupee Denominated Bond can be issued
overseas?
a. Purchase of Land
b. Development of integrated township
c. Activities prohibited as per FDI Guidelines
d. None of the above
____________________________________________________________________________________________
135. What term would you give for simultaneous buying and selling of securities,currency, or commodities in
different markets or in derivative forms in order to take advantage of differing prices for the same asset.
a. Speculation
b. Arbitrage
c. Hedging
d. Swap
____________________________________________________________________________________________
136. What do you call the price which a seller is willing to accept for a security?
a. Ask Quote
b. Buy Quote
c. Offer Price
d. (A) or (C)
____________________________________________________________________________________________
137. What do you call the economic transaction between residents of two nations over a stipulated period of time
usually a calendar year.
a. Unilateral Transfer
b. Portfolio Investments
c. Short Term Borrowings
d. Long Term Borrowings
____________________________________________________________________________________________
138. What is the term given to the price fixed by the seller of a security after receiving bids in a tender offer, typically
for a sale of gilt-edged securities or a new stock market issue?
a. Spot Price
b. Strike Price
c. Settlement Price
d. Stock Price
____________________________________________________________________________________________
133. D 134. C 135. B
136. D 137. A 138. B
Question Bank : International Banking, Treasury &Wealth Management
139. The price at which a market maker is prepared to sell (a currency) or lend (money)
a. Bid Rate
b. Spot Rate
c. Offer Rate
d. Forward Rate
____________________________________________________________________________________________
140. When the dollar rises in value relative to a foreign currency, the current assets and current liabilities of a
U.S.Foreign Subsidiary increase in dollar value.
a. TRUE
b. FALSE
c. XXXX
d. XXXXX
____________________________________________________________________________________________
142. _______ converts not just the basis of the interest rate liability but also the currency of this liability.
a. Circus Swap
b. Cross-Currency Swap
c. Stock Swap
d. Inflation Swap
____________________________________________________________________________________________
145. A _________ is an outright forward or futures contract in which counterparties settle the difference between
the contracted NDF price or rate and the prevailing spot price or rate on an agreed notional amount. It is used in
various markets such as foreign
a. Catastrophe Swap
b. Credit Default Swap
c. Replacement Swap
d. Non deliverable swap
____________________________________________________________________________________________
146. The impact the foreign exchange rate has on a firm is known as
a. Business Risk
b. Translation Exposure
c. Operating Exposure
d. Transaction Exposure
____________________________________________________________________________________________
147. The price at which a market maker is prepared to buy (a currency) or borrow (money) is
a. forward rate
b. bid rate
c. offer rate
d. Spot Rate
____________________________________________________________________________________________
148. ___________ is usually located in another country that provides service for another bank.
a. Correspondent Bank
b. Foreign Bank
c. World Bank
d. Central Bank
____________________________________________________________________________________________
149. The _______ is a public frinancial market in which financial instruments or commodities are traded for
immediate delivery.
a. Forward Market
b. Spot Market
c. Interbank Market
d. None of these.
____________________________________________________________________________________________
150. ____________________ is the exposure of a bank, financial institution, or any type of major investor to foreign
exchange contracts.
a. Aggregate Risk
b. Credit Risk
c. Jurisdicition Risk
d. Settlement Risk
____________________________________________________________________________________________
145. D 146. C 147. B
148. A 149. B 150. A
Question Bank : International Banking, Treasury &Wealth Management
157. ________ occurs when the inhabitants of a country use foreign currency in parallel to or instead of the
domestic currency.
a. Adjustable Peg
b. Currency Peg
c. Crawling Peg
d. Dollarization
____________________________________________________________________________________________
160. _____________ are the exchange of one set of cash flows (based on interest rate specifications) for another.
a. Accreting Principal Swap
b. Basis Rate Swap
c. Reverse Swap
d. Interest Rate Swap
____________________________________________________________________________________________
162. The _____ is the informal over-the-counter financial market by which contracts for future delivery are entered
into
a. Interbank market
b. Spot Market
c. Forward Market
d. None of these.
____________________________________________________________________________________________
157. D 158. C 159. B
160. D 161. A 162. C
Question Bank : International Banking, Treasury &Wealth Management
164. ________ is a country or government's exchange-rate policy of pegging the central bank's rate of exchange to
another country's currency.
a. Crawling Peg
b. Dollarization
c. Adjustable Peg
d. Currency Peg
____________________________________________________________________________________________
165. ________ is a hypothesis in international finance that suggests differences in nominal interest rates reflect
expected changes in the spot exchange rate between countries.
a. Interest rate parity
b. Purchasing Power parity
c. Traditional Model
d. International Fisher Effect
____________________________________________________________________________________________
166. _________ is the most heavilty traded currency in the foreign exchange market
a. EUR
b. JPY
c. GBP
d. USD
____________________________________________________________________________________________
167. _______ accounts are generally held by a foreign bank in our country (with a domestic bank)
a. MIRROR
b. LORO
c. NOSTRO
d. VOSTRO
____________________________________________________________________________________________
169. A foreign currency swap is simply an agreement between two parties to exchange one currency for another at
a yet-to-be-determined future date but at a specified exchange ratio.
a. TRUE
b. FALSE
c. XXXX
d. XXXXX
____________________________________________________________________________________________
171. _______ is the risk of loss of principal or loss of a financial reward stemming from a borrower's failure to repay
a loan or otherwise meet a contractual obligation.
a. Credit Risk
b. Jurisdiction Risk
c. Settlement Risk
d. Aggregate Risk
____________________________________________________________________________________________
174. Forward Exchange Rate is the rate today for exchanging one currency for another
a. at a specific future date
b. at a specific location on a specific future date
c. for immediate delivery
d. at a specific location for immediate delivery
____________________________________________________________________________________________
169. B 170. A 171. A
172. D 173. D 174. A
Question Bank : International Banking, Treasury &Wealth Management
175. ________ is a type of swap in which two parties swap variable interest rates based on different money
markets.
a. Accreting Principal Swap
b. Interest Rate Swap
c. Reverse Swap
d. Basis Rate Swap
____________________________________________________________________________________________
176. _____ is a customizable financial instrument traded in the over-the-counter derivatives market that enables
insurers to guard against massive potential losses resulting from a major natural disaster
a. Non-deliverable Swap
b. Catastrophe Swap
c. Credit Default Swap
d. Replacement Swap
____________________________________________________________________________________________
177. ______________ is a particular type of swap designed to transfer the credit exposure of fixed income products
between two or more parties.
a. Credit Default Swap
b. Non Deliverable Swap
c. Replacement Swap
d. Catastrophe Swap
____________________________________________________________________________________________
178. ____________ is an agreement between two parties to exchange interest payments and principal on loans
denominated in two different currencies.
a. Circus Swap
b. Cross-Currency Swap
c. Inflation Swap
d. Stock Swap
____________________________________________________________________________________________
182. ____ is a derivative used to transfer inflation risk from one party to another through an exchange of cash flows.
a. stock swap
b. inflation swap
c. cross-currency swap
d. Circus Swap
____________________________________________________________________________________________
184. ______ is an exchange rate policy adopted by some countries wherein the national currency is largely pegged
or fixed to a major currency such as the U.S.Dollar or Euro, but can be readjusted from time to time within a narrow
interval.
a. Adjustable Peg
b. Currency Peg
c. Crawling Peg
d. Dollarization
____________________________________________________________________________________________
185. In order to secure export payments against political and economic risks and get financial assistance from
institutions, the exporter must register with
a. Export Credit and Guarantee Corporation (ECGC)
b. Apparel Export Promotion Council (AEPC)
c. Registration cum Membership Certificate (RCMC)
d. Director General of Foreign Trade (DGFT)
____________________________________________________________________________________________
186. Spot Settlement takes place on the date of transaction plus ___ days basis
a. 2
b. 3
c. 0
d. 1
____________________________________________________________________________________________
181. A 182. B 183. D
184. A 185. A 186. A
Question Bank : International Banking, Treasury &Wealth Management
187. It is a _____ quotation if the foreign currency is in fixed form and the local currency is in variable form
a. Indirect
b. Direct
c. Foreign Form
d. Local Form
____________________________________________________________________________________________
189. This account is held by a 3rd party bank,other than the account maintaining bank or with whom account is
maintained.
a. MIRROR
b. VOSTRO
c. LORO
d. NOSTRO
____________________________________________________________________________________________
190. Which of the following is the rate at which a banker is willing to buy foreign currency?
a. Offer Rate
b. Cross Rate
c. Bid Rate
d. Spread Rate
____________________________________________________________________________________________
191. Other things equal, a larger share of a tariff is more likely to be "paid" by the foreign exporting country B rathen
than the domestic importing country A if
a. the supply curve of B's producers is very inelastic
b. the demand curve of A's consumers is very inelastic
c. the demand curve of B's consumers is very elastic
d. the supply curve of A's producers is very inelastic
____________________________________________________________________________________________
194. Which among the following is the largest food item imported into India?
a. Milk and dairy products
b. Meat
c. Vegetable Oils
d. Food Grains
____________________________________________________________________________________________
198. Which of the following agricultural commodity of India gives largest in terms of export value?
a. Cotton
b. Spices
c. Rice
d. Tea
____________________________________________________________________________________________
193. B 194. C 195. A
196. B 197. C 198. C
Question Bank : International Banking, Treasury &Wealth Management
208. An import quota specifies the ______ amount of a good that can be imported into a country; a step to
becoming more protectionist would involve ______ in the quota
a. minimum, a reduction
b. minimum, an enlargement
c. maximum, an enlargement
d. maximum, a reduction
____________________________________________________________________________________________
210. Which one of the following sets of countries contains only members of the European Union?
a. Belgium, Greece,Italy, Russia
b. Denmark,Greece, the Netherlands, Russia
c. Germany, Italy, Portugal, Norway
d. France, Spain, Finland, United Kingdom
____________________________________________________________________________________________
205. D 206. A 207. C
208. D 209. B 210. D
Question Bank : International Banking, Treasury &Wealth Management
211. In general, other things equal, trade creation is more likely to outweigh trade diversion for a home country
forming a customs union with partner countries (i)if the total number of countries forming the union is _____ and (ii) if
the level of tariffs in
a. Large rather than small, high rather thanlow
b. Small rather than large, high rather than low
c. Large rather than small, low rather than high
d. Small rather than large, low rather than high
____________________________________________________________________________________________
213. The bank which finally collects the documents and claims reimbursement is called
a. negotiating bank
b. confirming bank
c. paying bank
d. advising bank
____________________________________________________________________________________________
214. Major Korean international trading companies are part of the large Korean Business groups called
a. chaebol
b. sogo shosha
c. kaizen
d. maquiladora
____________________________________________________________________________________________
217. When exporter avails post-shipment credit in foreign country, what is taken as the benchmark for the interest
rate?
a. BPLR
b. MCLR
c. MIBOR
d. LIBOR
____________________________________________________________________________________________
218. Which of the following is not an assumption in comparative advantage trade theory?
a. Countries must have common border
b. Only two countries and two goods
c. Zero Transportation Cost
d. Constant Returns to Scale
____________________________________________________________________________________________
222. What two economic factors reflect the attractiveness ofa country as a potential market for investment?
a. Industrial structure and income distribution
b. Political stability and a positive trade balance
c. Industrial structure and political stability
d. Positive trade balance and industrial structure
____________________________________________________________________________________________
217. D 218. A 219. D
220. D 221. A 222. A
Question Bank : International Banking, Treasury &Wealth Management
224. Which one is the largest source of revenue for Indian Government
a. Service Tax
b. Custom duty
c. Excise Duty
d. Income Tax
____________________________________________________________________________________________
225. Which IncoTerm includes the price of rail transport to port (including insurance) and getting goods upto the
ship
a. Ex works
b. Free Carrier
c. Free on board
d. Free alongside ship
____________________________________________________________________________________________
226. The imposition ofan export tax by a home country will lead to ____ in home country consumer surplus and will
______ in home country producer surplus
a. An increase; also lead to an increase
b. A decrease; also lead to a decrease
c. A decrease; lead to an increase
d. An increase; lead to decrease
____________________________________________________________________________________________
227. Which bank has launched 'Japan Desk' to facilitate Japanese Corporates investing in India?
a. Dena Bank
b. SBI
c. Bank of Baroda
d. PNB
____________________________________________________________________________________________
237. Account of a Bank in another country which is used by a third bank is called ……..
a. LORO
b. NOSTRO
c. VOSTRO
d. None of these
____________________________________________________________________________________________
241. An NRI can open NRO account jointly with a resident of India
as …………………….. only
a. Joint
b. F or S
c. E or S
d. Cannot open
____________________________________________________________________________________________
242. Any limit Indian currency that a Resident Indian travelling to Nepal & Bhutan may carry or bring back
a. No
b. USD1000
c. USD2500
d. USD5000
____________________________________________________________________________________________
243. Any restriction for returning travellers to retain with him, foreign coins without any ceiling beyond 180
days,which can be utilized by the traveller for his subsequent visit abroad
a. No
b. USD1000
c. USD2500
d. USD5000
____________________________________________________________________________________________
245. As per FEMA, the person authorised to undertake the sale and purchase of foreign exchange is called
a. FX Dealer
b. Authorised Dealer
c. FX Bank
d. Money Exchange Agency
____________________________________________________________________________________________
247. Can remittance be made by Xpressmoney /Moneygram /Speedremit to NRE or FCNR accounts
a. Yes
b. No
c. Yes upto USD 1000
d. Yes upto USD 2500
____________________________________________________________________________________________
257. For travel to Bhutan and Nepal can banks release Foregn Exchange
a. Yes
b. No
c. On RBI permission
d. On FEMA permission
____________________________________________________________________________________________
259. IDRBT (Institute of Development and Research in Banking Technology ) is the technical arm of ……
a. GOI
b. RBI
c. IBA
d. FEDAI
____________________________________________________________________________________________
260. If the nominee in an NRI account is NRI , on the death of the account
holder
a. Repatriation is NOT allowed to the
NRI nominee
b. Repatriation is allowed to the
NRI nominee
c. Permitted upto certain
limits only
d. None of these
____________________________________________________________________________________________
267. Minimum period of FCNR(B) …. Year/s and maximum period is …... years
a. 1 and 10
b. 3 and 5
c. 1 and 5
d. None of these
____________________________________________________________________________________________
272. Organizations / associations can accept contributions from a “foreign source” only if they are registered with
a. IBA
b. FEDAI
c. Home Affairs Ministry GOI
d. FEMA
____________________________________________________________________________________________
286. The act which stipulates that all associations should receive foreign
assistance only through registered accounts is called…….
a. SFMS
b. FEMA
c. FCRA
d. FIRC
____________________________________________________________________________________________
287. Transfer of funds from NRO to FCNR (B) a/c of the depositor is
a. Not Permitted
b. Permitted
c. Permitted upto certain limits
d. None of these
____________________________________________________________________________________________
288. Transfer of funds from NRO to FCNR (B) a/c of the depositor
is …………..
a. Permitted
b. Not Permitted
c. Permitted upto USD 1 million
d. None of these
____________________________________________________________________________________________
283. C 284. C 285. C
286. C 287. A 288. B
Question Bank : International Banking, Treasury &Wealth Management
290. Unused foreign exchange taken for travel in the form of currency notes
is to be surrendered to an AD within ………..days of return
a. 90
b. 30
c. 180
d. 60
____________________________________________________________________________________________
293. What are the deposit accounts that can be opened for NRIs and PIOs?
a. NRO
b. NRE
c. FCNRB
d. All of these
____________________________________________________________________________________________
294. What is the time period in days by which foreign student should produce local address proof to the branch?
a. 60
b. 45
c. 30
d. 90
____________________________________________________________________________________________
289. C 290. C 291. C
292. C 293. D 294. C
Question Bank : International Banking, Treasury &Wealth Management
303. In our Bank who gives permission to our branches to conduct forex transactions
a. SWIFT
b. CO International Division
c. OSB Chennai
d. None of these
____________________________________________________________________________________________
305. In our bank who decides the exchange rate in forex transactions
a. SWIFT
b. OSB Chennai
c. Trasury Branch Mumbai
d. CO International Dn
____________________________________________________________________________________________
306. If the currency of a country is permitted by the country‟s regulator to be exchanged with any other foreign
currency, that currency is called
a. Exchangeable Currency
b. Repatriable Currency
c. Convertible Currency
d. None of these
____________________________________________________________________________________________
301. D 302. B 303. B
304. C 305. C 306. C
Question Bank : International Banking, Treasury &Wealth Management
308. Any foreign currency transaction which alters the assets or liability
position abroad in foreign currency of a resident is termed
a. Capital Account Transaction
b. Current Account Transaction
c. Either a or b
d. None of these
____________________________________________________________________________________________
309. Any person who has stayed in India for a period of more than 182 days
during the preceding financial year is
a. PIO
b. NRE
c. NRO
d. Resident
____________________________________________________________________________________________
315. FEMA was enacted in …….... The guidelines under FEMA came into effect from 01.06………..
a. 1999 and 2000
b. 2000 and 2001
c. 2001 and 2002
d. 2002 and 2003
____________________________________________________________________________________________
321. UCPDC (Uniform Customs and Practices for Documentary Credits ) was
first codified by ……….
a. RBI
b. ICC International Chamber of Commerce
c. IDRBT
d. FEDAI
____________________________________________________________________________________________
324. Which agency provides guarantee cover to banks for the credit
facilities extended by them to exporters.
a. CGTMSE
b. ECGC
c. CGFMU
d. FEDAI
____________________________________________________________________________________________
319. B 320. C 321. B
322. A 323. A 324. B
Question Bank : International Banking, Treasury &Wealth Management
325. Branches handling export finance have to follow the guidelines issued by
a. CGTMSE
b. ECGC
c. CGFMU
d. FEDAI
____________________________________________________________________________________________
330. Who verifies ,scriutinizes and stamps the CDF (Currency Declaration Form)
a. RBI
b. Customs Dept
c. Ministry of Commerce
d. Ministry of Customs and
Central Excise
____________________________________________________________________________________________
325. B 326. B 327. A
328. A 329. B 330. B
Question Bank : International Banking, Treasury &Wealth Management
331. Under FEMA, release of foreign exchange for travel to and transactions
with residents of Bhutan and Nepal
a. Is permitted
b. Is not permitted
c. May be permitted
d. Can be permitted upto
a certain limit
____________________________________________________________________________________________
334. As per the guidelines of RBI, in the case of premature withdrawal of NRE
term deposits for conversion into Resident Foreign
Currency (RFC) Account
a. Banks should not levy
any penalty
b. Banks can levy penalty
c. Levying penalty is left to the
discretion of individual banks
d. Penalty should be levied at 1%
____________________________________________________________________________________________
335. In case of premature closure of NRE Term deposits before completion of ……… year/s no interest is payable
.
a. 1
b. 2
c. 3
d. 5
____________________________________________________________________________________________
336. Regarding Western Union Money Transfer which of the following is NOT correct
a. Only personal remittances shall be allowed under this arrangement
b. A cap of USD 2500 has been placed on individual remittance under the scheme.
c. Donations / contributions to charitable institutions / trusts can be maded. Amounts up to Rs.50,000/-
may be paid in cash to a beneficiary in India.
____________________________________________________________________________________________
331. B 332. A 333. C
334. A 335. A 336. C
Question Bank : International Banking, Treasury &Wealth Management
337. Regarding Western Union Money Transfer which of the following statement/s
are true.
a. Commercial transactions are not covered under
the arrangement.
b. Credit to NRE Accounts shall
not be made through this arrangement.
c. Both A and B
d. None of these
____________________________________________________________________________________________
338. For accepting NRE Term Deposits of above Rs….. Crore/s, approval of the Treasury Branch is needed.
a. 1
b. 2
c. 5
d. 10
____________________________________________________________________________________________
344. Upto Rs …….. can be accepted in cash for purchase of foreign exchange for travel abroad
a. Rs 50000
b. Rs 250000
c. Rs 500000
d. Cannot be accepted in Cash
____________________________________________________________________________________________
346. Under LRS Liberalised Remittance Scheme authorized dealers may allow remittances by resident individuals
up to …………... per financial year for any permitted current or capital account transaction or a combination of both.
a. USD 100000
b. USD 200000
c. USD 250000
d. USD 500000
____________________________________________________________________________________________
356. Sale taking place before the goods reaching the shore is called as …………
a. High Sea Sales
b. Offshore Sales
c. Virtual Sales
d. In Cognito Sales
____________________________________________________________________________________________
360. Any deal where settlement is to take place after the spot date is called as
a. Onward Settlement
b. Dealyed Settlement
c. Forward Settlement
d. Scheduled Settlement
____________________________________________________________________________________________
355. D 356. A 357. B
358. A 359. B 360. C
Question Bank : International Banking, Treasury &Wealth Management
361. The rate quoted for purchase or sale of foreign currency on a future date is
called ………
a. Forward rate
b. Onward Rate
c. Speculative Rate
d. None of these
____________________________________________________________________________________________
362. As per the Foreign Trade (Development & Regulation) Act, 1992, any person intending to Import or Export
shall possess Import Exporter Code IEC issued by Directorate General of Foreign Trade (DGFT). Choose the most
appropriate .
a. IEC is 10 digit number
b. IEC is 10 digit alpha numeric
c. IEC is the 10 digit PAN of the entity
d. IEC is 10 digit alpha
____________________________________________________________________________________________
367. Regarding Real Estate Business which of the following statements is correct
a. Foreign investment upto USD 2500 is permitted
b. No upper limit for foreign investment
c. Foreign Investment not allowed
d. None of these
____________________________________________________________________________________________
368. Exchange of cash flows between two parties can be best termed as
a. Swap
b. Sweep
c. Cash Exchange
d. None of these
____________________________________________________________________________________________
371. Value of goods imported in to India is adjusted against value of goods exported from India - this is termed
a. Counter trade arrangement
b. Forward Trade
c. High sea Sales
d. None of these
____________________________________________________________________________________________
376. Maximum amount of foreign currency a resident can receive from a non resident on a visit to India towards
sale price of goods/ services in India is USD ______ :
a. USD 10000 or equivalent
b. USD 2000 or equivalent
c. USD 5000 or equivalent
d. No limit
____________________________________________________________________________________________
377. As per existing guidelinesI, a usance export bill purchased remaining unpaid is required to be crystallized:
a. On the 30th day after due date
b. within 30 days from the date of purchase
c. within 30 days of dispatch of documents
d. Within 25 days after due date
____________________________________________________________________________________________
378. Where an export bill remains outstanding for more than 6 months from date of export, banks are to submit to
RBI a statement called………………
a. R return
b. BEF
c. Stat 5
d. XOS
____________________________________________________________________________________________
373. b 374. d 375. B
376. D 377. A 378. D
Question Bank : International Banking, Treasury &Wealth Management
383. Refinance against export credit for short term export is provided by ________
a. SIDBI
b. EXIM Bank
c. ECGC
d. RBI
____________________________________________________________________________________________
384. Maximum Period for which the post-shipment finance can be extended at concessional rates for all types of
commodities, from the date of advance is :
a. 180 days
b. 360 days
c. 270 days
d. 365 days
____________________________________________________________________________________________
379. D 380. A 381. D
382. D 383. D 384. C
Question Bank : International Banking, Treasury &Wealth Management
386. While participating in a Trade fair, an exporter can „Gift‟ unsold goods, up to the value of
USD………………..per exporter, per exhibition/Trade fair.
a. 1000
b. 2500
c. 5000
d. 10000
____________________________________________________________________________________________
387. Reduction in invoice value by an exporter can be permitted by an AD provided the reduction does not
exceed………………………..percent.
a. 1%
b. 15%
c. 2%
d. 25%
____________________________________________________________________________________________
388. Maximum Period for which the pre-shipment finance can be extended at concessional rates for all types of
commodities, from the date of advance is :
a. 270 Days
b. 180 days
c. 360 Days
d. 90 Days
____________________________________________________________________________________________
389. Which of the following is not true in respect of allowing payments for export of goods / software to be received
from a third party (a party other than the buyer) subject to:
a. Firm irrevocable order backed by a tripartite agreement should be in place;
b. Third party payment should come from a Financial Action Task Force (FATF) compliant country and through
the banking channel only;
c. The exporter should declare the third party remittance in the Export Declaration Form
d. It would be responsibility of the Exporter to realize and repatriate the export proceeds from such third party
named in the EDF
____________________________________________________________________________________________
397. Which one of the following entities is not an "Investment Vehicle" as defined in FDI Policy of 2016?
a. Real Estate Investment Trusts (REITs) governed by the SEBI (REITs) Regulations, 2014
b. Infrastructure Investment Trusts (InvIts) governed by the SEBI (InvIts) Regulations, 2014
c. Alternative Investment Funds (AIFs) governed by the SEBI (AIFs) Regulations, 2012.
d. None of these
398. Which one of the following is not an eligible inverstor under FDI?
a. A non-resident entity subject to the FDI Policy except in those sectors/activities which are prohibited.
b. Citizen of Bangladesh or an entity incorporated in Bangladesh under the automatic route.
c. A citizen of Pakistan or an entity incorporated in Pakistan only under the Government route in
sectors/activities other than defence, space and atomic energy and sectors/activities prohibited for foreign
investment.
d. NRIs resident in Nepal and Bhutan as well as citizens of Nepal and Bhutan on repatriation basis, subject to
the condition that the amount of consideration for such investment shall be paid only by way of inward remittance
in free foreign exchange through
____________________________________________________________________________________________
399. Upto what maximum percentage of capital of an Indian Company engaged in any activity mentioned in
Schedule 6 of Notification No. FEMA 20/2000, including startups irrespective of the sector in which it is engaged,
can a SEBI registered Foreign Venture Cap
a. Upto 51%
b. Upto 75%
c. Upto 100%
d. None of these
____________________________________________________________________________________________
400. Which one of the following is not true regarding subscription to National Pension System governed and
administered by Pension Fund Regulatory and Development Authority (PFRDA) by a Non-Resident Indian?
a. A Non- Resident Indian may subscribe to the said scheme provided such subscriptions are made through
normal banking channels and the person is eligible to invest as per the provisions of the PFRDA Act.
b. The annuity accumulated by an NRI under the said scheme will be repatriable.
c. The savings of an NRI under the said scheme shall accumulate on non-repatriation basis.
d. None of these
____________________________________________________________________________________________
401. Regarding FDI investement in Partnership Firm/Proprietary Concern by an NRI / PIO resident outside India
which one of the following subjective provisions is not true as per FDI Guidelines?
a. The applications of NRIs/PIO who seek prior permission of RBI for such investments with repatriation option
will be decided in consultation with Government of India.
b. Such Amount invested is by inward remittance or out of NRE/FCNR(B)/NRO account maintained with
Authorized Dealers/Authorized banks.
c. The firm or proprietary concern is not engaged in any agricultural/plantation or real estate business or print
media sector.
d. None of these
____________________________________________________________________________________________
402. Among the following agricultural sector / activities, in which sector / activity FDI is allowed?
a. Floriculture, Horticulture, Apiculture and Cultivation of Vegetables and Mushrooms under controlled
conditions
b. Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture, under controlled conditions
c. Both (A) and (B)
d. Neither (A) nor (B)
____________________________________________________________________________________________
397. D 398. B 399. C
400. C 401. D 402. C
Question Bank : International Banking, Treasury &Wealth Management
409. Among the following choose the best answer: Identify the correct entry route and maximum permitted equity /
FDI Cap in respect of Banking - Private Sector Banking in India as per FDI norms in vogue.
a. Automatic upto 100%
b. Government Route upto 100%
c. Automatic upto 74%
d. Automatic upto 49%;
Government route beyond 49% and upto 74%
410. Among the following choose the best answer: Identify the correct entry route and maximum permitted equity /
FDI Cap in respect of Banking - Public Sector Banking in India as per FDI norms in vogue.
a. Automatic upto 20%
b. Government Route upto 49%
c. Government Route upto 20% excluding State Bank of India and its associate Banks
d. Government Route upto 20% including State Bank of India and its associate Banks
411. In respect of FDI for Private Sector Banking in India, identify the correct stipulation out of the following:
a. At all times atleast 26% of the paid up capital of a private bank will have to be held by residents.
b. Minimum holding by residents in the paid up capital of a private bank is not applicable in respect of a wholly
owned subsidiary of a foreign bank.
c. Both (A) and (B)
d. Neither (A) nor (B)
412. Among the following choose the best answer: Identify the correct entry route and maximum permitted equity /
FDI Cap in respect of Insurance as per FDI norms in vogue in India.
a. 49% Automatic for Insurance Company and Insurance Brokers whereas 49% under Government Route for
Third Party Administrators and Surveyors and Loss Assessors
b. 49% under Government Route for Insurance Company and Insurance Brokers whereas 49% Automatic
Route for Third Party Administrators and Surveyors and Loss Assessors
c. 49% Automatic for Insurance Company, Insurance Brokers, Third Party Administrators and Surveyors and
Loss Assessors
d. 49% Automatic for Insurance Company, Insurance Brokers, Third Party Administrators and Surveyors and
Loss Assessors subject to approval / verification by the Insurance Regulatory and Development Authority of
India
413. In respect of FDI in White Label ATM Operations in India which one of the following stipulations is not true?
a. 100% Equity / FDI cap is allowed in WLA operators in India under Automatic Route.
b. Any non-bank entity intending to set up White Label ATMs should have a minimum networth of Rs.50 crore
as per the latest financial year's audited balance sheet which is to be maintained at all times.
c. In case the entity intending to set up White Label ATM in India is also engaged in any other 18 NBFC
activities, then the foreign investment in the company setting up WLA shall also have to comply with the
minimum capitalization norms for foreign investme
d. None of the above
414. Which one of the following is not true in respect of FDI norms for NBFCs as per Cabinet decision in August
2016?
a. Foreign Investment in NBFCs can now come under automatic route provided they are regulated by any of
the financial sector regulators.
b. Entities not regulated by any of the regulators RBI/SEBI/PFRDA etc government agencies will need approval
from the FIPB
c. Minimum capitalisation norms as mandated under FDI policy have been eliminated as most of the regulators
have already fixed minimum capitalisation norms.
d. None of these.
____________________________________________________________________________________________
409. D 410. D 411. C
412. D 413. B 414. D
Question Bank : International Banking, Treasury &Wealth Management
415. In July 2016, Union Cabinet has given approval for change in foreign shareholding limit. What is the new
foreign shareholding limit in Indian Exchanges?
a. 0.05
b. 0.1
c. 0.15
d. None of these
____________________________________________________________________________________________
416. As per 2016 World Investment Report, what is the rank of India in FDI (Foreign direct investment) inflows?
a. 5th
b. 8th
c. 10th
d. 15th
____________________________________________________________________________________________
417. Which one of the following statements is correct in respect of FDI in ARCs?
a. 74%FDI is allowed in Asset Reconstruction Companies under automatic route.
b. 100%FDI is allowed in Asset Reconstruction Companies under automatic route.
c. 100%FDI is allowed in Asset Reconstruction Companies under approval route.
d. 74%FDI is allowed in Asset Reconstruction Companies under approval route.
____________________________________________________________________________________________
418. Which one of the following is not a norm under FDI policy especially recent amendment in respect of
Construction Development Sector?
a. Easing of are restriction norms.
b. Reduction of minimum capitalisation
c. Easy exit from Project
d. None of these.
____________________________________________________________________________________________
419. What is the Foreign Investment Limit in Defence and Airlines under FDI norms?
a. Upto 49% through the approval route.
b. Upto 74% through the approval route.
c. Upto 49% through the automatic route.
d. Upto 74%through the automatic route.
____________________________________________________________________________________________
420. Which one of the following cannot be a member bank of FEDAI as at present?
a. Cooperative Banks
b. Public Sector Banks
c. Foreign Banks
d. None of these
____________________________________________________________________________________________
415. C 416. C 417. B
418. D 419. C 420. D
Question Bank : International Banking, Treasury &Wealth Management
421. Which one of the following is not true about the role of FEDAI?
a. FEDAI is an Association of Banks
b. It is a self-regulatory body
c. It is incorporated under the Companies Act
d. None of these
____________________________________________________________________________________________
422. Which one of the following is not included in definiton of foreign exchange as per FEMA 1999
a. Deposits, credits and balances payable in any foreign currency
b. Drafts, TC, LC or BOE, expressed or drawn in Indian Currency but payable in any foreign currency
c. Drafts, TCs, LC or BOE drawn by banks, institutions or persons outside India, but payable in Indian Currency
d. Drafts, TC, LC or BoE expressed or drawn in India in Indian Currency and not payable in foreign currency
____________________________________________________________________________________________
423. Which of the following characteristic of a citizen other than Bangladesh and Pakistan does not define a PIO
(Person of Indian Origin) ?
a. Any time held Indian Passport
b. Either of his parents or grandparents was citizen of India
c. The person is spouse of an Indian Citizen
d. None of these
____________________________________________________________________________________________
424. As per FEMA Guidelines, which one of the following is not included while defining a person?
a. An Individual
b. A Hindu undivided family
c. A Company
d. None of these
____________________________________________________________________________________________
425. As per FEMA Guidelines, for any offence committed in August 2001, if a person has to be assessed as to
whether he is a person resident in India, for more than how many days he should have resided in India?
a. For more than 182 days during January 2000 to December 2000
b. For more than 180 days during January 2000 to December 2000
c. For more than 182 days during April 2000 to March 2001
d. For more than 180 days during April 2000 to March 2001
____________________________________________________________________________________________
426. What was the date from which FEMA Act came into effect?
a. W.e.f.01st June 1999
b. Wef 01st April 1999
c. Wef 01st June 2000
d. Wef 01st April 2000
____________________________________________________________________________________________
421. D 422. D 423. D
424. D 425. C 426. C
Question Bank : International Banking, Treasury &Wealth Management
429. As per FEMA, the foreign exchange means foreign currency and includes which of the following:
a. Deposits, credits and balances payable in any foreign currency
b. Drafts, TC, LC or BOE, expressed or drawn in Indian Currency but payable in any foreign currency
c. Drafts, TCs, LC or BOE drawn by banks, institutions or persons outside India, but payable in Indian Currency
d. All of the above
____________________________________________________________________________________________
432. As per the latest Foreign Trade Policy, change in criteria for export performance for recognition of status
holder from Rupee to USD in respect of 4 star export house is :
a. USD 25 million
b. USD 100 milion
c. USD 500 million
d. USD 2000 million
____________________________________________________________________________________________
427. C 428. B 429. D
430. B 431. D 432. C
Question Bank : International Banking, Treasury &Wealth Management
433. What is not true above Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit :
a. The exporters are eligible for benefit under this scheme from 01 Feb 2016
b. The exporters are eligible for benefit under this scheme From 01 April 2015
c. The interest equalisation benefit will be available from the date of disbursement up to the date of repayment
or up to the date beyond which the outstanding export credit becomes overdue.
d. The benefit under this scheme to exporter is 3%
____________________________________________________________________________________________
435. Nostro account of Indian Bank with Bank of America in Washington is maintained in – currency
a. IB, OSB‟s JPY a/c with Bank of Japan in Tokyo
b. INR
c. USD
d. SDR
____________________________________________________________________________________________
436. Bank of America, New York is maintaining a rupee account with your Model branch. This account is called
a. Nostro account
b. Vostro account
c. Loro account
d. Resident account
____________________________________________________________________________________________
438. You receive a TT from your correspondent Bank for credit to the a/c of your customer. Which exchange rate
will be applied by you?
a. TT selling rate
b. Bills buying rate
c. TT buying rate
d. Notional rate
____________________________________________________________________________________________
433. A 434. D 435. C
436. B 437. A 438. C
Question Bank : International Banking, Treasury &Wealth Management
439. Customer‟s DD is received for credit to his a/c. DD is drawn by BOA, New York for USD 2500 on your branch.
You will apply
a. DD buying rate
b. Bills buying rate
c. TT buying rate
d. Notional rate
____________________________________________________________________________________________
440. The exchange rate to be applied for retiring an import bill on collection basis with an advise to remit the
proceeds by TT:
a. TT selling rate
b. Bills buying rate
c. Bills selling rate
d. TT Buying
____________________________________________________________________________________________
441. Your NRI customer wants to take traveller cheque for USD 500, with debit to his NRE a/c. The rate applied is –
a. TC selling rate
b. Bills buying rate
c. Bills selling rate
d. TT Buying
____________________________________________________________________________________________
442. Customer wants to cancelled the DD for USD 500 purchased from you. The rate applied is
a. TC selling rate
b. Bills buying rate
c. Bills selling rate
d. TT Buying
____________________________________________________________________________________________
443. Your customer wants to receive the matured proceeds of his FCNR deposit in INR. The rate applied is
a. TT selling rate
b. Bills buying rate
c. TT buying rate
d. Bills selling rate
____________________________________________________________________________________________
444. The act which stipulates that all associations should receive foreign assistance only through registered
accounts is called
a. FEMA
b. FERA
c. FCRA
d. BCI
____________________________________________________________________________________________
439. C 440. C 441. A
442. D 443. B 444. C
Question Bank : International Banking, Treasury &Wealth Management
445. In case of travel, foreign exchange is to be released maximum _______ days before the date of travel
a. 15
b. 30
c. 60
d. 90
____________________________________________________________________________________________
447. In case of travel to Iraq or Libya, AD can release currency notes upto equivalent to USD _____
a. 1000
b. 2000
c. 5000
d. entire amount
____________________________________________________________________________________________
448. Cash Payment against drawl of foreign exchange for travel abroad may be accepted by the AD
a. up to Rs.100,000
b. up to Rs.20,000
c. up to Rs.50,000
d. up to USD 5000
____________________________________________________________________________________________
449. Offices and branches maintaining independent foreign currency accounts in their own names.
a. Category A
b. Category B
c. Category C
d. Category D
____________________________________________________________________________________________
450. Offices and branches not maintaining independent foreign currency accounts but operating on the accounts
maintained by Category A branches
a. Category A
b. Category B
c. Category C
d. Category D
____________________________________________________________________________________________
445. C 446. C 447. C
448. C 449. A 450. B
Question Bank : International Banking, Treasury &Wealth Management
451. All other offices and branches handling foreign exchange business through Category A or B offices/branches
a. Category A
b. Category B
c. Category C
d. Category D
____________________________________________________________________________________________
456. Mechanism by which currency of one country is converted into currency of another country
a. Foreign Trade
b. Foreign Exchange
c. Balance of payment
d. Balance of Trade
____________________________________________________________________________________________
451. C 452. A 453. B
454. C 455. B 456. B
Question Bank : International Banking, Treasury &Wealth Management
457. The difference between the total export of goods and import of goods for a country is
a. Foreign Trade
b. Foreign Exchange
c. Balance of payment
d. Balance of Trade
____________________________________________________________________________________________
458. Who issues licences to Authorised Dealer (ADs) Banks, Full Fledged Money Changers(FFMCs) and other
selected Financial Institutions to deal in foreign exchange
a. FEDAI
b. RBI
c. Finance Ministry
d. SEBI
____________________________________________________________________________________________
459. Scheduled commercial Banks currently authorized by RBI to deal in foreign exchange are
a. AD I
b. AD II
c. AD III
d. NONE
____________________________________________________________________________________________
460. FFMCs (Full Fledged Money Changers), Co-operative banks, select Regional Rural Banks (RRBs) and other
entities
a. AD I
b. AD II
c. AD III
d. NONE
____________________________________________________________________________________________
461. The statute which governs foreign exchange transaction is ___________ which came into effect during June
2000:
a. Foreign Exchange Regulation Act
b. Foreigh Exchange Management Act
c. Foreign Exchange Monitoring Act
d. Liberalised Foreign Exchange Regulations
____________________________________________________________________________________________
464. A credit limit provided to a bank by another bank or financial institution for use to provide finance to borrowers
a. Line of credit
b. Refinance
c. Second line of credit
d. Standby credit
____________________________________________________________________________________________
466. Any person coming from abroad other than Nepal and Bhutan and touching the Indian boundary can bring into
India
a. FCTC up to a certain limit
b. Foreign currency notes up to a certain limit
c. FCTC and Foreign currency notes without limit and INR CURRENCY up to Rs.25000
d. Indian currency without any limit
____________________________________________________________________________________________
467. The bank in the foreign country which issues GDR is called ________
a. repository
b. depository
c. custodian
d. sponsorer
____________________________________________________________________________________________
470. The field level authorities to ensure that Trade Control is followed by importer and exporter are:
a. EXIM Bank
b. AD
c. AP
d. Customs
____________________________________________________________________________________________
472. Rate of interest, if any, payable on the advance payment received against exports does not exceed LIBOR +
…………..basis points.
a. 100
b. 200
c. 250
d. 350
____________________________________________________________________________________________
473. The invoice which is sent as a Quotation by the seller to the buyer is called _________
a. Consular Invoice
b. Commercial Invoice
c. Visaed Invoice
d. Performa Invoice
____________________________________________________________________________________________
474. What is the maximum maturity period for Trade credit for import of Raw Material
a. 10 years
b. 5 Years
c. 3 years
d. 1 years
____________________________________________________________________________________________
469. B 470. D 471. C
472. A 473. D 474. D
Question Bank : International Banking, Treasury &Wealth Management
476. Advance Remittance for imports by public sector undertaking without guarantee issued by international bank of
repute is permitted up to
a. USD100000
b. USD500000
c. USD200000
d. USD300000
____________________________________________________________________________________________
478. Which is not true in respect of payments to a third party for import of goods
a. Third party payment should be made to a Financial Action Task Force (FATF) compliant country and through
the banking channel only;
b. The Invoice should contain a narration that the related payment has to be made to the (name third party)
c. Bill of Entry should mention the name of the shipper as also the narration that the related payment has to be
made to the (name third party;
d. The amount of an import transaction eligible for third party payment should not exceed USD 100,000.
____________________________________________________________________________________________
479. In case where import bills have been received directly by the importers from the overseas supplier, remittance
can be permitted without insisting on guarantee
a. USD 300,000
b. USD 100,000
c. USD 200,000
d. USD 500,000
____________________________________________________________________________________________
481. Advance payment for import of goods can be allowed by an AD up to the following amount without insisting
guarantee of a foreign bank.
a. USD 1 lac
b. Rs. 2 lac
c. Rs. 5 lac
d. USD 2.5 lac
____________________________________________________________________________________________
482. In case of all imports, where value of foreign exchange remitted/ paid for import into India exceeds USD
__________or its equivalent, it is obligatory on the part of the AD Category to ensure that the importer submits Bill of
Entry / Customs Assessment Ce
a. USD 1 lac
b. USD 25000
c. Rs. 1 lac
d. Rs. 25000
____________________________________________________________________________________________
483. In case of default in submission of evidence of import the Authorised Dealer has to submit the details of the
same to RBI in a statement called ___________
a. ENC
b. XOS
c. BEF
d. BIC
____________________________________________________________________________________________
485. Normally remittances against imports should be completed not later than ____months from the date of
shipment :
a. 3 months
b. 6 months
c. 9 months
d. 12 months
____________________________________________________________________________________________
486. What is the ceiling amount under trade credit for import of goods
a. USD 20 mio per transaction
b. USD 20 mio per financial year
c. USD 50 mio per transaction.
d. USD 20 mio per financial year
____________________________________________________________________________________________
481. B 482. A 483. C
484. B 485. B 486. A
Question Bank : International Banking, Treasury &Wealth Management
487. Remittances through Exchange Houses for financing trade transactions are permitted up to INR………….
a. 5 lakhs
b. 10 lakhs
c. 15 lakhs
d. 2 lakhs
____________________________________________________________________________________________
488. Advance payment for import of services can be allowed by an AD up to the following amount without insisting
guarantee of a foreign bank.
a. USD 1 lac
b. Rs. 2 lac
c. Rs. 5 lac
d. USD 2.5 lac
____________________________________________________________________________________________
489. For remittance other than import form to be used is ____ for remittance above USD equivalent of
a. A2 / 5000
b. A! / 5000
c. A2 / 25000
d. A1 NOT MANDATORY
____________________________________________________________________________________________
491. Which one of the following rules is included in Incoterms 2010 rules?
a. DAF Delivered at Frontier
b. DES Delivered Ex Ship
c. DEQ Delivered Ex Quay
d. DAP Delivered at Place
____________________________________________________________________________________________
492. Which is not true in respect of CPT Carriage Paid To (named place of destination)
a. CPT replaces C and F and CFR terms for all shipping modes outside of non-containerized seafreight.
b. Goods are considered to be delivered when the goods have been handed over to the first or main carrier so
that the risk transfers to buyer upon handing goods over to that carrier at the place of shipment in the country of
export.
c. Seller pays for the carriage of the goods upto the named place of destination.
d. CPT replaces C and F and CFR terms for all shipping modes outside of non-containerized seafreight.
____________________________________________________________________________________________
487. C 488. C 489. D
490. B 491. A 492. B
Question Bank : International Banking, Treasury &Wealth Management
493. Under DAT IncoTerm, which one of the following is not true?
a. Seller has no obligation towards the buyer of obtaining an insurance contract.
b. The exact place where the merchandise will be placed at disposal (quay, hoist etc) has to be specified.
c. The seller has to obtain import customs clearance.
d. The incoterm DAT was created specifically for the transportation of containers.
____________________________________________________________________________________________
499. As per ISBP International Standard Banking Practice for the Examination of Documents under Documentary
Credits 745 if the expression “documents acceptable as presented” is used which one of the following does it not
imply?
a. A presentation may consist of one or more of the stipulated documents provided they are presented with the
expiry date of the credit and drawing amount is within that which is available under the credit.
b. The documents will not be examined for compliance under the credit or UCP 600.
c. The documents will not be examined whether they are presented in the required number of originals or
copies.
d. None of these
500. As per ISBP International Standard Banking Practice for the Examination of Documents under Documentary
Credits 745 which one of the following is not true?
a. If a letter of credit states that the details of a shipping mark are to be evidenced on specific documents, these
details must be shown but not necessarily in the exact same sequence as expressed in the letter of credit.
b. Regarding description of goods, the invoice may indicate additional data in respect of the goods, service or
performance when compared to the letter of credit provided that such data does not appear to refer to a different
nature, classification or catego
c. In a bill of lading, if the port of loading is stated as “Mumbai” whereas the letter of credit indicates the port of
loading as “Mumbai, India” then it is a discrepancy .
d. In an Airway Bill, the carrier is to be identified by name and not merely by its IATA code. Airport can be
identified using its IATA code.
501. As per ISBP International Standard Banking Practice for the Examination of Documents under Documentary
Credits 745 which one of the following is not true in respect of expressions not defined in UCP 600?
a. „shipping documents‟: All documents, except drafts, teletransmission reports and courier receipts, postal
receipt or certificates of posting evidencing the sending of documents
b. “stale documents acceptable” (with or without specifying presentation period) presented later than 21 days
but within validity
c. “third party documents not acceptable” has meaning and is to be regarded.
d. “sjhipping company” as issuer relating to a transport document: carrier, master or when a charger party bill of
lading is presented, the master, ownere or chargerer, or any entity identified as an agent of any one of the
aforementioned, regardless of whet
____________________________________________________________________________________________
502. A letter of credit is _________of the issuing Bank to pay against stipulated documents:
a. a guarantee
b. an indemnity
c. an undertaking
d. a letter
____________________________________________________________________________________________
503. A letter of credit is always addressed to _________
a. importer
b. exporter
c. nominated bank
d. advising bank
504. The __________forms the basis for opening of a letter of credit:
a. sales contract
b. invoice accepted by buyer
c. electronic message
d. any one of the above
____________________________________________________________________________________________
499. D 500. C 501. C
502. C 503. B 504. D
Question Bank : International Banking, Treasury &Wealth Management
505. A foreign letter of credit usually will be issued in the form of a _____________
a. letter
b. coded message
c. SWIFT message
d. any of the above
____________________________________________________________________________________________
506. The primary liability to pay under an LC arrangement lies with ___________bank:
a. Issuing Bank
b. importer
c. exporter
d. negotiating bank
____________________________________________________________________________________________
508. The bank which is required to pay the nominated bank by debiting account of the LC opening bank is called
______ bank.
a. Correspondent
b. Paying
c. Reimbursing
d. Confirming Bank
____________________________________________________________________________________________
509. When documents are presented strictly confirming to the credit terms we say the credit is ___________
a. honoured
b. taken up
c. presented
d. drawn
____________________________________________________________________________________________
510. The expiry date of the LC is the last date by which the exporter can ___________
a. ship the goods
b. get paid
c. present documents
d. amend the sale contract
____________________________________________________________________________________________
505. C 506. A 507. B
508. C 509. C 510. C
Question Bank : International Banking, Treasury &Wealth Management
514. As per UCP 600, what is the time given to decide the documents are credit confirmed or not:
a. five banking days
b. two banking days
c. five working days
d. 7 working days
____________________________________________________________________________________________
515. LC which guards against the risk of failure of issuing bank is __________LC:
a. Irrevocable
b. Confirmed
c. Back to Back
d. Transit
____________________________________________________________________________________________
516. A payment credit usually does not stipulate the following documents:
a. Bill of Lading
b. Certificate of origin
c. Bill of Exchange
d. Packing List
____________________________________________________________________________________________
511. A 512. C 513. D
514. A 515. B 516. C
Question Bank : International Banking, Treasury &Wealth Management
520. Goods are shipped on 01.06.2016. The LC is silent as to the period after shipment within which the documents
are to be presented to nominated banks. The expiry date of the LC is 28.07.2016. In this case, what is the last date
of presentation of document?
a. 01.07.2016
b. 22.06.2016
c. 30.06.2016
d. 28.7.2016
____________________________________________________________________________________________
521. Expiry date of the credit falls on 15th January 2016, which is a holiday. The last date by which documents can
be presented to nominated bank is____________
a. 16.01.2016
b. 18.01.2016
c. 14.01.2016
d. 19.01.2016
____________________________________________________________________________________________
522. A credit limit provided to a bank by another bank or financial institution for use, to provide finance to borrowers:
a. Line of credit
b. Refinance
c. Second line of credit
d. Stand by credit
____________________________________________________________________________________________
517. C 518. D 519. B
520. D 521. A 522. A
Question Bank : International Banking, Treasury &Wealth Management
523. Unless otherwise specified in the LC, the following type of bill of lading should not be accepted as credit
compliant;
a. Charter Party B/L
b. B/L issued by freight forwarder
c. Claused bill of lading
d. All the above
____________________________________________________________________________________________
525. The on-board notation in a bill of lading must indicate the name of the __________ as per UCP:
a. Name of the city
b. Name of the carrying vessel
c. Route
d. Name of the Captain
____________________________________________________________________________________________
526. The LC is silent as to whether the B/L should be on board B/L or “Received for shipment B/L” the nominated
bank should insist for _________ B/L.
a. On board Bill of Lading
b. Received for shipment Bill of Lading
c. Confirmed Bill of Lading
d. Chartered party Bill of Lading
____________________________________________________________________________________________
527. An airway bill showing the following features can be considered credit compliant:
a. Not signed by the Carrier or his agent
b. Not showing the name of the Carrier
c. Not showing the port of loading
d. Indicating “Notified Party”
____________________________________________________________________________________________
528. In Marine Insurance Policy the insurable interest in the goods should exist at the time of _______
a. Taking up the policy
b. Availing finance from the banks
c. Loss of goods
d. Date of issue of policy
____________________________________________________________________________________________
523. D 524. C 525. B
526. A 527. D 528. A
Question Bank : International Banking, Treasury &Wealth Management
529. Unless specified otherwise in the LC, the insurance policy should be issued for an amount of ____% of
CIF/CIP value of the goods.
a. 100%
b. 110%
c. 95%
d. 90%
____________________________________________________________________________________________
530. Assignment of the insurance policy in favour of the bank is done by the assured by __________
a. Assignment deed
b. Transfer deed
c. Blank endorsement
d. Notice of assignment to insurance company
____________________________________________________________________________________________
532. What is the all in cost ceiling prescribed by RBI for ECB of more than 5 years (All in cost over 6 month
LIBOR?)
a. 450 basis points
b. 200 basis points
c. 300 basis points
d. 500 basis points
____________________________________________________________________________________________
533. Up to what amount prepayment of ECB can be permitted by an AD without prior approval of RBI?
a. 100 million
b. 250 million
c. 500 million
d. Pre payment allowed suject to compliance with the stipulated minimum average maturity as applicable to the
contracted loan
____________________________________________________________________________________________
534. When an issuing bank decides to refuse documents to discrepancies under a letter of credit they issued
subject to UCP600, which of the following the bank should do :-
a. Contact applicant and see whether the applicant will grant a waiver of the discrepancies
b. Notify the presenter of the documents of every discrepancy on which refusal is based
c. Notify the presenter either that they are holding the documents at the disposal of the presenter or that they
are returning them.
d. Send notice of refusal „immediately‟ upon deciding to refuse the documents
____________________________________________________________________________________________
529. B 530. D 531. B
532. A 533. D 534. B
Question Bank : International Banking, Treasury &Wealth Management
535. What happens if a confirming bank fails to examine documents before the end of fifth day following
presentation ?
a. The confirmation ceases to exist and the bank must forward the documents to the issuing bank for payment.
b. If the documents have no discrepancies, the confirming bank may owe past due interest for „wrongful‟
dishonour, but, if the documents do have discrepancies, nothing happens as their obligation is only to honour
compliant documents.
c. The confirming bank becomes obligated to pay even if the document s contain discrepancies
d. The confirming bank must send a notice of refusal stating the reasons the bank was unable to examine the
documents within the 5 banking days
____________________________________________________________________________________________
536. Under UPC600, what happens to LC that expired before the bank closed due to „force majore,
a. The bank will pay for compliant documents that were presented before the day the bank closed, even though
they were not examined until after the bank reopened.
b. The bank will accepts presentation of documents within 30 calendar days after they reopen, as long as they
are dated prion to the expiration dates of the respective LC
c. If the beneficiary presented „ X‟ days before the bank closure to force majore, they will be allowed „X” + 5
days after the bank reopens to correct discrepancies
d. Bank will be given 5 banking after reopen for notifying discrepancies
____________________________________________________________________________________________
537. The expiry date of L.C. is 16th March 2015. It is the last date for
a. Presentation of documents to nominated bank
b. Despatch of documents
c. Shipment
d. Receipt of payment
____________________________________________________________________________________________
538. A Letter of Credit issued in favour of your exporter customer dealing in agro products provides for allowing pre
shipment credit. Such LC can be classified as
a. Confirmed letter of credit
b. Back to back credit
c. Red clause letter of credit
d. Green clause letter of credit
____________________________________________________________________________________________
539. The expiry date of the credit falls on 26th January which is a public holiday. In such situation the documents for
negotiation can be submitted to the negotiating bank on
a. The succeeding working day
b. Within next 5 banking days
c. The succeeding banking day
d. The preceding business day
____________________________________________________________________________________________
540. Definition for Negotiation, Hounour, Complying presentation etc are defined in UCP 600 in Article
a. 1
b. 3
c. 4
d. 5
____________________________________________________________________________________________
535. C 536. A 537. A
538. C 539. C 540. B
Question Bank : International Banking, Treasury &Wealth Management
541. As per UCP 600, the word 'about' & approximately" allow tolerance level of ____ % more or less than the
amount, quantity or the unit price to which they refer
a. 25%
b. 15%
c. 10%
d. 5%
____________________________________________________________________________________________
542. Which of the following is in correct
a. More than one set of transport documents of the same means of conveyance and for the same journey and
destination will not be regarded as partial shipment
b. If more than one converyance, then it will be regarded as partial shipment
c. Transfereable credit can be transferred by the second beneficiary
d. Transferable credit can be transferrred to any number of second beneficiary
____________________________________________________________________________________________
543. Which of the following is not true in respect of Letter of Credit from the point of view of an importer?
a. Importer is assured that for the exporter to be paid all terms and conditions of the letter of credit must be
met.
b. A letter of credit assures correct documentation and correct goods.
c. Ability to negotiate more favourable trade terms with the exporter when payment by Letter of Credit is
offered.
d. None of these
____________________________________________________________________________________________
544. In respect of a letter of credit, from the point of view of the exporter which one of the following is not true?
a. Exporter will receive payment under the letter of credit provided that he has met all terms and conditions of
the letter of credit and LC issuing bank gives this undertaking.
b. LC shifts credit risk from the importer to the issuing bank.
c. Exporeter is under an obligation to ship against a letter of credit that is not issued as agreed.
d. None of these.
____________________________________________________________________________________________
545. Which one of the following is not true in respect of Standby LCs or Guarantees?
a. Often Standby letter of credits are used instead of guarantees. Standby lc work in much the same way as
guarantees offering financial assurance to the importer if the exporter defaults on agreed-upon contractual
obligations.
b. Standby Letters of Credit are governed by the International Chamber of Commerce‟s UCP while Guarantees
are subject to the laws of the country of the Issuing Bank.
c. Banks in several countries, including the United States are not empowered to issue Guarantees, and
therefore use Standby Letters of Credit instead.
d. None of these.
____________________________________________________________________________________________
546. Which one of the following is not true about UCPDC
a. The Uniform Customs and Practice for Documentary Credits (UCP) is a set of rules on the issuance and use
of letters of credit.
b. The International Chamber of Commerce publishes and revises UCPDC
c. Latest UCP version is UCP 600 which formally commenced on 01July 2007
d. Documentary letter of credit is an instrument by which a bank undertakes to make payment to a buyer on
production of documents drawn in accordance with the terms of the credit
____________________________________________________________________________________________
541. C 542. C 543. B
544. C 545. D 546. D
Question Bank : International Banking, Treasury &Wealth Management
547. Identify the wrong statement (description) in the following parties to a letter of credit:
a. Applicant is the buyer of goods
b. Advising bank is the bank to whom the LC is sent for onward transmission to the seller.
c. Negotiating Bank is the bank which undertakes the responsibility of issuing Bank on his failure.
d. Reimbursing bank is the third bank which repays / settles the funds at the request of the issuing Bank
____________________________________________________________________________________________
548. Which Letter of Credit permits advance for storage of goods in addition to pre-shipment advance?
a. Red Clause LC
b. Green Clause LC
c. Stand by LC
d. Revolving LC
____________________________________________________________________________________________
549. Which letter of credit permits negotiating bank to grant packing credit to the beneficiary at the issuing bank's
responsibility?
a. Red Clause LC
b. Green Clause LC
c. Stand by LC
d. Revolving LC
____________________________________________________________________________________________
553. Which of the following statements is not true regarding joint accounts?
a. Joint Account in NRE SB is possible with resident indians on Either or Survivor Mode of operation.
b. Joint account in NRE SB is permitted with NRIs
c. Joint Account in NRE SB is permitted with resident Indians on Former or Survivor Mode of Operation
d. All the above three statements are true.
____________________________________________________________________________________________
554. Which one of the following is not true regarding the facility to grant loan in rupees to NRI / PIO close relative?
a. Resident individual is permitted to lend to an NRI/PIO close relative subject to certain conditions.
b. The loan should be free of interest
c. The minimum maturity of the loan should be two years
d. The loan should be within the overall limit under LERMS available for a resident individual.
____________________________________________________________________________________________
555. Who are permitted to open and maintain rupee accounts for Non Resident Indians
a. AD only
b. RRBs
c. FABs
d. All Branches
____________________________________________________________________________________________
564. Release of Foreign Exchange for Miscellaneous remittances without documentation formalities
a. USD5000
b. USD10000
c. USD25000
d. USD250000
____________________________________________________________________________________________
559. D 560. B 561. C
562. D 563. C 564. C
Question Bank : International Banking, Treasury &Wealth Management
569. Which one of the condition should be satisfied so as to constitute a person as resident in India under FEMA
a. He should have stayed in India for 182 days
b. He should have been in India for 182 days during the previous year
c. He should have been in India for 182 days during the previous calendar year
d. He should have been in India for more than 182 days during the previous financial year
____________________________________________________________________________________________
570. Shri Gupta a resident of Delhi had shifted to Germany as immigrant and ultimately married a Germany girl
Lisa. What is the residential status of Mrs.Liza.
a. An Indian resident
b. A foreigner
c. A person of Indian origin
d. An alien friend
____________________________________________________________________________________________
565. A 566. C 567. D
568. D 569. D 570. C
Question Bank : International Banking, Treasury &Wealth Management
571. What is the limit under LRS Liberalised Remittance Scheme to resident individuals?
a. Upto USD 250000 per calendar year
b. Upto USD 250000 per financial year
c. Upto USD 200000 per calendar year
d. Upto USD 200000 per financial year
____________________________________________________________________________________________
572. For online submission of A2 Form which one of the following is not true?
a. The remittances on the basis of online submission will be available for transactions with an upper limit of
USD 25000/- (or its equivalent) for individuals
b. The remittances on the basis of online submission will be available for transactions with an upper limit of
USD 100000/- (or its equivalent) for corporate clients
c. The remittances on the basis of online submission will be available for transactions with an upper limit of
USD 200000/- (or its equivalent) for corporate clients
d. If the home branch of the client is a NAB, the NAB will select the nearest AD branch from the drop down and
update the same in the portal.
____________________________________________________________________________________________
573. Which one of the following is not true in respect of handling of foreign exchange requirements of customers of
non authorized branches?
a. KYC compliance is to be authenticated/certified by the non authorized branch.
b. KYC compliance is to be authenticated/certified by the authorized branch.
c. Adherence to FEMA guidelines is the responsibility of the Authorized branch.
d. Forex authorized branches will be handling the transactions only after receiving full underlying documents
alongwith A2 application duly certified / authenticated by the nonauthorized branches.
____________________________________________________________________________________________
574. An NRI/PIO can repatriate the sale proceeds of property inherited by him out of his NRO account up to
USD………….in a financial year.
a. 1, 00,000
b. 2, 50,000
c. 5, 00,000
d. 10, 00,000
____________________________________________________________________________________________
575. For remittance other than import form to be used is ____ for remittance above USD equivalent of _______
a. A2 / 5000
b. A1 / 5000
c. A2 / 25000
d. A1 / 25000
____________________________________________________________________________________________
576. The A/c exporters and other exchange earners to retain a portion of their receipts in foreign exchange with an
AD is
a. RFC
b. EEFC
c. NRE
d. NRO
____________________________________________________________________________________________
571. B 572. C 573. B
574. D 575. C 576. B
Question Bank : International Banking, Treasury &Wealth Management
577. A resident in India who was earlier an NRI (One year stay abroad) and became resident on or after 18/04/92 &
A/c held in Foreign Currency is
a. RFC
b. EEFC
c. NRE
d. NRO
____________________________________________________________________________________________
578. Individual residents in India are now permitted to include non-resident close relative(s) as joint holder(s) in their
resident bank accounts, namely, Savings (SB), Exporter Earners‟ Foreign Currency (EEFC) and Residents‟ Foreign
Currency (RFC) accounts
a. E or S
b. F or S
c. Jointly
d. None
____________________________________________________________________________________________
579. Non-Resident Indians (NRIs)/Person of Indian Origin (PIO), are now permitted to open Non-Resident
(External) (NRE) Rupee Account Scheme/Foreign Currency (Non-Resident) (FCNR) Account (Banks) Scheme with
their resident close relatives(s) as Joint Holder(s)
a. E or S
b. F or S
c. Jointly
d. None
____________________________________________________________________________________________
580. Interest is payable on NRE term deposits pre-closed before one year from the date of opening of the said
deposit.
a. Card rate
b. No Interest
c. at applicable card rate at the time of opening of the said deposit for the actual period run shall be paid
d. Simple SB Interest
____________________________________________________________________________________________
581. Interest payable to Bank‟s own staff in respect of NRE/NRO deposits is
a. +' 1
b. No Interest
c. Staff rate not applicable
d. None
____________________________________________________________________________________________
582. Which bank account of a foreign student on the basis of his/her passport (with appropriate visa & immigration
endorsement) which contains the proof of identity and address in the home country along with a photograph and a
letter offering admission from th
a. NRO
b. FCNR
c. NRE
d. RFC (DOMESTIC)
____________________________________________________________________________________________
577. A 578. B 579. A
580. B 581. C 582. A
Question Bank : International Banking, Treasury &Wealth Management
584. An Association of ADs formed with the approval of RBI to ensure that uniformity is maintained in the handling
of all forex transactions is
a. FEMA
b. IBA
c. RBI
d. FEDAI
____________________________________________________________________________________________
586. Foreign exchange transactions between the bank and the customers is known as
a. Merchant transactions
b. Inter bank transaction
c. Export
d. Import
____________________________________________________________________________________________
587. In a „Purchase Transaction‟ the bank ----- foreign currency from the customer and pays him the local currency
a. sells
b. forward purchase
c. acquires
d. forward
____________________________________________________________________________________________
588. In a „Sale Transaction‟ the bank ---- foreign currency to the customer receiving from him Indian rupees
a. sells
b. forward purchase
c. acquires
d. forward
____________________________________________________________________________________________
583. C 584. D 585. B
586. A 587. C 588. A
Question Bank : International Banking, Treasury &Wealth Management
589. FEMA has come into effect from the following date
a. 01.01.2000
b. 01.01.1999
c. 01.06.2000
d. 01.06.1999
____________________________________________________________________________________________
590. Which of the following categories of branches are not permitted to open a Nostro account
a. Category B
b. Category A
c. Category C
d. Both Category B & C
____________________________________________________________________________________________
592. The act which stipulates that all associations should receive foreign assistance only through registered
accounts is called
a. FEMA
b. FERA
c. FCRA
d. BCI
____________________________________________________________________________________________
593. Certain Institutions, for receiving foreign contribution, have to obtain registration from
a. GOI, Finance Ministry
b. GOI, Finance Ministry
c. GOI, Finance Ministry
d. RBI
____________________________________________________________________________________________
595. The document which provides for control & regulation of foreign trade by the Central Govt. is
a. FEMA
b. FT POLICY
c. FERA
d. FERA
____________________________________________________________________________________________
599. Foreign Nationals can remit --------% of the salary in India to his foreign currency A/c with a bank outside India
a. 25
b. 50
c. 75
d. 100
____________________________________________________________________________________________
600. Indian currency that a Resident Indian travelling to Nepal & Bhutan may carry or bring back
a. 100000
b. 200000
c. 250000
d. No restriction
____________________________________________________________________________________________
595. B 596. A 597. D
598. D 599. D 600. D
Question Bank : International Banking, Treasury &Wealth Management
601. The maximum denomination of Indian currency notes which can be taken/ brought into India from / to Nepal /
Bhutan is _____
a. 50
b. 100
c. 500
d. 1000
____________________________________________________________________________________________
602. Maximum amount of foreign currency a resident can receive from a non resident on a visit to India towards
sale price of goods/services in India is USD ______
a. USD 10000 or equivalent
b. USD 2000 or equivalent
c. USD 5000 or equivalent
d. No limit
____________________________________________________________________________________________
603. Unused foreign exchange taken for travel in the form of currency notes is to be surrendered to an AD within
____ days of return
a. 180 days
b. 90 days
c. 360 days
d. 270 days
____________________________________________________________________________________________
604. The maximum amount of foreign exchange a person is permitted to hold for any length of time is USD _____
a. 5000
b. 2000
c. 10000
d. 50000
____________________________________________________________________________________________
605. The maximum amount of Indian currency which a resident can take to any country other than Nepal/ Bhutan is
___
a. 7500
b. 2000
c. 10000
d. Only INR of denomination of 100 or lesser denomination is allowed without limit
____________________________________________________________________________________________
606. The maximum amount of Indian currency which a person can bring into India from any country other than
Nepal/ Bhuta
a. 5000
b. 10000
c. 25000
d. 50000
____________________________________________________________________________________________
601. B 602. D 603. A
604. B 605. D 606. C
Question Bank : International Banking, Treasury &Wealth Management
607. RBI has permitted resident individuals to open the following three types of foreign currency accounts
a. RFC, NRNRD, EEFC, FCNR(B)
b. RFC, RFC (Domestic), EEFC
c. NRO, RFC, EEFC
d. NRO, NRNRD, RFC
____________________________________________________________________________________________
608. AD I banks may now allow remittance up to USD ____, per financial year, under the liberalised Remittance
Scheme for Resident Individuals, for any permitted current or capital account transaction or a combination of b
a. 10000
b. 25000
c. 250000
d. 100000
____________________________________________________________________________________________
609. New York branch of Model Bank in India opens an account with its Mumbai branch. For Mumbai branch, this
account is
a. Nostro account
b. Vostro account
c. Loro account
d. Ordinary account
____________________________________________________________________________________________
610. Any person in India is permitted to Hold foreign Coins up to a limit of USD
a. 5000
b. 2500
c. 1000
d. No such limit
____________________________________________________________________________________________
611. For a person resident in India, a transaction which alters the asset or liability position outside India is called a
_________ transaction
a. Capital Account
b. Current Account
c. Asset/ Liability position
d. Position Account
____________________________________________________________________________________________
612. An Indian resident acquires immovable property in New York. It comes under _________ transaction
a. Capital Account
b. Current Account
c. Asset/ Liability position
d. Position Account
____________________________________________________________________________________________
607. B 608. C 609. D
610. D 611. A 612. A
Question Bank : International Banking, Treasury &Wealth Management
613. ADs are permitted to release FX up to USD _____ for all Miscellaneous remittance transactions on basis of
simple declaration
a. 5000
b. 2000
c. 25000
d. 50000
____________________________________________________________________________________________
614. Maximum amount that can be released to resident for medical treatment abroad (USD) without reference to
RBI
a. 50000
b. 250000
c. 100000
d. 200000
____________________________________________________________________________________________
615. Maximum amount that can be released by an AD for study abroad, without RBI‟s prior approval in USD
a. 250000
b. 50000
c. 100000
d. 200000
____________________________________________________________________________________________
616. Maximum amount that can be released by an AD for business travel abroad, without RBI‟s prior approval in
USD
a. 50000
b. 25000
c. 100000
d. 200000
____________________________________________________________________________________________
617. Maximum amount that can be released by an AD for private travel abroad, without RBI‟s prior approval in USD
a. 10000
b. 25000
c. 100000
d. 250000
____________________________________________________________________________________________
618. What is not true about MONEY GRAM / XPRESS MONEY / WESTERN UNION :
a. Only 30 inward remittances per beneficiary per calendar year permitted.
b. Only personal remittances are permitted such as remittances towards family maintenance and remittances
favouring foreign tourists visiting India are permissible
c. Credit to NRE accounts is permitte
d. Only a maximum of USD 2500 or its equivalent per transaction is permitted
____________________________________________________________________________________________
613. C 614. B 615. A
616. B 617. D 618. C
Question Bank : International Banking, Treasury &Wealth Management
620. A Person making remittance to a non-resident or a foreign company has to submit 15CB if the amount of
remittance exceeds Rs
a. 50000 per transaction
b. Rs 250000/- in a year
c. Rs 500000/-
d. either (a) or (b)
____________________________________________________________________________________________
622. What is the maximum amount of cash in INR that could be tendered for obtaining foreign exchange by a
resident in India
a. Rs.10000
b. Rs.20000
c. Rs.50000
d. Rs.100000
____________________________________________________________________________________________
626. Which one of the following must be ensured at the time of closure of FCNR(B) deposits and subsequent
remittance of funds?
a. Obtention of A2 Form
b. Ensuring the physical presence of the account holder
c. Recording by asking for the purpose of remittance
d. None of these
____________________________________________________________________________________________
627. What is the maximum amount of funds upto which migrant Nepalese workers in India can remit funds from
India to Nepal.?
a. Upto Rs.20,000/-
b. Upto Rs.30,000/-
c. Upto Rs.40,000/-
d. Upto Rs.50,000/-
____________________________________________________________________________________________
628. What is the mode under which funds can be transferred from India to Nepal by migrant Nepalese workers in
India to remit money back to their families in Nepal?
a. RTGS Interbank transfer
b. NEFT
c. SWIFT
d. None of these
____________________________________________________________________________________________
629. What is the name of the money transfer company in Nepal which would make arrangements for delivery of
cash in Nepalese rupees to the beneficiary for remittances from India to Nepal?
a. Prabhu Money Transfer
b. Dhayal Money Transfer
c. Lakshmi Money Transfer
d. Sivaji Money Transfer
____________________________________________________________________________________________
630. Which one of the following is Not a minimum document needed to be presented by the remitter from India to
Nepal as part of KYC requirements?
a. Passport
b. Aadhar
c. Pan
d. There is no need for KYC document if the remitting customer maintains an account with a bank branch in
India
____________________________________________________________________________________________
625. D 626. D 627. D
628. B 629. A 630. B
Question Bank : International Banking, Treasury &Wealth Management
631. Which Bank handles the Indo-Nepal Remittance Facility Scheme from India to Nepal?
a. State Bank of India
b. Union Bank of India
c. Nepal SBI Ltd.
d. United Bank of India
____________________________________________________________________________________________
632. Which one of the following is not true in respect of charges towards Indo-Nepal Remittance Facility Scheme?
a. Minimum Rs.25; Maximum Rs.100 depending on value of transaction
b. Entire charges to be recovered from the remitter.
c. Minimum Rs.50; Maximum Rs.200 depending on value of transaction
d. In case beneficiary does not maintain an account with NSBL, an additional amount of Rs.50 would be
charged for remittances upto Rs.5000/- and Rs.75 for remittances above Rs.5000/-
____________________________________________________________________________________________
633. What is the maximum number of remittances allowed under Indo-Nepal Remittance Facility Scheme in a year?
a. 8
b. 10
c. 12
d. 15
____________________________________________________________________________________________
636. What is the type of account that can be opened under RFC (D) Resident Foreign Currency (Domestic)
Account?
a. Only Savings Account
b. Only Current Account
c. Only Term Deposit Account
d. Either as a Savings Account or as a Current Account
____________________________________________________________________________________________
631. C 632. C 633. C
634. D 635. B 636. B
Question Bank : International Banking, Treasury &Wealth Management
637. Which one of the following statements on Interest Payment is true with regard to RFC(D) Account?
a. Interest is payable at par with SB rate
b. No interest is payable on this deposit
c. Interest is fixed based on LIBOR rate
d. Interest is payable for the corresponding period as applicable to Domestic Term Deposits
____________________________________________________________________________________________
638. Which one of the following funds cannot be deposited in an RFC(D) Account?
a. Unspent foreign exchange acquired during travel abroad
b. Foreign exchange acquired while on a visit abroad
c. Foreign exchange acquired from any person on visit to India or honorarium or gift or for services or
settlement of any lawful obligation
d. None of these
____________________________________________________________________________________________
639. Which one of the following statement is not true in respect of RFC(D) Accounts?
a. Debits to the account shall be for payments towards a current account transaction in accordance with the
provisions of the Foreign Exchange Management (Current Account Transactions) Rules 2000
b. Debits to the account shall be for payments towards a capital account transaction permissible under the
Foreign Exchange Management (Permissible Capital Account Transactions) Regulations 2000
c. There shall be no ceiling in the balances in the account.
d. None of these
____________________________________________________________________________________________
640. In respect of RFC(D) Accounts which one of the following is not true?
a. Axis Bank does not allow cash withdrawal in foreign currency from RFC(D) accounts.
b. In HDFC Bank, the account holder has to transfer withdrawal money to a normal rupee savings or current
account and take it from there.
c. ICICI Bank provides an RFC(D) account in Japanese Yen as well.
d. None of these
____________________________________________________________________________________________
642. What is the swift message type to be used for financial Institution transfer
a. MT 100
b. MT 103
c. MT 202
d. MT 700
____________________________________________________________________________________________
637. B 638. D 639. D
640. D 641. C 642. B
Question Bank : International Banking, Treasury &Wealth Management
644. On a SWIFT MT700 if the goods description field 45A reads: “Red / Blue / Yellow sweatshirts according to PO
number 76598654” with no further clarification what does the said documentary credit imply?
a. The documents presented could evidence only Red or only Blue or only Yellow sweatshirts
b. Under General Principles virgules (slash marks “/”) are encouraged.
c. The documents presented could evidence only Red or only Blue or only Yellow, or any combination of them
d. None of these
____________________________________________________________________________________________
646. For Trade Credit LOC/LOU/Guarantee Can be issued by banks in India for a Maximum Period of
a. 3 years
b. 5 years
c. 2 years
d. 1 year
____________________________________________________________________________________________
648. Which one of the following relationships between fluctuations in exchange rates and foreign exchange gains
and losses is true?
a. For an import purchase, a gain results when foreign currency appreciates.
b. For an export sale, a loss results when foreign currency appreciates
c. For an export sale, a gain results when foreign currency appreciates.
d. For an import purchase, a loss results when foreign currency depreciates.
____________________________________________________________________________________________
643. B 644. C 645. D
646. A 647. C 648. C
Question Bank : International Banking, Treasury &Wealth Management
649. In case of Trade Credit the all-in-cost should not exceed ________ point over 6 months LIBOR(London Inter
Bank Offer Rate) for maturity period upto 5 years.
a. 300 basis
b. 250 basis
c. 400 basis
d. 350 basis
____________________________________________________________________________________________
651. Out of the following methods of payment in International Trade, in which case the goods is available to the
buyers before payment
a. Cash In Advance
b. Letter of Credit
c. Open Account
d. Documentary Credit/Bill of Exchange
____________________________________________________________________________________________
652. How many days of prior online filing facility for shipping bills has been provided by the Customs as per latest
Foreign Trade Policy?
a. 5 days for air shipments and ICDs and 10 days for shipments by sea
b. 7 days for air shipments and ICDs and 10 days for shipments by sea
c. 7 days for air shipments and ICDs and 12 days for shipments by sea
d. 7 days for air shipments and ICDs and 14 days for shipments by sea
____________________________________________________________________________________________
653. As per latest Trade Policy what is the threshold limit for a town to become eligible for notification as TEE
(Towns of Export Excellence)
a. Rs.500 crore other than handloom, handicraft, agriculture and fisheries sector
b. Rs.600 crore other than handloom, handicraft, agriculture and fisheries sector
c. Rs.700 crore other than handloom, handicraft, agriculture and fisheries sector
d. Rs.750 crore other than handloom, handicraft, agriculture and fisheries sector
____________________________________________________________________________________________
654. As per latest Trade Policy what is the threshold limit for a town to become eligible for notification as TEE
(Towns of Export Excellence) for TEE in Handloom, Handicraft, Agriculture and Fisheries Sector
a. Rs.150 crore other than handloom, handicraft, agriculture and fisheries sector
b. Rs.300 crore other than handloom, handicraft, agriculture and fisheries sector
c. Rs.450 crore other than handloom, handicraft, agriculture and fisheries sector
d. Rs.600 crore other than handloom, handicraft, agriculture and fisheries sector
____________________________________________________________________________________________
649. D 650. C 651. C
652. D 653. D 654. A
Question Bank : International Banking, Treasury &Wealth Management
655. What is the maximum value of goods including edible items that can be exported as a gift in a licensing year
other than those restricted for exports in ITC(HS).
a. Rs.3 Lakhs
b. Rs.4 Lakhs
c. Rs.5 Lakhs
d. Rs.2 Lakhs
____________________________________________________________________________________________
656. How many years of export performance is necessary for an exporter to be granted status?
a. In atleast 3 out of 4 years
b. In atleast 4 out of 5 years
c. In atleast 1 out of 2 years
d. In atleast 2 out of 3 years
____________________________________________________________________________________________
657. Under which category shall Double weightage be given for a status holder exporter?
a. Manufacturing units having ISO/BIS
b. MSME as defined in MSMED Act 2006
c. Units located in NE states including Sikkim and J and K
d. Units located in Agri Export Zones
____________________________________________________________________________________________
658. Out of the following export status holders, which category is eligible for double weightage?
a. for grant of upto two Star Export House Status category.
b. for grant of upto four Star Export House Status category.
c. for grant of upto three Star Export House Status category.
d. for grant of One Star Export House Status category only.
____________________________________________________________________________________________
659. Which one of the following is not true in respect of EPCG Scheme?
a. Second hand capital goods shall also be permitted to be imported under EPCG Scheme.
b. Import under EPCG Scheme shall be subject to an export obligation equivalent to 6 times of duty saved on
capital goods to be fulfuilled in 6 years reckoned from date of issue of Authorisation.
c. EPCG Scheme allows import of capital goods for pre-production, production and post-production at Zero
customs duty.
d. Revalidation of EPCG Authorisation shall not be permitted.
____________________________________________________________________________________________
660. Which one of the following is not true in respect of Deemed Exports?
a. Supply of goods to EOU/STP/EHTP/BTP by a manufacturer shall be regarded as Deemed Exports.
b. Deemed exports refer to those transactions in which goods supplied leave the country and payment for such
supplies is received either in Indian Rupees or in free foreign exchange.
c. Supply of capital goods against EPCG Authorisation by a manufacturer shall be regarded as Deemed
Exports.
d. Supply of goods by a main or sub-contractor to United Nations or International Organisations for their official
use or supplied to the projects financed by the said UN or an International Organisation approved by
Government of India shall be regarded as D
____________________________________________________________________________________________
655. C 656. D 657. B
658. D 659. A 660. B
Question Bank : International Banking, Treasury &Wealth Management
661. Under Foreign Trade Policy, what is the date on which a licensing year starts on?
a. 1st January of every year
b. 1st July of every year
c. 1st April of every year
d. 1st August of every year
____________________________________________________________________________________________
662. In case of Third Party Exports, which one of the following will not be in the name of the third party exporter?
a. Bank Realisation Certificate
b. Self Declaration Form
c. Export Order and Invoice
d. None of these
____________________________________________________________________________________________
663. The document which provides for control & regulation of foreign trade by the Central Govt. is
a. FEMA
b. FT Policy
c. FC R Act
d. FERA
____________________________________________________________________________________________
664. Name the two schemes introduced under the new foreign trade policy?
a. Merchandise Export from India Scheme & Services Export from India Scheme
b. Services Export from India Scheme & Services Import from India Scheme
c. Services Import from India Scheme & Merchandise Export from India Scheme
d. Merchandise Import from India Scheme & Services Export from India Scheme
____________________________________________________________________________________________
665. Which one of the following statements is not true about Derivatives?
a. Derivative is a financial contract between two or more parties which is derived from the future value of an
underlying asset (financial instrument).
b. A Derivative contract has a price of its own.
c. The underlying asset in a derivative can range from equity (share price or bond price) or foreign exchange
rate or interest rate or commodity like crude oil or gold etc.
d. The underlying asset does not have to be acquired in a derivative.
____________________________________________________________________________________________
666. Which one of the following is not a stated objective of usage of derivatives?
a. Insuring against price movements
b. Getting access to easily tradeable assets
c. Risk Management
d. Speculation
____________________________________________________________________________________________
661. C 662. A 663. B
664. A 665. B 666. B
Question Bank : International Banking, Treasury &Wealth Management
670. Who is the author of the famous quote: "Derivatives are the weapons of mass destruction"
a. Bill Gates
b. Mark Zuckerberg
c. Sir Richard Charles Nicholas Branson
d. Warren Buffet
____________________________________________________________________________________________
673. Which one of the following statements is not true about OTC Over the counter derivatives
a. OTC derivatives are those which are privately traded between two parties
b. Non-standard products are traded in the OTC derivatives markets.
c. OTC Derivatives Market involves exhange and intermediaries.
d. Government sponsored enterprises are also included in OTC derivative market.
____________________________________________________________________________________________
674. Among the following classification of derivatives, identify the wrongly matched pair.
a. Future Contracts and OTC Over the counter trading
b. Options and OTC Over the Counter Trading
c. Forward Contracts and OTC Over the Counter Trading
d. Swaps and Exchange Traded Derivatives.,
____________________________________________________________________________________________
676. Which term explains a non-standardized contract between two parties to buy or sell an asset at a specified
future time at a price agreed today?
a. Swap Contract
b. Futures contract
c. Option
d. Forward Contract
____________________________________________________________________________________________
677. What do we call a derivative financial instrument that specifies a contract between two parties for a future
transaction on an asset at a reference price wherein the buyer gains the right but not the obligation to engage in that
transaction while the sell
a. Futures Contract
b. Option
c. Swap Contract
d. Forward Contract
____________________________________________________________________________________________
678. Which term describes the derivative in which counterparties exchange certain benefits of one party's financial
instrument for those of the other party's financial instrument wherein the benefits in question depend on the type of
financial instruments invo
a. Futures Contract
b. Option
c. Swap Contract
d. Forward Contract
____________________________________________________________________________________________
673. C 674. C 675. B
676. D 677. B 678. C
Question Bank : International Banking, Treasury &Wealth Management
679. A standardized contract between two parties to exchange a specified asset of standardized quantity and
quality for a price agreed today (the futures price or the strike price) with delivery occuring at a specified future date,
the delivery date is called
a. Futures Contract
b. Option
c. Swap Contract
d. Forward Contract
____________________________________________________________________________________________
681. When a person takes advantage by selling and buying of a currency in two different markets to take advantage
of price differential prevailing at these markets, it is called
a. Swap
b. Forward
c. Value date
d. Arbitrage
____________________________________________________________________________________________
683. Financial instruments whose value depends upon the underlying assets is known as
a. Swap
b. Derivatives.
c. Option
d. Interest rate swaps
____________________________________________________________________________________________
684. When forex operations are carried to cover the risk of forex rate fluctuations it is called
a. Swap
b. hedging
c. Arbitration
d. Speculation
____________________________________________________________________________________________
679. A 680. C 681. D
682. A 683. B 684. B
Question Bank : International Banking, Treasury &Wealth Management
685. From which date Uniform Customs and Practice for Documentary Credits 600 have been revised
a. wef 01/04/2007
b. wef 01/07/2007
c. wef 01/10/2007
d. wef 01/01/2007
____________________________________________________________________________________________
686. Who has revised UCPDC 600 Uniform Customs and Practice for Documentary Credits 600
a. Bank for International Settlement
b. World Bank and IMF
c. International Chamber of Commerce
d. United Nations Organisation
____________________________________________________________________________________________
687. Among the following, to which one does UCPDC 600 provisions apply to?
a. Any LC when its text expressly indicates that is is subject to these rules
b. Any LC in which these have not been restricted to be applicable
c. All Letter of Credits
d. All Foreign Letter of Credits only
____________________________________________________________________________________________
688. Under URC522 which one of the following is not true?
a. The Payment Collection of Bills also called “Uniform Rules for Collections” is published by International
Chamber of Commerce (ICC) under the document number 522 (URC522).
b. Under URC 522, in international trade the exporter entrusts the handling of commercial and often financial
documents to banks and gives the banks necessary instructions concerning the release of documents to banks
and gives the banks necessary instruction
c. URC 522 method is considered to be one of the cost effective methods of evidencing a transaction for
buyers, where documents are manipulated via the banking system.
d. None of these.
____________________________________________________________________________________________
689. Which one of the following is not a role of the collecting bank under URC 522 (Foreign Bills under Collection
Mechanism)?
a. The collecting bank remits the proceeds of the bill according to the Remitting bank‟s schedule instructions.
b. The collecting bank presents the bill to the buyer for payment or acceptance.
c. The collecting bank releases the documents to the buyer when the exporter‟s instructions have been
followed.
d. Importer‟s bank guarantees payment of the amount specified in the bill.
____________________________________________________________________________________________
690. If the bill is unpaid / unaccepted, which one of the following is not true in respect of the collecting bank under
URC 522 (Foreign Bills under collection mechanism)?
a. The collecting bank may arrange storage and insurance for the goods as per remitting bank instructions on
the schedule.
b. The collecting bank protests on behalf of the remitting bank if the remitting bank‟s schedule states protest.
c. The collecting bank requests further instruction from the remitting bank if there is a problem that is not
covered by the instructions in the schedule.
d. None of the above
____________________________________________________________________________________________
685. B 686. C 687. A
688. D 689. D 690. D
Question Bank : International Banking, Treasury &Wealth Management
691. Under URC 522 (Foreign Bills under collection mechanism) within how many working days of presentation, the
drawee is usually expected to pay under D/P Documents against payments?
a. within 5 working days of presentation
b. within 21 working days of presentation
c. within 7 working days of presentation
d. within 3 working days of presentation.
____________________________________________________________________________________________
692. Which one of the following is not true under D/P Documents against payments terms as per URC 522 (Foreign
Bills under collection mechanishm)?
a. The exporter keeps control of the goods through the banks until the importer pays.
b. If the importer refuses to pay, the exporter can protest the bill and take the importer to court.
c. If the importer refuses to pay, the exporter can find another buyer or arrange a sale by an auction.
d. None of the above
____________________________________________________________________________________________
693. From which date, URDG 758 (The Uniform Rules for Demand Guarantees 758) came into force?
a. 01st December 2009
b. 01st July 2010
c. 01st July 2009
d. 01st January 2010
____________________________________________________________________________________________
694. Which one of the following is not true regarding URDG 758
a. URDG 758 sets out the roles and responsibilities of all parties at each key stage of the life cycle of a demand
guarantee
b. URDG 758 ia an international law.
c. URDG 758 reflects best practice in the guarantee business.
d. Under URDG 758 Banks if they choose to do so now have another offering in their product set that their
clients may opt to use when considering how to best support their corss-border business.
____________________________________________________________________________________________
695. Among the following which is not true about revised Uniform Rules for Demand Guarantees URDG 758
a. Presentation of a claim must be made at the place of issue or such other specified place on or before expiry
of the guarantee.
b. If a presentation indicates that it is incomplete, it can then be completed on or before expiry.
c. An incomplete presentation is unlikely to occur in practice but if it does happen the beneficiary does not
suffer a technical knock-out for failing to provide everything in one envelope.
d. None of the above
____________________________________________________________________________________________
696. Where the guarantor is unable due to illegality or other cause beyond its control to make payment in such a
case notwithstanding any provision in the guarantee to the contrary which one of the following provisions of revised
Uniform Rules for Demand Guara
a. The guarantor cannot pay in its local currency at the prevailing rate of exchange.
b. If payment is delayed, the beneficiary can require payment to be made in such increased sum so as to
reflect the amount which would have been received according to the exchange rate prevailing when payment
was originally due rather than the date of payme
c. Both A and B
d. Neither (A) nor (B)
____________________________________________________________________________________________
691. D 692. D 693. B
694. B 695. D 696. B
Question Bank : International Banking, Treasury &Wealth Management
697. As per Article 24 of revised Uniform Rules for Demand Guarantees URDG 758 within how many days a
rejection notice must be sent setting out all of the discrepancies if a guarantor rejects a non-complying demand.
Failure to do so results in the guarantor l
a. within four business days
b. within five business days
c. within seven business days
d. within three business days
____________________________________________________________________________________________
698. As per Article 23 of revised Uniform Rules for Demand Guarantees URDG 758 which one of the following is
not correct?
a. The guarantor now has the option to pay up immediately or to suspend payment for a period not exceeding
30 calendar days following receipt to allow negotiation.
b. It has no choice but to suspend payment while consulting with the applicant in relation to the extension.
c. The guarantor has a discretionary right to refuse to grant any extension even if instructed to do so by the
applicant and may simply proceed to pay.
d. None of the above
____________________________________________________________________________________________
699. Regarding Transfer of guarantee and assignment of proceeds as per revised Uniform Rules for Demand
Guarantees URDG 758, which one of the following is not true
a. Parial transfers of a transferrable guarantee are possible and the guarantor has the right to refuse to give
effect to a request to transfer a guarantee at all unless it has expressly consented to the transfer.
b. The agreement of gurantor is not required for the assignment of proceeds under Article 33(b).
c. Both a and b are not true
d. Both a and b are true
____________________________________________________________________________________________
700. In respect of URR 725 The Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits -
ICC Publication No. 725, which one of the following is not correct?
a. URR 725 was approved by the ICC national committees at the ICC Banking Commission in April 2008.
b. URR 725 has been effective since 01 October 2008.
c. URR 725 is an updated version of previous rules for bank-to-bank reimbursements known as URR 525 to
match the style of UCP 600
d. None of the above
____________________________________________________________________________________________
701. Under URR 725, who is responsible for indicating in the documentary credit that reimbursement is subject to
the Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits.
a. Issuing Bank
b. Reimbursing Bank
c. Claiming Bank
d. All the above
____________________________________________________________________________________________
702. Which one of the following is not true in respect of URR 725 The Uniform Rules for Bank-to-Bank
Reimbursements under Documentary Credits - ICC Publication No. 725
a. SWIFT stance is that a reimbursement authorization will automatically be subject to the version of URR in
effect on the date of issue.
b. As with the MT700, issuers of an MT740 are required to indicate the applicable rules.
c. The use of NOTURR means that the rules stated in UCP 600 article 13 will apply.
d. None of these
____________________________________________________________________________________________
697. B 698. B 699. C
700. D 701. A 702. A
Question Bank :
703. In respect of URR 725 The Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits -
ICC Publication No. 725, who will bear the reimbursing bank‟s charges?
a. It will be for the account of the Issuing Bank
b. It will be for the account of the beneficiary
c. Can be modified by the terms of the reimbursement authorization if such charges are to be for account of the
beneficiary.
d. Both A and C
____________________________________________________________________________________________
704. In respect of URR 725 The Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits -
ICC Publication No. 725, suppose a mail confirmation is sent for a reimbursement claim made by teletransmission
and in the event if any duplicate reimburse
a. Reimbursing Bank
b. Claiming Bank
c. Issuing Bank
d. None of these
____________________________________________________________________________________________
705. As per Article 15 of URR 725 The Uniform Rules for Bank-to-Bank Reimbursements under Documentary
Credits - ICC Publication No. 725, there is no liability or responsibility for the consequences arising out of the
interruption of its business by Acts of God
a. Reimbursing Bank
b. Claiming Bank
c. Issuing Bank
d. None of these
____________________________________________________________________________________________
707. Which one of the following is not true about SIP Systematic Investment Planning?
a. SIP is a disciplined way of investing a fixed amount at a regular frequency. A time tested investment
approach.
b. SIP Reduces the market risk by using the concept of rupee cost averaging.
c. SIP allows power of compounding helps create wealth over a long term.
d. In a falling market SIP results in a worse downside protection.
____________________________________________________________________________________________
a.
b.
c.
d.
____________________________________________________________________________________________
703. D 704. B 705. A
706. C 707. D
Question Bank : «Topic»
a.
b.