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Question Bank : International Banking, Treasury &Wealth Management

1. Derivatives can be used by an exporter for managing


a. currency risk.
b. Credit risk
c. Cargo risk
d. Market risk
____________________________________________________________________________________________

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.
____________________________________________________________________________________________

6. Under how many categories are 'Authorised Persons' classified under?


a. Two
b. Three
c. Four
d. Five
____________________________________________________________________________________________
1. A 2. C 3. C
4. C 5. D 6. C
Question Bank : International Banking, Treasury &Wealth Management

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

13. LRS Liberalised Remittance Scheme is not available for whom?


a. Resident Individuals
b. Minors
c. Either(a) or (b) above
d. Trusts
____________________________________________________________________________________________

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
____________________________________________________________________________________________

22. What is a permitted currency?


a. only USD
b. only GBP
c. USD, GBP, JYEN, DEM
d. Any currency which is freely traded, active, and convertible in the market
____________________________________________________________________________________________

23. Which of the following is not a type of Foreign Exchange Exposure?


a. Tax Exposure
b. Translation Exposure
c. Transaction Exposure
d. Balance Sheet Exposure
____________________________________________________________________________________________

24. Who is providing Export Refinance to banks in India?


a. ECGC
b. EXIM Bank
c. IMF
d. RBI
____________________________________________________________________________________________
19. A 20. D 21. D
22. D 23. A 24. D
Question Bank : International Banking, Treasury &Wealth Management

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.
____________________________________________________________________________________________

28. Identify the incorrect statement among the following:


a. No prior permission from RBI is required for issue of Store Value Card/Charge Cards / Smart Cards by
Authorised Dealer Banks to residents travelling on private / business visit abroad for making payments at
overseas merchant establishments
b. Use of Store Value Card/ Charge Cards / Smart Cards is limited to permissible current account transactions.
c. Use of Store Value Card / Charge Cards / Smart Cards is subject to the prescribed limits under the FEM
(CAT) Rules, 2000 as amended from time to time.
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
____________________________________________________________________________________________

32. What is EEFC Account?


a. Export Earners Foreign Currency Account
b. Export Exchange Foreign Currency Account
c. External Earnings Foreign Currency Account
d. Exchange Earners' Foreign Currency Accounts
____________________________________________________________________________________________

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
____________________________________________________________________________________________

34. Which one of the following is not true?


a. There is no restriction on withdrawal in rupees of funds held in EEFC account.
b. Amount withdrawn in rupees from EEFC Account is not eligible for conversion into foreign currency and for
re-credit to the account.
c. Recredit of unutilised foreign currency earlier withdrawn from the account is a permissible credit to EEFC
account.
d. EEFC accountholders will be permitted to access the forex market for purchasing foreign exchange only after
utilizing fully the available balances in the EEFC accounts.
____________________________________________________________________________________________

35. What is an RFC Account?


a. Retainer's Foreign Currency Account
b. Retail Foreign Currency Account
c. Reserve Foreign Currency Account
d. Resident Foreign Currency Account
____________________________________________________________________________________________

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.
____________________________________________________________________________________________

45. As which type of account FCNR(B) Account can be opened?


a. Savings Bank
b. Term Deposit
c. Either (a) or (b)
d. Neither (a) nor (b)
____________________________________________________________________________________________

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
____________________________________________________________________________________________

47. What is the website of FEDAI?


a. www.infedai.org
b. www.fedai.in
c. www.fedai.org.in
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
____________________________________________________________________________________________

54. Who controls Import Trade?


a. Ministry of Finance
b. Ministry of Home Affairs
c. Minister of External Affairs
d. Ministry ofCommerce
____________________________________________________________________________________________
49. B 50. C 51. A
52. B 53. A 54. D
Question Bank : International Banking, Treasury &Wealth Management

55. LC should not be opened in whose favour?


a. Overseas Supplier
b. Overseas Manufacturer
c. Shipper of goods
d. Applicant
____________________________________________________________________________________________

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)
____________________________________________________________________________________________

57. Which one of the following is not correct?


a. Importer/Exporter would need to declare only GSTIN (wherever registered with GSTN) at the time of import
and export of goods.
b. Henceforth PAN of an entity will be used for the purpose of IEC
c. IEC issued by DGFT will be alphanumeric.
d. All are Correct
____________________________________________________________________________________________

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

67. What is the website address of ECGC?


a. www.ecgc.org
b. www.ecgc.com
c. www.ecgc.in
d. www.oecd.org
____________________________________________________________________________________________

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
____________________________________________________________________________________________

71. What is the currency of Qatar?


a. Dollar
b. Dinar
c. Rial
d. Dinar
____________________________________________________________________________________________

72. What is the expansion of FATF


a. Fraud Action Task Force
b. Forum for Action against Terrorism Financing
c. Financial Action Tarriff Force
d. Financial Action Task Force
____________________________________________________________________________________________
67. C 68. C 69. C
70. A 71. C 72. D
Question Bank : International Banking, Treasury &Wealth Management

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
____________________________________________________________________________________________

74. Where is the Secretariat of FATF located?


a. New York
b. London
c. Geneva
d. Paris
____________________________________________________________________________________________

75. In what form EEFC account can be held?


a. Savings Bank
b. Current Account
c. Recurring Deposit
d. Variable Recurring Deposit
____________________________________________________________________________________________

76. How much of one's foreign exchange earnings can be credited to an EEFC Account?
a. 50%
b. 60%
c. 75%
d. 100%
____________________________________________________________________________________________

77. Which one of the following is a Capital Account Transaction?


a. Foreign Tour
b. Exports
c. Imports
d. Foreign Currency Deposits
____________________________________________________________________________________________

78. Expand FATCA


a. Foreign Action Terrorism Countervening Act
b. Financial Action Terrorism Countervening Act
c. Foreign Account Terrorism Countering Act
d. Foreign Account Tax Compliance Act
____________________________________________________________________________________________
73. B 74. D 75. B
76. D 77. D 78. D
Question Bank : International Banking, Treasury &Wealth Management

79. What does CRS stand for?


a. Compliance Reporting Standards
b. Common Revenue Standards
c. Common Reporting Standards
d. Counterfeit Reporting Standards
____________________________________________________________________________________________

80. What does OFAC stand for?


a. Office of Financial and Accounting Control
b. Office of Federal Audit Control
c. Office of Foreign Assets Control
d. Office of Federal Accounting Control
____________________________________________________________________________________________

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
____________________________________________________________________________________________

82. What does SWIFT stand for?


a. Society for Worldwide Interbank Financial Transfers
b. Society for Worldwide International Financial Transfers
c. Society for Worldwide International Financial Telecommunication
d. Society for Worldwide Interbank Financial Telecommunication
____________________________________________________________________________________________

83. Where is the Headquarters of SWIFT located at?


a. London
b. Brussels
c. Amsterdam
d. Paris
____________________________________________________________________________________________

84. The term MT103 in SWIFT denotes


a. Message Transfer
b. Money Transfer
c. Money Transaction
d. Message Type
____________________________________________________________________________________________
79. C 80. C 81. B
82. D 83. B 84. D
Question Bank : International Banking, Treasury &Wealth Management

85. Which is not a classification of goods for importing under Foreign Trade Policy?
a. Prohibited
b. Cancelled
c. Canalysed
d. Restricted
____________________________________________________________________________________________

86. In ITC(HS) what does ITC stand for?


a. International Trade Classification
b. Indian Trade Classification
c. Improved Trade Controls
d. International Tarriff Concessions
____________________________________________________________________________________________

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
____________________________________________________________________________________________

92. What is IDPMS?


a. International Data on Port Management System
b. International Division and Payment Monitoring System
c. Import Data Promotion and Maintenance System
d. Import Data Processing and Monitoring System
____________________________________________________________________________________________

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
____________________________________________________________________________________________

95. The date of settlement for a foreign exchange transaction is referred to as


a. Maturity Date
b. Value Date
c. Transaction Date
d. Swap Date
____________________________________________________________________________________________

96. Hedging is used by companies to


a. Increase the variability of tax paid
b. Decrease the spread between spot and forward market quotes
c. Increase the variability of expected cash flows
d. Decrease the variabilityof expected cash flows
____________________________________________________________________________________________
91. B 92. D 93. B
94. C 95. B 96. D
Question Bank : International Banking, Treasury &Wealth Management

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
____________________________________________________________________________________________

100. What is the location of ICC International Chamber of Commerce?


a. Tokyo
b. London
c. Paris
d. New York
____________________________________________________________________________________________

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

103. What does a Packing List denote?


a. Nature and number of packages with distinctive numbers or marks.
b. It carries weight of goods.
c. It indicates composition and quality of goods.
d. It is a document certifying having inspected the goods.
____________________________________________________________________________________________

104. Which is not a Health Certificate?


a. Phytosanitary Certificate
b. Certificate of Inspection
c. Radiation Certificate
d. Fumigation Certificate
____________________________________________________________________________________________

105. Which is not a function of Bill of lading?


a. It is an evidence of contract of freight.
b. It is a receipt for the goods.
c. It certifies the quality of the goods.
d. It is a document of title to goods.
____________________________________________________________________________________________

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
____________________________________________________________________________________________

107. Which is not another name for "Claused Bill of Lading"?


a. Foul
b. Lash
c. Dirty
d. Unclean
____________________________________________________________________________________________

108. Which is not true in respect of Postal Receipt?


a. It can be a Sea Mail Receipt or Airmail Receipt
b. It is an acknowledgement of receipt of goods for delivery to a named consignee
c. It is a document of title to goods
d. It is not a negotiable instrument.
____________________________________________________________________________________________
103. A 104. B 105. C
106. C 107. B 108. C
Question Bank : International Banking, Treasury &Wealth Management

109. Which is not a document of title to goods?


a. Postal Receipt
b. Airway Bill
c. Bill of lading
d. All are documents of title togoods.
____________________________________________________________________________________________

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
____________________________________________________________________________________________

113. Which Message in Swift deals with Advice of Cheques.


a. MT103
b. MT110
c. MT111
d. MT112
____________________________________________________________________________________________

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

115. Which Message in Swift deals with queries?


a. MT110
b. MT103
c. MT195
d. MT196
____________________________________________________________________________________________

116. Which Message in Swift deals with Answers?


a. MT110
b. MT103
c. MT195
d. MT196
____________________________________________________________________________________________

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
____________________________________________________________________________________________

118. __________ is not a type of settlement period.


a. TOM
b. SPOT
c. FORWARD
d. None of these
____________________________________________________________________________________________

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
____________________________________________________________________________________________

120. Cash Arbitrage explains the determination of


a. Forward Rates for currencies
b. Spot Rates for Currencies
c. Penalty for non-execution of forward contracts
d. Both forward and Spot Rates for Currencies
____________________________________________________________________________________________
115. C 116. D 117. A
118. D 119. B 120. A
Question Bank : International Banking, Treasury &Wealth Management

121. The profit in foreign exchange is due to


a. high volume of money
b. profit ratio of the exchange
c. depends on the currencies
d. none of these
____________________________________________________________________________________________

122. Bond issued simultaneously in several global financial center is


a. Domestic Bond
b. Foreign Bond
c. Global Bond
d. Euro Bond
____________________________________________________________________________________________

123. Bank for International Settlements Start Working in


a. 1930
b. 1933
c. 1932
d. 1937
____________________________________________________________________________________________

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
____________________________________________________________________________________________

126. The Current Account of Balance of Payments includes


a. Unilateral Payments
b. Portfolio Investments
c. Short Term Borrowings
d. Long Term Borrowings
____________________________________________________________________________________________
121. A 122. C 123. A
124. D 125. A 126. B
Question Bank : International Banking, Treasury &Wealth Management

127. Who cannot issue Rupee Denominated Bonds overseas?


a. Any corporate (entity registered as a company under the Companies Act, 1956/2013)
b. Body Corporate (entity spcially created out of a specific Act of the Parliament)
c. Resident Entity like Partnership Firms
d. Indian Banks
____________________________________________________________________________________________

128. Expand IOSCO.


a. Indian Overseas Serving Citizens Organisations
b. International Organisation of Securities Commission
c. Indian Organisation for Scientific and Cultural Operations
d. International Organisation for Science and Commerce
____________________________________________________________________________________________

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
____________________________________________________________________________________________

132. Ask Quote is for


a. Seller
b. Buyer
c. Speculator
d. Hedger
____________________________________________________________________________________________
127. C 128. B 129. C
130. D 131. B 132. A
Question Bank : International Banking, Treasury &Wealth Management

133. ______________ is not considered a unilateral transfer.


a. income earned from foreign investments
b. personal gifts to friends in foreign countries.
c. donations to foreign countries from non-government
d. foreign aid from one government to another.
____________________________________________________________________________________________

134. The strike price for an option is


a. lower of the market price and the agreed price
b. the price at which the option is auctioned.
c. The exchange rate at which the currencies are agreed to be exchanged under the contract.
d. none of these.
____________________________________________________________________________________________

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
____________________________________________________________________________________________

141. Long Term Securities are sold and bought in


a. Money Market
b. Primary Market
c. Secondary Market
d. Capital Market
____________________________________________________________________________________________

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
____________________________________________________________________________________________

143. _________ is an arrangement that is terminated before it matures.


a. Replacement Swap
b. Credit Default Swap
c. Non-deliverable Swap
d. Catastrophe Swap
____________________________________________________________________________________________

144. The risk that arises when operating in a foreign place


a. Credit Risk
b. Settlement Risk
c. Jurisdicition Risk
d. Aggregate Risk
____________________________________________________________________________________________
139. C 140. B 141. D
142. A 143. A 144. C
Question Bank : International Banking, Treasury &Wealth Management

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

151. Translation exposure arises in respect of items translated at


a. Average Rate
b. Historical Rate
c. Current Rate
d. All of these
____________________________________________________________________________________________
152. __________ is a theory in which the interest rate differential between two countries is equal to the differential
between the forward exchange rate and the spot exchange rate.
a. Traditional Model
b. International Fisher Effect
c. Interest Rate Parity
d. Purchasing Power Parity.
____________________________________________________________________________________________
153. Purchasing Power Parity implies that a standardized good should sell for the same price internationally after
adjusting for exchange rates.
a. TRUE
b. FALSE
c. XXXX
d. XXXXX
____________________________________________________________________________________________
154. ___________ occurs when shareholders' ownership of the target company's shares are exchanged for shares
of the acquiring company as part of a merger or acquisition.
a. Inflation Swap
b. Cross-Currency Swap
c. Stock Swap
d. Circus Swap
___________________________________________________________________________________________
155. Forward Premium depends on
a. currency fluctuation
b. interest rate differential between 2 countries
c. demand and supply of 2 currencies
d. stock market returns
____________________________________________________________________________________________
156.
____________________________________________________________________________________________
151. C 152. C 153. A
154. C 155. B 156.
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
____________________________________________________________________________________________

158. The major players in the foreign exchange market are


a. Central bank of the country and the Central Government
b. Corporate
c. Exchange brokers
d. Commercial Banks
____________________________________________________________________________________________

159. __________ is also called aftermarket


a. Money Market
b. Secondary Market
c. Capital Market
d. Primary Market
____________________________________________________________________________________________

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
____________________________________________________________________________________________

161. The Bond Markets are


a. the markets where foreign exchange rates are determined
b. the markets where interest rates are determined
c. easily the most widely followed financial markets in the United States
d. the markets without risk.
____________________________________________________________________________________________

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

163. Translation loss is


a. A notional loss
b. Loss to the parent company
c. Loss to the subsidiary company
d. An actual loss.
____________________________________________________________________________________________

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
____________________________________________________________________________________________

168. Indirect Quote Means


a. The rate quoted with units of foreign currency kept fixed
b. The rate quoted with the units of home currency kept fixed
c. The rate quoted in terms of a third currency
d. None of these
____________________________________________________________________________________________
163. A 164. D 165. D
166. D 167. D 168. B
Question Bank : International Banking, Treasury &Wealth Management

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
____________________________________________________________________________________________

170. This type of risk can lead to principal risk.


a. Settlement Risk
b. Jurisdiction Risk
c. Aggregate Risk
d. Credit Risk
____________________________________________________________________________________________

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
____________________________________________________________________________________________

172. The _______ theory focuses on the inflation-exchange rate relationship.


a. Traditional Model
b. International Fisher Effect
c. Purchasing Power parity
d. Interest Rate parity
____________________________________________________________________________________________

173. Long Term Securities of two currencies is called as


a. Foreign Bonds
b. Euro Bond
c. Euro Dollar Deposit
d. Dual Currency Bonds
____________________________________________________________________________________________

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
____________________________________________________________________________________________

179. Exposed Assets are those translated at


a. Historical Rate
b. Current Rate
c. Average Rate
d. All of these
____________________________________________________________________________________________

180. Which is a type of foreign exchange account?


a. NOSTRO
b. VOSTRO
c. LORO
d. All of these
____________________________________________________________________________________________
175. D 176. B 177. A
178. B 179. B 180. D
Question Bank : International Banking, Treasury &Wealth Management

181. Most currency transactions are channeled through the worldwide


a. Interbank market
b. forward market
c. spot market
d. none of these
____________________________________________________________________________________________

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
____________________________________________________________________________________________

183. _______ is a participant of the foreign exchange market.


a. Speculators
b. Central Bank
c. Hedgers
d. All of these
____________________________________________________________________________________________

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
____________________________________________________________________________________________

188. Most Traded Forex Pairs are


a. USD/EUR
b. GBP/USD
c. JPY/EUR
d. USD/JPY
____________________________________________________________________________________________

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
____________________________________________________________________________________________

192. Which of these is not a component of negative list of items


a. Restricted Items
b. Prohibited Items
c. Canalised Items
d. Dangerous Items
____________________________________________________________________________________________
187. B 188. A 189. C
190. C 191. A 192. D
Question Bank : International Banking, Treasury &Wealth Management

193. What is a packing list also called?


a. Bill of Exchange
b. Bill of Parcel
c. Bill of Export
d. Itemized List of articles
____________________________________________________________________________________________

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
____________________________________________________________________________________________

195. AWB is also known as?


a. Airwaybill
b. Article without border
c. Article of Billing
d. None of these
____________________________________________________________________________________________

196. Who is the Director of WTO?


a. Ben Banarke
b. Roberto Azevedo
c. Janet Yellon
d. Christina Lagarde
____________________________________________________________________________________________

197. Which is the most traded commodity in the world?


a. Coffee
b. Gold
c. Crude Oil
d. Wheat
____________________________________________________________________________________________

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

199. What is the full form of CNF?


a. Carriage and freight
b. Carriage not found
c. Cost and freight
d. Cost not found
____________________________________________________________________________________________

200. What is the full form of FCA?


a. Free Carrier
b. Free Cost Accommodation
c. Free Care
d. None of these
____________________________________________________________________________________________

201. Indian Currency is a


a. fixed exchange currency
b. free floating currency
c. managed floating currency
d. none of these
____________________________________________________________________________________________

202. An irrevocable letter of credit


a. obligates the exporter's bank to pay interest to the importer
b. can be amended by any of the parties involved at any point.
c. is issued by an irrevocable credit agency
d. can only be amended if all parties involved agree
____________________________________________________________________________________________

203. Eurodollars are


a. Bonds
b. Equity
c. Currency
d. Deposits
____________________________________________________________________________________________

204. What is the full form of DAT?


a. Delivered at Terminal
b. Document added tax
c. Delivered at time
d. none of these
____________________________________________________________________________________________
199. C 200. A 201. C
202. D 203. D 204. A
Question Bank : International Banking, Treasury &Wealth Management

205. _______ has the least effect on a country's current account.


a. National Income
b. Exchange Rate
c. Tax on Income from Foreign Stocks
d. Inflation
____________________________________________________________________________________________

206. What is the highest level of Economic Integration?


a. Political Union
b. Common Market
c. Economic Union
d. Custom Union
____________________________________________________________________________________________

207. When is proforma invoice issued?


a. When the bank approves it.
b. Whenever you can pay for it.
c. Before the LC is sent.
d. all of these
____________________________________________________________________________________________

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
____________________________________________________________________________________________

209. A revocable letter of credit


a. obligates the importer's bank to honour a draft presented to it.
b. can be amended by any of the parties involved at any point.
c. obligates the exporter's bank to honour a draft presented to it.
d. can only be amended if all the parties involved agree
____________________________________________________________________________________________

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
____________________________________________________________________________________________

212. What is the latest UCP?


a. 300
b. 400
c. 600
d. 500
____________________________________________________________________________________________

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
____________________________________________________________________________________________

215. CCIE stands for


a. Chief Controller of Imports and Exports
b. Central Cottage Industries Exports
c. Commissioner of Central Imports and Exports
d. Control on Cotton Imports and Exports
____________________________________________________________________________________________

216. In India, exports and imports come under the purview of


a. Ministry of External Affairs
b. Ministry of Home Affairs
c. Ministry of Commerce
d. Ministry of Finance
____________________________________________________________________________________________
211. A 212. C 213. A
214. A 215. A 216. C
Question Bank : International Banking, Treasury &Wealth Management

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
____________________________________________________________________________________________

219. Which is the largest country by Total International Trade in 2015?


a. Japan
b. EU
c. USA
d. China
____________________________________________________________________________________________

220. Foreign Exchange is a ____ market


a. national decentralised
b. globalised centralised
c. national centralised
d. global decentralised
____________________________________________________________________________________________

221. What is a bill of lading?


a. Documents mentioning all items mentioned have been shipped
b. documents mentioning objects of shipment
c. documents mentioning date of shipping
d. none of these
____________________________________________________________________________________________

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

223. This is a type of foreign exchange account


a. LORO
b. NOSTRO
c. VOSTRO
d. all of these
____________________________________________________________________________________________

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
____________________________________________________________________________________________

228. What is full form of FTZ?


a. Free Transaction Zone
b. Free Trade Zone
c. Freight trade zone
d. free tax zone
____________________________________________________________________________________________
223. D 224. C 225. D
226. D 227. B 228. B
Question Bank : International Banking, Treasury &Wealth Management

229. What are export promotion councils?


a. helps to promote competitiveness
b. helps promote imports
c. helps promote and develop export
d. helps promote democracy
____________________________________________________________________________________________

230. Which of them is the purpose of doing business in international markets?


a. to develop and sell the products for a particular geographical location
b. to take advantage of the tax benefits of the foreign country
c. existence of imperfect markets
d. all of these
____________________________________________________________________________________________

231. A letter of credit


a. cannot be amended
b. obligates the importer's bank to honor a draft presented to it.
c. ismore secure than cash in advance
d. is issued by a credit agency to a bank
____________________________________________________________________________________________

232. Which of these accurately describes CIF


a. FOB+Shipping+Freight+Insurance
b. A+transport to importers surroundings
c. B+Customs Charges
d. C+unloading
____________________________________________________________________________________________

233. What is the full form of APEC?


a. asia pacific economic convention
b. asia pacific economic cooperation
c. asia pan economic cooperation
d. asia pan economic convention
____________________________________________________________________________________________

234. "I" in FDI stands for


a. Investment
b. Interest
c. Initiative
d. International
____________________________________________________________________________________________
229. C 230. D 231. B
232. A 233. B 234. A
Question Bank : International Banking, Treasury &Wealth Management

235. A returning traveller is permitted to retain with him, foreign currency


travellers cheques and currency notes up to an aggregate amount of USD ………….. which can be utilized by the
traveller for his subsequent visit abroad
a. 2000
b. 1000
c. 3000
d. 2500
____________________________________________________________________________________________

236. A student going abroad from India for higher studies is a


a. Indian Resident
b. NRE
c. Foreign Citizen
d. None of these
____________________________________________________________________________________________

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
____________________________________________________________________________________________

238. An Account of a Bank in another country in Foreign Currency is known as …..


a. NOSTRO
b. LORO
c. VOSTRO
d. None of these
____________________________________________________________________________________________

239. An account of a foreign bank in our currency in India is known ………


a. VOSTRO
b. NOSTRO
c. LORO
d. None of these
____________________________________________________________________________________________

240. An Indian citizen, who is having deposit accounts,


gets a job abroad and becomes an NRI, what is to
be done with his existing accounts?
a. Open NRE and Close
Resident Account
b. Open NRE and convert
Resident Ac to NRO
c. Either a or b
d. None of these
____________________________________________________________________________________________
235. A 236. B 237. A
238. A 239. A 240. C
Question Bank : International Banking, Treasury &Wealth Management

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
____________________________________________________________________________________________

244. AP in Forex context is ………………Person


a. Associated
b. Authorised
c. Ancillary
d. None of these
____________________________________________________________________________________________

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
____________________________________________________________________________________________

246. Banks may open a …………. bank account of a foreign student


a. NRE
b. NRO
c. RESIDENT
d. FCNR
____________________________________________________________________________________________
241. B 242. A 243. A
244. B 245. B 246. B
Question Bank : International Banking, Treasury &Wealth Management

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
____________________________________________________________________________________________

248. Can Resident Indian remit by LRS


a. No
b. Yes
c. On getting RBI approval
d. None of these
____________________________________________________________________________________________

249. CDF or Currency Declaration Form is to be submitted to …….authorities


a. IT
b. Customs
c. RBI
d. None of these
____________________________________________________________________________________________

250. FC(R)A 2010 is to be followed for remittance to


a. Individuals
b. Associations/Agencies
c. Govt Departments
d. None of these
____________________________________________________________________________________________

251. FCNR can be opened in …..


a. INR
b. Any Foreign Currency
c. Permitted foreign currency
d. Both INR and foreign currency
____________________________________________________________________________________________

252. FCNR(B) can be opened by


a. NRI
b. PIO
c. Residents
d. Both A and B
____________________________________________________________________________________________
247. B 248. B 249. B
250. B 251. C 252. D
Question Bank : International Banking, Treasury &Wealth Management

253. FCNR(B) can be opened as


a. Savings Account
b. Current Account
c. Time deposit
d. None of these
____________________________________________________________________________________________

254. FCRA is Foreign………… Regulation Act


a. Currency
b. Contribution
c. Concurrent
d. Customs
____________________________________________________________________________________________

255. For inward remiittance for business purpose ………….certificate is needed


a. FCRA
b. FIRC
c. CDF
d. None of these
____________________________________________________________________________________________

256. For NRE time (term) deposits minimum and maximum


period are …….years
a. 1 and 5
b. 3 and 5
c. 1 and 10
d. None of these
____________________________________________________________________________________________

257. For travel to Bhutan and Nepal can banks release Foregn Exchange
a. Yes
b. No
c. On RBI permission
d. On FEMA permission
____________________________________________________________________________________________

258. Foreign tourists visiting India can also open this


account provided their stay in India does not exceeding…………….months
a. 3
b. 6
c. 9
d. 12
____________________________________________________________________________________________
253. C 254. B 255. B
256. C 257. B 258. B
Question Bank : International Banking, Treasury &Wealth Management

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
____________________________________________________________________________________________

261. In NRE deposits interest income is …………


a. Non-Taxable
b. Taxable
c. Taxable if repatriated
d. None of these
____________________________________________________________________________________________

262. In NRO accounts local deposits should not exceed


a. No restriction
b. Rs 100000
c. Rs 500000
d. Rs 1000000
____________________________________________________________________________________________

263. In Xpressmoney payments upto Rs …………..can be paid by cash to residents


a. 100000
b. 49900
c. 50000
d. 500000
____________________________________________________________________________________________

264. Interest income from FCNRB accounts is ………..


a. Non-Taxable
b. Taxable
c. Partially Taxable
d. None of these
____________________________________________________________________________________________
259. B 260. B 261. A
262. A 263. C 264. A
Question Bank : International Banking, Treasury &Wealth Management

265. Interest income from NRO accounts is ………..


a. Non Taxable
b. Taxable
c. If the interest exceeds Rs 30000
d. None of these
____________________________________________________________________________________________

266. LRS stands for ……………….Remittance Scheme


a. Licensed
b. LIBOR
c. Liberalised
d. Localised
____________________________________________________________________________________________

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
____________________________________________________________________________________________

268. Moneygram is identified with ……digit code


a. 6
b. 10
c. 8
d. 7
____________________________________________________________________________________________

269. NRI open a joint account with resident close


relative as…………….account only
a. E or S
b. Joint
c. F or S
d. None of these
____________________________________________________________________________________________

270. NRI is a person who goes abroad for


a. doing business
b. employment or Vocation
c. higher studies
d. All of these
____________________________________________________________________________________________
265. B 266. C 267. C
268. C 269. C 270. D
Question Bank : International Banking, Treasury &Wealth Management

271. Obtention of A2 form is exempted upto USD ….


a. 100000
b. 50000
c. 25000
d. 500000
____________________________________________________________________________________________

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
____________________________________________________________________________________________

273. PIO, Person of Indian Origin, is a citizen of any


country otherthan Pakistan and Bangladesh
a. Who held an Indian passport
b. Who or whose either parents or either grandparents were Indian Citizens
c. Who is a spouse of an Indian
citizen or of (a) or (b)
d. All of these
____________________________________________________________________________________________

274. RBI has permitted that a sum up to USD 1 million per


……………….. can be repatriated out of the NRO Accounts subject
to certain conditions which include credit to NRE account
a. Calendar Year
b. Financial Year
c. Both
d. None of these
____________________________________________________________________________________________

275. Regarding FCNR B which is correct


a. Can have a joint ac For S withclose relative
b. Cannot have any joint Account
c. Can have joint Account withJoint operation only
d. Can have a joint ac Eor S withclose relative
____________________________________________________________________________________________

276. Regarding LOD in FCNRB which is/are correct


a. Loan can be granted in Indian rupee
b. Loans in INR can be sanctioned the depositor/third party
c. Loans in foreign Currency can be sanctioned to depositor only
d. All of these
____________________________________________________________________________________________
271. C 272. C 273. D
274. B 275. A 276. D
Question Bank : International Banking, Treasury &Wealth Management

277. Regarding Nomination in NRO which is correct


a. Nomination not available
b. Available
c. NRI can also be a nominee
d. both B and C
____________________________________________________________________________________________

278. Regarding NRE account which of the following is correct


a. Can be opened only in INR
b. Remittance should be from
abroad or from any other NRI ac
c. Both A and B
d. None of these
____________________________________________________________________________________________

279. Regarding NRE deposits which of the following are true


a. Principal is fully repatriable
b. Interest is fully repatriable
c. Principal and interest are
fully repatriable
d. None of these
____________________________________________________________________________________________

280. RFC (Resident Foregn Currency Account ) can be opened as


a. SB
b. CA
c. Term Deposit
d. All of these
____________________________________________________________________________________________

281. RFC (Resident Foregn Currency Account )be maintained in


a. Any permitted currency
b. INR only
c. Foreign Currency Only
d. None of these
____________________________________________________________________________________________

282. RFC (Resident Foregn Currency Account )can be opened by


a. NRI
b. Returning (NRI) Indians
c. All resident Indians
d. None of these
____________________________________________________________________________________________
277. D 278. C 279. C
280. D 281. A 282. B
Question Bank : International Banking, Treasury &Wealth Management

283. SFMS stands for Structured Financial …………….System


a. Multitasking
b. Management
c. Messaging
d. Maintenance
____________________________________________________________________________________________

284. Shadow Account used for reconciliation purpose is known as …….


a. Replica
b. Dummy
c. Mirror Account
d. None of these
____________________________________________________________________________________________

285. SpeedRemit is for remiitance from………………to India


a. GULF
b. USA
c. Singapore
d. Common Wealth Countries
____________________________________________________________________________________________

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

289. Under LRS authorised dealers(AD s) may allow remiitances


by individual accounts upto USD …..
a. 500000
b. 100000
c. 250000
d. 300000
____________________________________________________________________________________________

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
____________________________________________________________________________________________

291. Website of RBI is www.rbi.___.in


a. gov
b. co
c. org
d. ind
____________________________________________________________________________________________

292. Westren Union is identified with ……digit code


a. 12
b. 15
c. 10
d. 8
____________________________________________________________________________________________

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

295. Xpressmoney is identified with ……digit code


a. 16
b. 12
c. 18
d. 15
____________________________________________________________________________________________

296. In RFC (Resident Foregn Currency Account )


a. Nominee should be resident
b. Nominee shoould be a NRI
c. Both A and B
d. Nomination not permitted
____________________________________________________________________________________________

297. DTAA is ………….. Tax Avoidance Agreement


a. Domestic
b. Double
c. Demanded
d. Direct
____________________________________________________________________________________________

298. A person making a remittance (a payment) to a Non Resident


or a Foreign Company has to submit Form
a. 15CA
b. CDF
c. FCRA
d. LRS
____________________________________________________________________________________________

299. Banks are under ………………category of Authorised Dealers


a. Category1
b. Category2
c. Category3
d. Category4
____________________________________________________________________________________________

300. There are ……….categories of authorised dealers


a. 1
b. 2
c. 3
d. 4
____________________________________________________________________________________________
295. A 296. C 297. B
298. A 299. A 300. C
Question Bank : International Banking, Treasury &Wealth Management

301. There are ……….categories of authorised persons in foreign exchange


a. 1
b. 2
c. 3
d. 4
____________________________________________________________________________________________

302. Full fledged money changers are


a. Authorised Dealers
b. Authorised Persons
c. Both A and B
d. None of these
____________________________________________________________________________________________

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
____________________________________________________________________________________________

304. When a bank buys one USD from a customer,


it has to pay a price in INR for this USD. This is known as
a. Conversion Factor
b. Rupee Equivalent
c. Exchange Rate
d. Market Rate
____________________________________________________________________________________________

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

307. If the currency of a country can be exchanged with currencies


of other countries without any regulatory restrictions or
with minimum restrictions the currency is
a. Fully Convertible
b. Fully Repatriable
c. Fully Exchangeable
d. None of these
____________________________________________________________________________________________

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
____________________________________________________________________________________________

310. Banks in India can issue foreign exchange to ………..only


a. NRIs
b. PIOs
c. Resident Indians
d. OCI
____________________________________________________________________________________________

311. Foreign Trade in India is regulated by Ministry of Commerce through


Director General of Foreign Trade under …………………Policy
a. Foreign Trade
b. Import
c. Exposrt
d. None of these
____________________________________________________________________________________________

312. The current Foreign Trade Policy is valid from 2015 to


a. 2017
b. 2018
c. 2019
d. 2020
____________________________________________________________________________________________
307. A 308. A 309. D
310. C 311. A 312. D
Question Bank : International Banking, Treasury &Wealth Management

313. Flow of foreign currency into India now is regulated by Ministry of


Finance through Reserve Bank of India under an Act called
a. FERA
b. FEMA
c. Both
d. None of these
____________________________________________________________________________________________

314. FEMA is Foreign Exchange ……….. Act


a. Management
b. Monitoring
c. Money Control
d. None of these
____________________________________________________________________________________________

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
____________________________________________________________________________________________

316. Which of the following statements is true


a. FEMA repalced FERA
b. FERA replaced FEMA
c. FEMA and FERA are in force now
d. FEMA are FERA are discontinued
____________________________________________________________________________________________

317. RBI conveys various guidelines regarding


the flow of foreign currency both inward and
outward under both capital and current account to the Authorised
persons(AP) through AP (DIR). DIR stands for
a. Directory
b. Directions
c. Ddocument Interface Record
d. Deposit Item Returned
____________________________________________________________________________________________

318. All …………………... are members of FEDAI


a. Banks
b. Authorised Dealers
c. Authorised Persons
d. None of these
____________________________________________________________________________________________
313. B 314. A 315. A
316. A 317. B 318. B
Question Bank : International Banking, Treasury &Wealth Management

319. FEDAI stands for Foreign Exchange ………….. Association of India


a. Directors
b. Dealers
c. Distributors
d. Developers
____________________________________________________________________________________________

320. UCPDC (Uniform Customs and Practices for Documentary Credits ) or


UCP governs the transactions under
a. Foreign Trade
b. Foreign Exchange
c. Letters of Credit
d. Convertible Currency
____________________________________________________________________________________________

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
____________________________________________________________________________________________

322. ECGC is Export Credit and …………………. of India


a. Guarantee Corporation
b. Governing Committee
c. Guarantee Council
d. Governing Court
____________________________________________________________________________________________

323. ECGC is promoted by …………………….in our country


a. Ministry of Commerce
b. RBI
c. FEMA
d. Ministry of Customs and
Central Excise
____________________________________________________________________________________________

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
____________________________________________________________________________________________

326. Institutions of educational, religious and charitable and service nature,


wanting to receive foreign contributions, should register themselves
with ……………….
a. RBI
b. GOI Ministry of Home Affairs
c. Ministry of Commerce
d. IDRBT
____________________________________________________________________________________________

327. ……….. is issued when we encash foreign currency or


foreign currency travelers cheques.
a. Encashment Certificate
b. Inward Remittance Certificate
c. FIRC
d. None of these
____________________________________________________________________________________________

328. Inward remittance certificate is issued when


we ………………….
a. receive a remittance from abroad for credit
of a customer‟s account.
b. encash foreign currency or
foreign currency travelers cheques.
c. Both A and B
d. None of these
____________________________________________________________________________________________

329. CDF is ……………..Declaration Form


a. Customs
b. Currency
c. Compulsory
d. None of these
____________________________________________________________________________________________

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
____________________________________________________________________________________________

332. Treasury Branch and International Division of our bank is at


a. Chennai
b. Mumbai
c. Kolkatta
d. Hyderabad
____________________________________________________________________________________________

333. Interest Equalisation (Subvention) Scheme on Pre and Post Shipment


Rupee Export Credit valid from 01-04-2015 to 30-11-2020 is at........%
a. 1
b. 2
c. 3
d. 4
____________________________________________________________________________________________

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
____________________________________________________________________________________________

339. NRI s can open


a. SB and Term Deposits only
b. Current Account only
c. SB and Current Account only
d. SB , Current Account and Term
Deposit
____________________________________________________________________________________________
340. INCO terms in Forex context means
a. International Communication
Terms
b. International Commercial
Terms
c. International Convention
Terms
d. Indian Commercial
Terms
____________________________________________________________________________________________
341. INCO Terms contain …… letters
a. 2
b. 3
c. 4
d. 5
____________________________________________________________________________________________
342. What is the time limit for resident individuals for surrender of received/realized/unspent/unused foreign
exchange to an authorized dealer?
a. 90 days
b. 180 days
c. 1 Year
d. 3 Years
____________________________________________________________________________________________
337. C 338. C 339. D
340. B 341. B 342. B
Question Bank : International Banking, Treasury &Wealth Management

343. A returning traveller can hold ……………currencies /travellers cheques and


foreign coins …………..
a. USD 3000 or equivalent , USD 1000
b. USD 1000 or equivalent , USD 500
c. USD 2000 or equivalent , No limit
d. Cannot hold foreign Currency
____________________________________________________________________________________________

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
____________________________________________________________________________________________

345. Liberalised Remittance Scheme (LRS) is applicable for


a. NRI s
b. NROs
c. Resident Indians
d. None of these
____________________________________________________________________________________________

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
____________________________________________________________________________________________

347. As per Liberalised Remittance Scheme which of the following is true?


a. Remiittance can be made
to all countries
b. Remiittance cannot be made to non co-operative countries identified by Financial Action Task Force (FATF)
c. Remiittance cannot be made to countries notified by RBI from time to time
d. Both B and C
____________________________________________________________________________________________

348. What is Financial Action Task Force? It is constituted by …………….countries


a. G7
b. Commonwealth
c. Asian
d. None of these
____________________________________________________________________________________________
343. C 344. A 345. C
346. C 347. D 348. A
Question Bank : International Banking, Treasury &Wealth Management

349. SWIFT stands for Society for Worldwide Interbank ………………………….


a. Financial Transactions
b. Financial Telecommunication
c. Foreign Trade
d. None of these
____________________________________________________________________________________________

350. MT 103 is a SWIFT message. MT in SWIFT means


a. Money Transaction
b. Message Type
c. Monitoring Transaction
d. Master Table
____________________________________________________________________________________________

351. IDRBT is the technical arm of


a. IBA
b. Ministry of Commerce
c. RBI
d. FEDAI
____________________________________________________________________________________________

352. SFMS or Structured Financial Messaging Solution is developed by


a. IBA
b. IDRBT
c. Ministry of Finance
d. FEDAI
____________________________________________________________________________________________

353. Which of the following activity/activities is prhibited under


FEMA for outward remittance
a. Participation in lottery schemes
b. Money circulation scheme
c. Securing prize money/awards
d. All of the above
____________________________________________________________________________________________

354. Letter of credit is a/an …………... issued by a bank


a. Undertaking
b. Guarantee
c. Agreement
d. Opinion
____________________________________________________________________________________________
349. B 350. B 351. C
352. B 353. D 354. A
Question Bank : International Banking, Treasury &Wealth Management

355. Which of the following is not a component of Letter of Credit ?


a. Buyer
b. Seller
c. Bank
d. Consumer
____________________________________________________________________________________________

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
____________________________________________________________________________________________

357. Indian importer imports goods from one country


and sells the same in another country by exporting it. This is termed as
a. Off Country Trade
b. Merchanting Trade
c. High Sea Sale
d. None of these
____________________________________________________________________________________________

358. Conversion of liability of the exporter in foreign currency in to INR liability


is known as ……..,……….
a. Crystallisation
b. Conversion
c. Money Change
d. None of these
____________________________________________________________________________________________

359. Forex market is called as …….. hour market


a. 12
b. 24
c. 36
d. 48
____________________________________________________________________________________________

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
____________________________________________________________________________________________

363. Hedging is a process of


a. Import
b. Export
c. Managing any risk
d. None of these
____________________________________________________________________________________________

364. Foreign Investment is prohibited in


a. Lottery Business
b. Gambling and betting
c. Trading in Transferable Development Rights (TDRs)
d. All the above
____________________________________________________________________________________________

365. In foreign investment allowed under the automatic route


a. Prior approval of GOI is needed
b. Prior approval of RBI is needed.
c. Prior approval of GOI and RBI is needed
d. None of these
____________________________________________________________________________________________

366. Forward contracts can be issued to customers under


a. Contracted Exposure
b. Probable Exposure
c. Special Dispensation
d. All of the above
____________________________________________________________________________________________
361. A 362. c 363. c
364. d 365. d 366. d
Question Bank : International Banking, Treasury &Wealth Management

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
____________________________________________________________________________________________

369. Mercury FX is a software which connects


a. Banks
b. Our Branches with Treasury
c. Our Bank with RBI
d. None of these
____________________________________________________________________________________________

370. Forward rate is the rate quoted for


a. Purchase of Foreign Currency on a future date
b. Sale of Foreign Currency on a future date
c. Both a and b
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
____________________________________________________________________________________________

372. Proof of exports


a. EDF (Export Declaration Form)
b. Shipping Bill
c. Both a and b
d. None of these
____________________________________________________________________________________________
367. c 368. a 369. b
370. c 371. a 372. c
Question Bank : International Banking, Treasury &Wealth Management

373. EDI in forex context means


a. Enforcement Directorate of India
b. Electronic Data Interchange
c. Export Data Inward
d. None of these
____________________________________________________________________________________________

374. ECB External Commercial Borrowings can be raised as


a. Buyers' and Suppliers' Credit
b. Financial Lease
c. Loans and Capital Market Instruments
d. All of the above
____________________________________________________________________________________________

375. Which one of the following is NOT RELATED to EXORT


a. EDF
b. Bill of Entry
c. SOFTEX
d. SDF
____________________________________________________________________________________________

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

379. The following item is not classified as an export of invisibles.


a. Software Export
b. Insurance Service
c. Banking Service
d. Textile Export
____________________________________________________________________________________________

380. XOS statement is to be submitted to RBI at ___ intervals.


a. Half Yearly
b. Quarterly
c. Monthly
d. Yearly
____________________________________________________________________________________________

381. In case of export of goods in physical form, date of export means:


a. Date of Invoice
b. Date of bill of exchange
c. Date of submission of export documents
d. Date of shipment
____________________________________________________________________________________________

382. Export credit is classified as a priority sector advance for


a. All public sector banks
b. Foreign Bank
c. Only domestic banks
d. Scheducle Commercial Banks/Private Sector Banks/Foreign Banks
____________________________________________________________________________________________

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

385. Packing Credit account can be liquidated out of the following:


a. Proceeds of bills drawn for the exported commodities on its purchase / discount etc
b. Out of balance in EEFC a/c
c. From rupee resources of the exporter to the extent exports have actually taken place
d. All the three
____________________________________________________________________________________________

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
____________________________________________________________________________________________

390. Export of one of the following is required to be declared in SOFTEX form


a. Merchandise
b. Software in physical form
c. Software both in physical and non physical form
d. Only software in non-physical form
____________________________________________________________________________________________
385. D 386. C 387. D
388. C 389. A 390. D
Question Bank : International Banking, Treasury &Wealth Management

391. Identify incorrect statement


a. Reduction in Invoice can be allowed up to 25%
b. Agency commission percentage is not prescribed by FEMA
c. In case of direct dispatch of export documents to overseas buyer, exporter need not submit prescribed
control forms like EDF/EDI to AD within 21 days from shipment date.
d. Refund of export proceeds could be allowed by banks subject to certain conditions
____________________________________________________________________________________________
392. Proceeds of goods and services exported by a status holder exporter are required to be brought to India within
------- from the date of shipment
a. 3 months
b. 6 months
c. 9 months
d. 12 months
____________________________________________________________________________________________
393. When an export bill becomes overdue the foreign currency liability of exporter is reversed. This process is
called
a. Liquidation
b. Realization
c. Crystallization
d. Repatriation
____________________________________________________________________________________________
394. Where an exporter fails to submit the shipping documents within 21 days from date of shipment to get post
shipment finance
a. RBI permission is required
b. DGFT approval is needed
c. Both RBI and DGFT must authorize
d. AD can allow in genuine cases
____________________________________________________________________________________________
395. Banks have been authorized to approve direct dispatch of documents by themselves to overseas buyers per
shipment
a. Up to USD 1 lakh or its equivalent
b. Up to USD 5 lakhs or its equivalent
c. Up to USD one million or its equivalent
d. Up to USD 3 laksh or its equivalent
396. As per FDI Policy of 2016, what does a "Group Company" mean?
a. two or more enterprises which, directly or indirectly, are in a position to: (i) exercise fifty percent or more of
voting rights in other enterprise or (ii) appoint more than twentyfive percent of members of board of directors in
the other enterprise.
b. two or more enterprises which, directly or indirectly, are in a position to: (i) exercise twentysix percent or
more of voting rights in other enterprise or (ii) appoint more than fifty percent of members of board of directors in
the other enterprise.
c. two or more enterprises which, directly or indirectly, are in a position to: (i) exercise fifty percent or more of
voting rights in other enterprise and (ii) appoint more than twentyfive percent of members of board of
directors in the other enterprise.
d. two or more enterprises which, directly or indirectly, are in a position to: (i) exercise twentysix percent or
more of voting rights in other enterprise and (ii) appoint more than fifty percent of members of board of directors
in the other enterprise.
____________________________________________________________________________________________
391. C 392. C 393. C
394. D 395. C 396. B
Question Bank : International Banking, Treasury &Wealth Management

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

403. Under FDI, what does downstream investment mean?


a. indirect foreign investment by an eligible Indian entity into another Indian company/LLP by way of
subscription
b. indirect foreign investment by an eligible Indian entity into another Indian company/LLP by way of acquisition
c. Both (A) and (B)
d. Neither (A) nor (B)
____________________________________________________________________________________________

404. In which of the following sectors, FDI is not prohibited in India?


a. Lottery business including Government / private lottery
b. Gambling and Betting including casinos etc.
c. Online lotteries
d. None of these
405. Out of the following combinations of (1)sector/activity, (2)corresponding percentage of Equity/FDI Cap and
(3)entry route, find out the combination pair which is not correct for FDI in India.
a. (1) Exploration activities of oil and natural gas fields, infrastructure related to marketing of petroleum products
and natural gas (2) 100% (3) Automatic Entry
b. (1) Petroleum refining by the Public Sector Undertakings PSU without any disinvestment or dilution of
domestic equity in the existing PSUs (2) 49% (3) Automatic Entry
c. (1) Defence Industry subject to Industrial license under the Industries (Development and Regulation) Act,
1951 (2) 49% (3) Automatic Entry upto 49%
d. (1) Terrestrial Broadcasting FM (FM Radio) subject to such terms and conditions as specified from time to
time by Min.of Inf & Broadcasting for grant of permission for setting up of FM Radio Stations (2) 100% (3)
Government approval
406. Which one of the following definitions is not correct in respect of e-commerce variants in FDI in India?
a. E-commerce entity means a company incorporated under the Companies Act 1956 or the Companies Act
2013 or a foreign company covered under section 2 (42) of the Companies Act 2013 or an office, branch or
agency in India as provided in section 2 (v) (iii) of
b. Inventory based model of e-commerce means an e-commerce activity where inventory of goods and services
is owned by e-commerce entity and is sold to the consumers directly.
c. Marketplace based model of e-commerce means providing of an information technology platform by an e-
commerce entity on a digital and electronic network to act as a facilitator between buyer and seller.
d. All the above.
407. As per Guidelines for FDI into India on e-commerce sector which one of the following is not true?
a. 100% FDI under automatic route is permitted in marketplace model of e-commerce.
b. 100% FDI under automatic route is permitted in inventory based model of e-commerce.
c. An e-commerce entity will not permit more than 25% of the sales affected through its marketplace from one
vendor or their group companies.
d. E-commerce entity providing a marketplace will not exercise ownership over the inventory i.e. goods
purported to be sold. Such an ownership over the inventory will render the business into inventory based model.
408. Which one of the following is not true as per FDI norms on FDI in Single Brand Product Retail Trading in India?
a. Products should be sold under the same brand internationally i.e. products should be sold under the same
brand in one or more countries other than India.
b. Single Brand product-retail trading would cover only products which are branded during manufacturing.
c. In respect of proposals involving foreign investment beyond 51% , sourcing of 30% of the value of goods
purchased, will be done from India, preferably from MSMEs, village and cottage industries, artisans and
craftsmen, in all sectors.
d. None of these
403. C 404. D 405. D
406. D 407. B 408. D
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

427. Who issues licenses to Authorised Persons Aps?


a. FEDAI
b. ECGC
c. RBI
d. Ministry of Finance
____________________________________________________________________________________________

428. Which one of the following is not a Current Account Transaction?


a. Remittances for living expenses of parents, spouse and children residing abroad
b. Maintenance of foreign currency accounts in India and abroad by an Indian Resident
c. Expenses in connection with foreign travel, education and medical care of parents, spouse and children
d. Payments due as interest on loans and as not income from investments
____________________________________________________________________________________________

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
____________________________________________________________________________________________

430. The tenure of the Foreign Trade policy is


a. 3 years
b. 5 years
c. 1 year
d. 7 years
____________________________________________________________________________________________

431. Mid-term policy review of the current FTP will be after


a. 1 year
b. 2 years
c. 3 Years
d. 2 ½ years
____________________________________________________________________________________________

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%
____________________________________________________________________________________________

434. Identify the Nostro a/c


a. IB, OSB‟s JPY a/c with Bank of Japan in Tokyo
b. BOI‟s EURO a/c with Bank of Milan, Italy
c. IB‟s AUD a/c with Bank of Melbourne, Australia
d. All the above
____________________________________________________________________________________________

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
____________________________________________________________________________________________

437. Mirror account is a shadow of


a. Nostro account
b. Vostro account
c. Loro account
d. Euro 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
____________________________________________________________________________________________

446. No Foreign Exchange can be released for private travel of residents to


a. Bangladesh
b. Pakistan
c. Nepal & Bhutan
d. Iran
____________________________________________________________________________________________

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
____________________________________________________________________________________________

452. The Treasury Branch falls under


a. Category A
b. Category B
c. Category C
d. Category D
____________________________________________________________________________________________

453. Forex Authorised Branches are called


a. Category A
b. Category B
c. Category C
d. Category D
____________________________________________________________________________________________

454. Non-authorised Branches


a. Category A
b. Category B
c. Category C
d. Category D
____________________________________________________________________________________________

455. Our bank has a SWIFT Service Centre (SSC) at


a. CHENNAI
b. MUMBAI
c. DELHI
d. BANGALORE
____________________________________________________________________________________________

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
____________________________________________________________________________________________

462. Association of ADs formed with the approval of RBI


a. SEBI
b. FEMA
c. FERA
d. FEDAI
____________________________________________________________________________________________
457. C 458. B 459. A
460. B 461. B 462. D
Question Bank : International Banking, Treasury &Wealth Management

463. Arbitrager in a foreign exchange market


a. buys when the currency is low and sells when it is high
b. Buys and sells simultaneously the currency with a view to making riskless profit.
c. Sells the currency when he has a receivable in the future.
d. Buys and sells to make advantage of market imperfections
____________________________________________________________________________________________

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
____________________________________________________________________________________________

465. To which of the following does LIBOR relate?


a. Stock market prices
b. Commodity prices
c. Interest rates
d. Sensitive advances
____________________________________________________________________________________________

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
____________________________________________________________________________________________

468. ADRs are issued in _________


a. USD
b. EUR
c. STG
d. JPY
____________________________________________________________________________________________
463. B 464. A 465. C
466. C 467. B 468. A
Question Bank : International Banking, Treasury &Wealth Management

469. The Statutory Authority for Trade Control is


a. RBI
b. DGFT
c. FEDAI
d. Trade Control Board
____________________________________________________________________________________________

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
____________________________________________________________________________________________

471. Who notifies EXIM Policy?


a. EXIM Bank
b. RBI
c. Ministry of Commerce
d. Ministry of Finance
____________________________________________________________________________________________

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

475. BEF is the statement which banks submit to RBI relates to ::


a. Transactions in US Dollars
b. Non submission of documentary evidence for import
c. Over due export bills
d. Excess overnight limit position of the bank
____________________________________________________________________________________________

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
____________________________________________________________________________________________

477. Receipt of direct import bill by proprietorship/partnership firms


a. Not at all permitted
b. Requires prior approval of RBI
c. Can be permitted by AD up to USD300000
d. Can be permitted by AD only up to USD100000
____________________________________________________________________________________________

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
____________________________________________________________________________________________

480. Import License is required for import of _________


a. Prohibited items
b. Canalized items
c. both 1 and 2
d. Restricted Items
____________________________________________________________________________________________
475. B 476. A 477. C
478. D 479. A 480. D
Question Bank : International Banking, Treasury &Wealth Management

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
____________________________________________________________________________________________

484. BEF statement is to be submitted to RBI at _______ intervals


a. Quarterly
b. Half yearly
c. Monthly
d. Fortnightly
____________________________________________________________________________________________

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
____________________________________________________________________________________________

490. Which one of the following is related to Import


a. EDF
b. Bill of Entry
c. SOFTEX
d. SDF
____________________________________________________________________________________________

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.
____________________________________________________________________________________________

494. Who prescribes INCOTERMS_________?


a. RBI
b. IBRD
c. ICC
d. GATT
____________________________________________________________________________________________

495. The expanded form of INCOTERMS is


a. Indian company‟s terms
b. International Commercial terms
c. International confederation of trade & effective reforms in Marine Service

d. International Companies terms


____________________________________________________________________________________________
496. Which one of the following is not true about ISBP International Standard Banking Practice for the Examination
of Documents under Documentary Credits 745?
a. The ISBP is an ICC publication which provides important guidance regarding the examination of documents
presented against letters of credit.
b. ISBP can change the UCP 600 rules which apply to letters of credit
c. A fully revised version of ISBP ICC publication 745 was published in July 2013.
d. The ISBP provides practices that should be applied by documentary credit practitioners helping to reduce
discrepant presentations.
____________________________________________________________________________________________
497. As per ISBP International Standard Banking Practice for the Examination of Documents under Documentary
Credits 745 which one of the following need not necessarily be signed?
a. When a certificate is required by the letter of credit
b. When a declaration is required by the letter of credit
c. When a statement is required by the letter of credit
d. None of these
____________________________________________________________________________________________
498. As per ISBP International Standard Banking Practice for the Examination of Documents under Documentary
Credits 745 which one of the following is not true if the letter of credit calls for copy transport documents rather than
originals?
a. The ISBP states that UCP 600 articles 19-25 which relate to transport documents do not apply.
b. Copy transport documents are to be examined not merely confining to the extent expressly stated in the
credit
c. According to UCP 600 sub-article 14(f) it effectively means that the document presented appears to fulfil the
function of the required document
d. There is no confilict regarding the data on the document with any other document stipulated in the letter of
credit.
____________________________________________________________________________________________
493. C 494. C 495. B
496. B 497. D 498. B
Question Bank : International Banking, Treasury &Wealth Management

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
____________________________________________________________________________________________

507. Who is the applicant under LC mechanism


a. credit opening 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

511. A revocable LC can be revoked/ amended before the exporter ___________


a. amended/ cancelled without consent of all concerned
b. revoked at all
c. amended at all
d. amended after it is drawn
____________________________________________________________________________________________

512. An irrevocable credit is one which cannot be__________


a. amended at all
b. revoked at all
c. amended/ cancelled without consent of all concerned
d. amended after it is drawn
____________________________________________________________________________________________

513. A standby LC is substitute for__________


a. Documentary letter of credit
b. Travelers cheque
c. International credit card
d. Guarantee
____________________________________________________________________________________________

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

517. What is a back to back credit _________


a. LC opened at importer‟s bank
b. LC opened on the back of the LC instrument
c. LC opened by exporter‟s bank- on strength of original LC
d. LC opened with backing of blue chip Co
____________________________________________________________________________________________

518. Credit which is issued in lieu of a guarantee is called _________credit:


a. Back to back
b. Red clause
c. Green clause
d. Stand by
____________________________________________________________________________________________

519. A red clause credit is also called __________ credit.


a. Green clause credit
b. Advance payment / anticipatory credit
c. Back to back credit
d. Standby credit
____________________________________________________________________________________________

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
____________________________________________________________________________________________

524. A clean bill of lading means _____________


a. Bill without any document
b. B/L indicating goods are loaded on board
c. B/L stating goods are received in good condition
d. Bill with loading factor
____________________________________________________________________________________________

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
____________________________________________________________________________________________

531. How many terms are defined in INCOTERMS 2010?


a. 9
b. 11
c. 13
d. 15
____________________________________________________________________________________________

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
____________________________________________________________________________________________

550. Who is a Non-Resident as per FEMA?


a. A person who is not a resident is called a non-resident
b. A person residing in India for more than 182 days during the course of the preceding financial year
c. A person residing in India for more than 181 days during the course of the preceding financial year
d. A person residing in India for more than 180 days during the course of the preceding financial year
____________________________________________________________________________________________

551. Who is not a person of Indian Origin?


a. A foreigner, whose parents or grand parents were citizen of a country other than India
b. A foreigner spouse of Indian Citizen
c. A person who held Indian passport at any time
d. A foreigner whose parents or grand parents were citizen of India
____________________________________________________________________________________________

552. Which is not true?


a. For NRE accounts there is no tax in India on interest income.
b. For loan against security of FCNR Term Deposit, advance will be adjusted from remittance from abroad or by
adjustment of underlying FCNR(B) deposit on maturity or from other NRE Account or NRO account within the
cap of USD one million per financial year
c. NRO Account (i) if held in the name of two or more NRIs/PIOs may be held jointly (ii) if held jointly with
residents it will be on former or survivor bases.
d. Tax is not applicable on interest income on NRO deposits from other than DTA countries.
____________________________________________________________________________________________
547. C 548. B 549. A
550. A 551. A 552. D
Question Bank : International Banking, Treasury &Wealth Management

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
____________________________________________________________________________________________

556. Who are classified as persons resident in India


a. All Indian Citizens who have been staying in India any time after 25th March,1947.
b. Foreign citizens who stay in India for gainful employment, business etc., or in circumstances indicating an
uncertain or indefinite period of stay
c. Foreign citizens who come and stay in India with their spouses, if the spouses are residents in India
d. All the above
____________________________________________________________________________________________

557. Types of non-resident rupee accounts are


a. Ordinary Non-resident Rupee Accounts (NRO)
b. Non-Resident (External) Rupee Accounts (NRE)
c.
d. A & B
____________________________________________________________________________________________

558. Non-resident Foreign Currency accounts are


a. Foreign Currency Non-Resident (B) Accounts (FCNR-B)
b. Exchange Earner's Foreign Currency Accounts (EEFC A/c)
c. Resident Foreign Currency Accounts (RFC)
d. All the above
____________________________________________________________________________________________
553. A 554. C 555. D
556. D 557. D 558. D
Question Bank : International Banking, Treasury &Wealth Management

559. Non-Resident Accounts can be opened and maintained by


a. Foreigner during their temporary visit to INDIA
b. Non-Resident Indians
c. Persons of Indian Origin
d. All the above
____________________________________________________________________________________________

560. Foreign currency Loans for NRO Accounts


a. Permitted
b. Not Permitted
c.
d.
____________________________________________________________________________________________

561. Nominee in a NRE Account can be


a. Resident
b. Non-Resident
c. Both a&b
d. None
____________________________________________________________________________________________

562. Maximum period of NRE Deposits


a. 1 YEAR
b. 3YEARS
c. 5 YEARS
d. 10 YEARS
____________________________________________________________________________________________

563. Maximum period of FCNR (B) Deposits


a. 1 YEAR
b. 3YEARS
c. 5 YEARS
d. 10 YEARS
____________________________________________________________________________________________

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

565. Accounts For foreign tourists may be opened as


a. Ordinary Non-resident Rupee Accounts (NRO)
b.
c. Resident Rupee A/c
d. C A
____________________________________________________________________________________________

566. Foreign nationals resident in India can open


a. Ordinary Non-resident Rupee Accounts (NRO)
b.
c. Resident Rupee A/c
d. C A
____________________________________________________________________________________________

567. Resident Individuals are permitted to make investments abroad


a. Without any ceiling under automatic route
b. No general permission available
c. With RBI approval up to the limits
d. Within the overall limit of USD250000 per financial year under LRS
____________________________________________________________________________________________

568. Non- resident bank accounts are maintained in


a. the permitted currencies
b. the currency of the country of the bank maintaining the account.
c. the currencies in which FCNR are permitted to be maintaine
d. Indian rupees.
____________________________________________________________________________________________

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

583. All financial transactions should be executed only THROUGH


a. Email
b. SMS
c. written instructions of our customers
d. Phone
____________________________________________________________________________________________

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
____________________________________________________________________________________________

585. A foreign exchange transaction between two banks is


a. Merchant transactions
b. Inter bank transaction
c. Export
d. Import
____________________________________________________________________________________________

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
____________________________________________________________________________________________

591. The following is called an Authorised Person as per Section 10 of FEMA


a. ADs
b. Authorised Money Changers
c. Off – Shore Banking Unit
d. 1, 2 and 3
____________________________________________________________________________________________

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
____________________________________________________________________________________________

594. Service charges for forex transactions are stipulated by


a. FEDAI
b. RBI
c. IBA
d. AD
____________________________________________________________________________________________
589. C 590. D 591. D
592. C 593. B 594. D
Question Bank : International Banking, Treasury &Wealth Management

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
____________________________________________________________________________________________

596. Current Foreing Trade Policy period is


a. 2015-20
b. 2014-19
c. 2013-18
d. 2011-16
____________________________________________________________________________________________

597. Basic Travel Quota


a. USD10000
b. USD25000
c. USD100000
d. USD250000
____________________________________________________________________________________________

598. Forex for Business Trip


a. USD10000
b. USD25000
c. USD100000
d. USD250000
____________________________________________________________________________________________

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

619. What is not true about ELECTRONIC FUNDS TRANSFER


a. Credits to NRE accounts permitted.
b. There is no cap on the transaction amount for non-trade transactions.
c. Maximum of Rs.15.00 lacs is permitted per trade transaction.
d. Donations / contributions to charitable institutions are also permitted through this channel.
____________________________________________________________________________________________

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)
____________________________________________________________________________________________

621. Remittance for which of the following i requires submission of 15CA/CB


a. Booking passage abroad - airline companies
b. LoanExtended to NRO
c. Travel for medical purpose
d. Import Transaction
____________________________________________________________________________________________

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
____________________________________________________________________________________________

623. What does CHIPS stands for?


a. Chinese Interbank Payment System
b. Clearing House Interbank Payment System
c. Chinese Automated Payment System
d. Clearing House Automated Payment System
____________________________________________________________________________________________

624. What does CHAPS stands for?


a. Chinese Interbank Payment System
b. Clearing House Automated Payment System in UK
c. Chinese Automated Payment System
d. Clearing House Automated Payment System
____________________________________________________________________________________________
619. D 620. d 621. D
622. C 623. B 624. B
Question Bank : International Banking, Treasury &Wealth Management

625. What is ABA Number


a. It is the number allotted by SWIFT to members to identify the sender of payments
b. It is the number allotted by SWIFT to members to identify the receiver of payments
c. It is the unique combination number of beneficiary bank and account number for international remittances
d. It is the number allotted by Federal Reserve of USA to banks participating in Fedwire to identify the
senders/receivers of payment
____________________________________________________________________________________________

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
____________________________________________________________________________________________

634. R returns is submitted to RBI by


a. B Catergory Branch
b. Corporate Office
c. Zonal Office
d. A Category Branches
____________________________________________________________________________________________

635. R return is submitted as on _____ dates of the month::


a. 1st, 7th, 15th 30th of the month
b. 15th and last day of the month
c. 1st and 15th of the month
d. last day of the month
____________________________________________________________________________________________

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
____________________________________________________________________________________________

641. The acronym SWIFT stands for


a. Safety Width in Financial Transactions
b. Society for Worldwide International Financial Transactions
c. Society for Worldwide Interbank Financial Telecommunications
d. Swift Worldwide Information for Financial Transactions
____________________________________________________________________________________________

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

643. Which of the following is not true regarding an AWB?


a. It is prima facie evidence of receipt of cargo.
b. It is a document of title to goods.
c. The date of dispatch indicated on the AWB will be deemed to be the date of shipment
d. AWB serves as an instruction sheet giving all the instruction needed for moving the goods.
____________________________________________________________________________________________

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
____________________________________________________________________________________________

645. An unregistered firm can make direct investment abroad


a. Up to 100% of net owned funds under automatic route
b. Up to 400% of net owned funds under automatic route
c. Up to 200% of net owned funds under approval route
d. Without any limit under approved route
____________________________________________________________________________________________

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
____________________________________________________________________________________________

647. The licence that is transferable is


a. Export licence
b. Advance licence
c. DEPB licence
d. REP licence
____________________________________________________________________________________________

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
____________________________________________________________________________________________

650. Which of the following is not false?


a. Trade credit can be arranged only for exporters
b. Trade credit can be arranged both for exporters and importers
c. Trade can be arranged only for importers
d. LOC / LOU / Guarnatee can be issued for availing Trade Credit by Banks for a period of 5 years
____________________________________________________________________________________________

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

667. Which one of the following is not true?


a. Derivates allow risk related to the price of the underlying asset to be transferred from one party to another.
b. All derivatives are insured against counter-party risk.
c. Hedging occurs when an individual buys an asset and sells it using a futures contract.
d. Forward contract is a contract specifying future delivery of an amount of an item at a price decided now and
the delivery is obligatory not optional.
____________________________________________________________________________________________

668. Which one of the following is not a participant in a derivative?


a. Labourers
b. Hedgers
c. Speculators
d. Arbitrageurs
____________________________________________________________________________________________

669. Which one of the following is not a characteristic of hedgers?


a. Hedgers are Market Players who wish to protect an existing asset position from future adverse price
movement.
b. To hedge a position, a market player needs to take an equal and opposite position in the futures market to
the one in the spot market.
c. Hedgers try to make a profit by betting on a certain market trend with regard to derivatives
d. Hedgers try to reduce another risk by buying or selling derivatives and are consequently immunized against
say for example a counterpart's credit risk.
____________________________________________________________________________________________

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
____________________________________________________________________________________________

671. In which of the following pairs, there is a mismatch?


a. Call Option-> A Contract that gives the owner the right but not the obligation to sell an item in the future at a
price decided now.
b. Call Option-> A Contract that gives the owner the right but not the obligation to buy an item in the future at a
price decided now.
c. Put Option:-> A Contract that gives the owner the right but not the obligation to sell an item in the future at a
price decided now.
d. Forwards> A Contract specifying future delivery of an amount of an item, at a price decided now. The
delivery is obligatory not optional.
____________________________________________________________________________________________
672. Which one of the following is not an economic function of the derivatives?
a. Derivatives market helps in transferring risks.
b. Derivatives market is useful in discovery of future as well as current prices.
c. Derivatives market helps in increasing short run investments and savings.
d. Derivatives market catalyses entrepreneurial activity.
____________________________________________________________________________________________
667. B 668. A 669. C
670. D 671. A 672. C
Question Bank : International Banking, Treasury &Wealth Management

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.,
____________________________________________________________________________________________

675. Which one of the following is not an Exchange traded derivative?


a. Interest Rate Futures
b. Swaps
c. Currency Futures
d. Index Options
____________________________________________________________________________________________

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
____________________________________________________________________________________________

680. What is a Bermudan Option?


a. An option that may only be exercies on expiration.
b. An option that may be exercised on any trading day on or before expiry.
c. An option that may be exercised only on specified dates on or before expiration.
d. None of these
____________________________________________________________________________________________

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
____________________________________________________________________________________________

682. What is hedging?


a. Covering risk
b. A foreign currency
c. A letter of credit
d. A bank loan product
____________________________________________________________________________________________

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
____________________________________________________________________________________________

706. Which one of the following is not an Asset Allocation Principle?


a. Risk and return are related.
b. Risk depends on the length of time one holds the investment
c. Rupee cost averaging can increase the risk of investing
d. Risks that an investor can take depends on the investor's capacity to take risks and his attitude to take risks.
____________________________________________________________________________________________

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.