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Tuesday, November 29, 2011

International Finance Quiz - 2

1. If ERD > IRD then exporter should avail a Rupee finance
[A]TRUE
[B]FALSE



2. In London Market of UK, the Indirect Quote Method is still adopted.
[A]TRUE
[B]FALSE



3. The Euro Commercial paper is supported by a team-syndicated credit with both sides of the transaction combined into one operation.
[A]TRUE
[B]FALSE



4. Cross currency forward contract is not meaningful if original contract is in Rupees to USD
[A]TRUE
[B]FALSE



5. Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument.
[A]TRUE
[B]FALSE



6. The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos.
[A]TRUE
[B]FALSE



7. Funding Options in domestic yen market are Futures, FRAs, Call and put options.
[A]TRUE
[B]FALSE



8. There is no difference between CIP and CIF contracts except the mode of transportation.
[A]TRUE
[B]FALSE



9. JV means Joint venture and WOS means World of Security.
[A]TRUE
[B]FALSE



10. Integrated branches of Commercial banks handle forex transactions as well as options, swaps, futures, arbitrage operations
[A]TRUE
[B]FALSE



11. At Least one principal Lender bank is essential for issue of the ADR or GDR.
[A]TRUE
[B]FALSE



12. Till August 1994 India was following the Indirect Methodof Rate quotation.
[A]TRUE
[B]FALSE



13. Cause of increase in cost of public issues Underwriting fees , selling commission
[A]TRUE
[B]FALSE



14. The Option period in the forward contract is at the option of the Banker, hence the bank has to be very conservative in quoting rates.
[A]TRUE
[B]FALSE



15. In red clause credit some clauses are printed in Red ink.
[A]TRUE
[B]FALSE



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