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Free Download as PDF of Foreign Exchange Management Questions with Answers as per exam pattern, to help you in day to day learning. We provide all important questions and answers for all Exam.
25. Market selection as a strategy to manage economic exposure requires-
- [A] preferring domestic market to foreign market
- [B] preferring market with fixed exchange rate
- [C] shifting to a market whose currency has appreciated
- [D] shifting to a market whose currency has depreciated
Answer: Option [C]
26. The transaction in which the bank receives local currency from the customer and pays him foreign
currency is a-
- [A] purchase transaction
- [B] sale transaction
- [C] direct transaction
- [D] none of the above
Answer: Option [B]
27. Interest for the transit period is included in -
- [A] bill buying rate
- [B] bill selling rate
- [C] usance bill buying rate
- [D] none of the above
Answer: Option [D]
28. The exchange rates quoted by an authorised dealer to its customers are known as-
- [A] authorised rates
- [B] commercial rates
- [C] merchant rates
- [D] indirect rates
Answer: Option [C]
29. Buying rate for ready merchant rate is derived from-
- [A] interbank spot buying rate
- [B] interbank ready buying rate
- [C] interbank spot selling rate
- [D] none of the above
Answer: Option [A]
30. An import customer accepts a bill drawn on him. The bank will apply-
- [A] bill selling rate
- [B] bill acceptance rate
- [C] TT selling rate
- [D] no exchange rate, since no foreign exchange transaction is executed
Answer: Option [D]
31. In calculating cross rates, exchange margin is entered-
- [A] only once int he dollar/rupee rate
- [B] only once int he dollar/foreign currency rate
- [C] twice in the dollar/rupee rate and dollar/foreign currency rate
- [D] twice int he dollar/rupee rate and dollar/foreign
Answer: Option [A]
32. For calculating cross currency rates, banks in India use the dollar/foreign currency rate quotedin
- [A] Mumbai
- [B] London
- [C] New York
- [D] any international market
Answer: Option [D]
33. For option forward purchase transactions the forward premium will be reckoned
- [A] based on earliest delivery date
- [B] based on latest delivery date
- [C] based on the average due date for delivery
- [D] none of the above.
Answer: Option [A]
34. For funding the vostro acount, the bank in India will apply-
- [A] its TT buying rate
- [B] its TT selling rate
- [C] interbank spot buying rate
- [D] interbank spot selling rate
Answer: Option [C]
35. Both legs of swap will be executed
- [A] at the same rate
- [B] on the same date
- [C] at different rates
- [D] at different rates on different dates
Answer: Option [D]
36. A swap deal is executed by
- [A] entering into another swap deal
- [B] settling the difference int he rates
- [C] actual delivery of currencies
- [D] none of the above
Answer: Option [C]
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