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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.
49. The reduction in the value of a currency due to market forces is known as
- [A] Appreciation
- [B] Revaluation
- [C] Depletion
- [D] Depreciation
Answer: Option [D]
50. Paper currency was used for internal use and gold was used for international settlement under _________ standard
- [A] IMF
- [B] gold bullion
- [C] fixed
- [D] floating
Answer: Option [B]
51. Convertibility of rupee refers to its convertibility into a ______ as desired by its holder.
- [A] foreign currency
- [B] local currency
- [C] Bank Notes
- [D] Demand Draft
Answer: Option [A]
52. Balance of payment records _________ transactions of the country with outsiders
- [A] economic
- [B] debit
- [C] credit
- [D] cash
Answer: Option [A]
53. Generally exports are recorded at _________ value in balance of payments
- [A] FOB
- [B] CIF
- [C] CPT
- [D] CIP
Answer: Option [A]
54. The current account of balance of payments includes
- [A] unilateral payments
- [B] portfolio investments
- [C] short term borrowings
- [D] long term borrowings
Answer: Option [A]
55. Basic balance in balance of payments refers to
- [A] the balance of payments on current account
- [B] the combined balance of current and capital accounts
- [C] the balance in official reserves account
- [D] the total of balance of current account and balances on long term items in capital account.
Answer: Option [D]
56. TT buying rate is applicable for transactions where-
- [A] remittance is received by telecommunicaton
- [B] remittance is sent by telecommunication
- [C] the nostro account of the bank is already debited
- [D] the nostro account of the bank is already credited
Answer: Option [D]
57. A 'credit in balance of payments indicates
- [A] accumulation of bank balances abroad
- [B] foreign direct investment received into the country
- [C] earning of foreign exchange by the country
- [D] earning of foreign exchange or incurring of liability abroad or decrease in asset abroad
Answer: Option [D]
58. Rupee is partially convertible on
- [A] current account
- [B] vostro account
- [C] capital account
- [D] nostro account
Answer: Option [C]
59. The rate used for all transactions that do not involve handling of documents by the banks is
- [A] TT buying Rate
- [B] TT selling rate
- [C] Bill selling rate
- [D] Bill buying rate
Answer: Option [B]
60. The bank should verify the letter of credit/sale contract for booking a-
- [A] forward sale contract
- [B] forward purchase contract
- [C] cancelleing a forward contract
- [D] none of the above
Answer: Option [C]
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