Institute of Chartered Financial Analysts of India (ICFAI) University 2006 Certification Finance International and Trade – I - Question Paper

(a) Liner bill of lading (b) 3rd party bill of lading

(c) Through bill of lading (d) House bill of lading

(e) Charter party bill of lading.
< ans >

26.
Covered IRP does not hold good perfectly because of the subsequent reasons:

I. Transaction costs. II. Political risks.

III. Economies of scale. IV. Hedging.

(a) Only (III) above (b) Both (I) and (II) above

(c) Both (I) and (III) above (d) Both (II) and (III) above

(e) All (I), (II), (III) and (IV) above.
< ans >

27.
An 8% foreign bond which pays coupons on January one and July one is traded in the secondary market where buyer pays accrued interest to seller on 30/360 basis. If it is sold on November 26, how much accrued interest would be paid by the buyer of the bond to the seller (in terms of percentage of face value)?

(a) 3.24% (b) 3.29% (c) 1.61% (d) 1.65% (e) 2.67%.
< ans >

28.
As per Uniform Rules for Collection (URC 522)

I. Collections should not contain bills of exchange payable at a future date with instructions that commercial documents are to be delivered against payment.

II. If a collection contains a bill of exchange payable at a future date and the collection instruction shows that commercial documents are to be released against payment, then documents will be released only against such payment.

III. If a collection contains a bill of exchange payable at a future date and the collection instruction does not indicate anything, then commercial documents will be released only against acceptance.

(a) Only (III) above (b) Both (I) and (II) above

Earning:   Approval pending.