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

(e) Replenishment License.
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13.
Which of the subsequent letter of credit is mostly used in countries where financial gurantees are prohibited by law?

(a) Transferable L/C (b) Back – to – Back L/C

(c) Revolving L/C (d) Confirmed L/C

(e) Stand by L/C.
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14.
In order to avail post – shipment finance, the exporter should submit the documents evidencing export to the bank within ____ days from the date of shipment of goods.

(a) 10 (b) 21 (c) 31 (d) 45 (e) 60.
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15.
When country’s Central Bank increases the money supply, the currency

(a) Gains value both in terms of the domestic goods and services it can buy and in terms of the foreign currency it can buy

(b) Gains value in terms of the domestic goods and services it can buy, but loses value in terms of the foreign currency it can buy

(c) Loses value in terms of the domestic goods and services it can buy, but gains value in terms of the foreign currency it can buy

(d) Loses value both in terms of the domestic goods and services it can buy and in terms of the foreign currency it can buy

(e) Gets more units of foreign currency.
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16.
When the goods are imported without authority but cleared by the custom authorities the authorized dealer can permit remittance up to ______ value of goods.

(a) FOB (b) C&F (c) CIF (d) Exworks (e) FAS.
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17.
Suppose the real exchange rate is ½ gallon of Canadian gasoline per gallon of U.S gasoline, a gallon of U.S. gasoline costs $1.50 in U.S. and a gallon of Canadian gasoline costs C $3.90 in Canada. What is the nominal exchange rate?

(a) 0.65 Canadian dollars per U.S. dollar

(b) 0.35 Canadian dollars per U.S. dollar

(c) 1.25 Canadian dollars per U.S. dollar

(d) 1.30 Canadian dollars per U.S. dollar

Earning:   Approval pending.