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

(a) <12.55% (b) <10.76% (c) >12.55%

(d) >10.76% (e) <19.67%.
< ans >

24.
EXIM bank will participate in the credit, if the requirement of pre-shipment credit by exporters is for a period more than

(a) 60 days (b) 120 days (c) 150 days (d) 180 days (e) 360 days.
< ans >

25.
A flat duty charged based on the number of units regardless of the value of the goods is called

(a) Specific duty (b) Anti-dumping duty

(c) Countervailing duty (d) Ad valorem duty

(e) Transit duty.
< ans >

26.
An Indian investor purchased securities on the New York stock exchange when the exchange rate was Rs.46.50. The exchange rate at the end of 1 year become Rs.45.75.

The return realized on the American security is 20%.

The net return to the Indian investor is

(a) 16.33% (b) 17.85% (c) 18.06% (d) 19.45% (e) 20.60%.
< ans >

27.
The supply of domestic currency (Assume full convertibility) in the foreign exchange market rise when

I. Inflation in foreign countries rises slower than domestic inflation.

II. Foreign income falls.

III. Real interest rates in foreign countries rises faster than domestic real interest rates.



(a) Only (I) above (b) Only (II) above

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

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

28.
If a country has a Balance of Payments deficit and the Central Bank is subsequent floating exchange rate system, the value for its currency would

Earning:   Approval pending.