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

(a)
DAF (Delivered at Frontier)

(b)
DES (Delivered at Ex. Ship)

(c)
CPT (Carriage Paid To)

(d)
DDP (Delivered Duty Paid)

(e)
DEQ (Delivered at Ex. Quay).


< ans >

7.
Packing Credit Loan or Advance can be granted to a maximum amount of

(a)
Any amount without restriction can be sanctioned, as export finance is a priority advance and refinance is also available

(b)
Maximum amount can be the need based requirement of exporter keeping a needed margin

(c)
Maximum amount will be the value of confirmed order / LC keeping a needed margin

(d)
FOB value of the goods or domestic value of goods which ever is lower

(e)
There are no quantitative restrictions on granting packing credit loan.


< ans >

8.
While appraising projects using the adjusted current value technique, cash outflows due to repayment of a concessional loan are discounted with

(a)
The risk free rate of discount

(b)
The rate of interest on the loan

(c)
The all-equity discount rate

(d)
The market rate of interest on the loan

(e)
The rate of interest faced by the company at home.


< ans >

9.
If, spot €/$ : 0.8293 / 0.8295

3m Forward : 0.8296 / 0.8298

6m Forward : 0.8304 / 0.8306

then

(a)
€ is at a premium for 3m and 6m

(b)
$ is at a premium for 3m and at a discount for 6m

(c)
€ is at a discount for 3m and at a premium for 6m

(d)
€ is at a premium for 3m and at a discount for 6m

(e)
$ is at premium for three m and 6m.


< ans >

10.
As per IMF Manual, for the purpose of entering the transactions into BOP account, the evaluation of imports and exports will be done at

(a)
Exports on FOB basis and imports on CIF basis

(b)
Exports and imports on CIF basis

(c)
Exports on CIF basis and imports on FOB basis

(d)
Exports and imports on FOB basis

(e)
evaluation of imports and exports either on CIF basis or FOB basis depending upon the convenience of the country preparing the balance of payment account.


< ans >

11.
If a country is experiencing deflation while foreign countries are experiencing inflation, which of the subsequent would be actual if the country allows its currency to float?

(a)

Earning:   Approval pending.