Symbiosis International Education Centre 2007 Post Graduate Diploma International Finance - Test 1- - Question Paper

True/False
ques. The American Dollar market comprises of the domestic segment of USD the offshore segment of USD.
accurate ans True
Your ans True

Multiple option Single ans
ques. Who can open an EEFC account?
accurate ans Individuals , firms, companies, resident in India
Your ans Individuals , firms, companies, resident in India

choose The Blank
ques. Over the years ________has been the most widely accepted currency in international capital market.
accurate ans American Dollar
Your ans Euro Dollar

Multiple option Multiple ans
ques. Under the liberalisation through FEMA, what can an AD offer to the clients, without the prior permission of RBI or Government?
accurate ans Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements
Your ans Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements

True/False
ques. Out of 15 member countries in European Union 12 countries commiteed themselves for a single currency.
accurate ans False
Your ans True

choose The Blank
ques. Global capital market can be understood from the study of ________.
accurate ans Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Your ans IMF, World Bank and local markets

Match The subsequent
Question Correct Answer Your ans

Investment by partnerships not in core activity form ODI form ODI

Investment under Automatic route Form ODA Form ODA

Proposal under non automatic route RBI Form NAR

Proposal under Normal route Special Committee OAB form


True/False
ques. JV means Joint venture and WOS means World of Security.
accurate ans False
Your ans True

choose The Blank
ques. ________ is drawn by taking mean of the bid and offered rates.
accurate ans Middle rate
Your ans Average rate

Match The subsequent
Question Correct Answer Your ans

IBRD World Bank World Bank

Collapse of IMF administered fixed exchange rates Early 1970s SDR

No International control on Exchange rates Mid 80s 2002

Euro as a currency note/coin 2002 Mid 80s


choose The Blank
ques. An choice on a future is ________.
accurate ans Derivative on a derivative
Your ans Derivative on a derivative

choose The Blank
ques. Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________.
accurate ans Euro Commercial Papers
Your ans FRNs

Multiple option Single ans
ques. How does ECGC protect exporters against risks for export finance
accurate ans Issuing different insurance policies covering various risks connected with exports at nominal premium
Your ans Acting as agents for exporters and taking the entire risk of transit, recovery etc

Multiple option Multiple ans
ques. As regards the due date of an choice exercise which methods are in vogue?
accurate ans American choice , European choice
Your ans American choice , European choice , Exercise date

Multiple option Multiple ans
ques. Who can problem the Certificate of Inspection?
accurate ans Export Inspection Council , Person authorised by Importer.
Your ans Export Inspection Council , Person authorised by Importer.

Multiple option Multiple ans
ques. What were the primary objectives of the group of 7 countries?
accurate ans Bring down the external value of US Dollar , Bring a few stability to exchange rates of all the countries
Your ans Bring down the external value of US Dollar , Bring a few stability to exchange rates of all the countries

Multiple option Single ans
ques. What is a bill of lading?
accurate ans Transport document representing movement of goods by water.
Your ans Transport document representing movement of goods by water.

Multiple option Multiple ans
ques. Why is Bill of Exchange a Quasi Negotiable Instrument?
accurate ans It represents title to goods , It is issued under Sale of Goods act
Your ans It represents title to goods , It is issued under Sale of Goods act

Multiple option Single ans
ques. Mr P has exported goods in May 2005 and is expecting payment of Euro 25000 by the last week of Sept 2005. provide details of the forward contract he can book :-
accurate ans He can book a sale contract any time from May 2005 till Mid Sept 2005, for Euro 25000 or less, for maturity last week of Sept.
Your ans He can book a sale contract any time from May 2005 till Mid Sept 2005, for Euro 25000 or less, for maturity last week of Sept.

Multiple option Single ans
ques. Financial management is complex process for
accurate ans Companies which have international trade
Your ans Companies which have international trade

Multiple option Single ans
ques. What is the objective of INCOTERMS?
accurate ans Arrange for transfer of risk from seller to buyer at a convenient place
Your ans Arrange for transfer of risk from seller to buyer at a convenient place

Multiple option Multiple ans
ques. What do you understand by 'Foreign Exchange Risk'?
accurate ans The change in value of currency alters the home currency value of an asset , liability, , The change in value of currency alters the home currency value of profit, loss, or future cash flows
Your ans The change in value of currency alters the home currency value of an asset , liability, , The change in value of currency alters the home currency value of profit, loss, or future cash flows

Multiple option Multiple ans
ques. The different arms of World Bank are:
accurate ans International Development Agency , Multinational Investment Guarantee Agency
Your ans International Development Agency , Multinational Investment Guarantee Agency , Asian Development Bank

Multiple option Multiple ans
ques. Which of these are considered as miscellaneous documents?
accurate ans Packing list , Weight certificate
Your ans Packing list , Weight certificate

choose The Blank
ques. ECGC provides cover to an Indian contractor for construction work abroad under ________.
accurate ans Construction works policy
Your ans Construction works policy

Earning:   Approval pending.