B.B.A-B.B.A FOREIGN EXCHANGE AND FINANCING OF FOREIGN TRADE(Alagappa University - Directorate of Distance Education-2012)

DISTANCE EDUCATION
B.B.A.(Banking)/B.B.A. (Banking) LATERAL DEGREE EXAMINATION, MAY 2012.
FOREIGN EXCHANGE AND FINANCING OF FOREIGN TRADE
(2005 Onwards)
Time : Three hours Maximum : 100 marks
PART A — (5 × 8 = 40 marks)
Answer any FIVE questions.
1. Distinguish between balance of trade and balance of payments.
2. Explain the features of bill of lading.
3. What is exchange control? What are the objectives of exchange control?
4. Explain the method of calculating forward rates based on cross rates.
5. State the features of duty drawback scheme.
6. Explain the methods of dealing with discrepancies in documents.
7. Explain the features of standard policy of the ECGC.
8. Describe the mechanism of letter of credit.
PART B — (4 × 15 = 60 marks)
Answer any FOUR questions.
9. Explain the features of different types of documents used in foreign trade.
10. Define the term foreign exchange. Explain various functions of the foreign exchange department of a commercial bank.
11. Explain the exchange control regulations relating to exports.
12. Explain the procedure to be followed by the banker while accepting export bills for collection.
13. Examine the role of commercial banks in financing project exports.
14. Examine the role of the EXIM Bank in the promotion of foreign trade.
15. Explain the features of different types of letters of credit.

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