Professional Documents
Culture Documents
Mock Test
4. Study of full text (6 books) is necessary to pass the examination as there may be sub-sections with
minimum pass marks for each sub-section.
True /False
a. 1947
b. 1950
c. 1958
d. 1991
Yes/No
d. only b
6. Are banks required to display their card rates for foreign currencies on their websites and/or their B Category
branches?
Yes/No
a. 5.00 pm
b. 4.45 pm
c. 4.30 pm
d. 4.00 pm
8. Export bill payable in countries with externalization issues need not be crystallised
True /False
9. In case of non-payment on due date of export bills that was purchased/discounted/negotiated, the foreign
currency liability has to be crystallised. For handling such cases AD* should
b. be guided by RBI
c. be guided by FEDAI
c. Time taken between availing of post shipment credit and receipt of bill proceeds.
a. 15
b. 20
c. 25
d. 30
12. After receipt of credit advice/statement of nostro account and compliance of guidelines, if there is a delay in
crediting proceeds of export collection, is the exporter entitled for compensation?
Yes/No
13. When a bank defaults in sending Form A3, what is the maximum claim amount against the bank is Rs._____
a. 1000
b. 10000
c. 5000
d. No cap
14. If a forward contract is cancelled after maturity, the customer is eligible for profit/loss arising from the
cancellation
True/False
15. Simply put, premium/discount arises out of interest rate difference between two currencies.
True/False
16. Two way quotes does not help add depth and liquidity in foreign exchange market
True/False
17. In the absence of any instructions from the customer a contract which has matured shall be cancelled by the
bank on the _______ working day after the maturity date
a. 2nd
b. 3rd
c. 5th
d. 7th
18. When the maturity date of a forward contract falls on a known holiday the settlement will be on
c. Same day
19. "KNOWN HOLIDAY" is one which is known at least _____ working day before the date
a. 3
b. 2
c. 5
d. 7
20. The member banks of FEDAI are bound by FEDAI in determining the charges for various types of forex
transactions offered
True/False
21. For forward booked under "Contracted Exposure" the underlying documents are to be submitted within _____
days
a. 2
b. 5
c. 7
d. 15
22. Cost Reduction Structures (CRS) derivatives products should be offered to companies with a minimum networth
of __ Crore.
a. 50
b. 100
c. 200
d. 500
23. After transfer of funds between VOSTRO accounts with two banks the bank carrying out interbank VOSTRO
transfer by RTGS should sent form A3 so as to reach the beneficiary within ____ working days
a. 3
b. 5
c. 7
d. 10
a. Bill Buying
b. TT Buying
c. Currency selling
d. TT selling
True/False
True/False
a. TT Selling
b. TT Buying
c. Bill Buying
d. Bill Selling
a. Forward
b. Futures
c. Derivatives
d. Options
29. The maximum loss that the buyer faces in a options deal is
a. Deal amount
b. Unlimited
c. Exchange fluctuation
d. Option premium
30. The maximum loss that the buyer faces in a options deal is
a. In the money
b. At the money
31. The price at which the option buyer has the right to buy or sell is called
a. Premium
b. Strike price
c. Delta
d. Gamma
32. In trading ______ option the buyer may exercise the option on or before the maturity date
a. European
b. American
c. Traditional
d. Continental
33. In the Indian scenario usually writing of options by customer is not permitted
True/False
34. A derivative instrument or product is one whose value changes with changes in one or more underlying market
variables such as equity or commodity prices, interest rates or foreign exchange rates
True/False
35. Forward contract is a non-binding agreement between two parties to purchase and sell a specific quantity of
foreign currency at a specified price but with delivery and settlement as a specified future date.
True/False
36. A future contract is an agreement between two parties to buy or sell an asset at an uncertain time in future for a
certain price
True/False
37. An option contract is the right to buy or sell a specific quantity of a given asset as a specific price after a specific
date in the future.
True/False
True/False
39. A single limit under past performance can be used for imports and exports.
True/False
40. For calculating limit for past performance for exporter as well as importer, banks can take average of three
years’ export/import turnover or last year’s export/import turnover, whichever is lower.
True/False
41. Once cancelled, forward contracts booked under past performance cannot be rebooked.
True/False
42. Under special dispensation, SMEs can book, cancel, rollover forward contracts without production of underlying
documents subject to certain conditions
True/False
43. Under special dispensation for Residents, can an individual book forward contract?
Yes/No
Yes/No
a. Accounting
b. Money laundering
d. Correspondent Relationship.
Tips!
1. Remember the definitions, particularly those under chapter ‘ Forward Contracts and Other Derivatives’
2. Work out practical examples on Exchange Arithmetic given at the end of the book.