Shri Bhausaheb Vartak College of Arts ,Commerce and Science, Borivali (West)

Program: - TYBBI Sem: - V Course: - INTERNATIONAL BANKING AND FINANCE

Sr. No Question A B C D Answer OPTION

Provided to
Secured Provided by Provided by
Syndicated loan is a loan that is Unsecured a Group of
by Group of Banks Group of
1 Customers C
Mortgages Banks
is the provision of banking services by one
Corresponden Internationa Domesti Internationa
bank (the“correspondent bank”) to another bank (the Foreign bank
t banking l banking c l banking
2 “respondent bank”) B
Banking
A sovereign credit rating is the credit rating of a, Multinational
Sovereign Banks Firm Sovereign
3 i.e., a national government company A
entity entity
LIBOR are used to reflect term interest rate across
Short Medium Long Federal Short
4 the globe. A
plays an important role in strengthen the banking
Federal bank Domestic bank Central banks Inter-banks Domestic bank
5 sector. B
The bank which opens the letter of credit in favour of
Issuing bank advising bank confirming bank lead bank Issuing bank
6 beneficiary is known as A
A letter of credit that can be used for multiple
transactions where the credit limit is not fixed is revolving transferable revocable clean revolving
7 letter of credit. A
8 is a rupee denominated NRI account. NRE NRO FCNR NPA NRO B
Loan can be provided in currencies as per the
one two multiple domestic multiple
9 borrowers demand in case of loan syndication. C
The loan amount contributed by several lenders in a may or may not be may or may not
is equal is double decided by RBI
10 syndicated loan equal be equal C
The risk that the bank will not receive funds from its Foreign exchange
Settlement risk Liquidity Risk Political risk Settlement risk
11 counter-parties on the due date is called . risk A
risk relates to the inability of a bank to unwind its
foreign
asset at the market price and meet its obligation of Liquidity Political potential payoff Liquidity
exchange risk
12 payment on the due date. A
 Shri Bhausaheb Vartak College of Arts ,Commerce and Science, Borivali (West)
Program: - TYBBI Sem: - V Course: - INTERNATIONAL BANKING AND FINANCE

Sr. No Question A B C D Answer OPTION

In options for call and put a right a price called the
Futures premium Liquidity discount premium
13 option . B
risk, as it is otherwise known, arises due to
adverse movements of interest rates or interest operational risk Interest rate political risk Currency swaps Interest rate
14 rate B
differentials.
gives the buyer the right but not the obligation
to buy a given quantity of the underlying asset, at a currency calls puts forward calls
15 given B
price on or before a given future date.
When a country experiences its interest rates are
Boom Depression Recession high growth Recession
16 likely to fall. C
is where you can buy or sell a currency, at fixed
forward market domestic market currency market options market forward market
17 future date for a pre-determined rate. A
The risk that a government may default on its debt
political risk sovereign risk transfer risk transaction risk sovereign risk
18 obligation B
An act which in enacted to regulate payments and
FERA FEMA FEDAI FIMMDA FEMA
19 foreign B
exchange in India, is .
an act intiated to facilitate external trade and
payments and to promote orderly management of FERA FEMA FEDAI FIMMDA FEMA
20 the B
forex market in the country.
Foreign
facilitates the conversion of one Commercia
Exchang Forex Market NABARD Forex Market
country’s currency into another. l Bank
21 e C
Market
Foreign
The carry out buy/sell orders from their Commercia
Exchang Forex Market Commercial Bank NABARD
retail clients l Bank
22 e Market C
is a foreign exchange rate quoted as the domestic Exchange rate
Direct Quote Forex market Futures market Direct Quote
23 currency Quote A
 Shri Bhausaheb Vartak College of Arts ,Commerce and Science, Borivali (West)
Program: - TYBBI Sem: - V Course: - INTERNATIONAL BANKING AND FINANCE

Sr. No Question A B C D Answer OPTION

is the price that a trader will get for selling a
Bid price Ask rate Spread Spread % Bid price
24 single base currency. A
The difference between the bid price and the ask price in
Spread bid rate Ask rate Direct rate Spread
25 a forex quote is normally called . A
risk arises if a country suddenly suspends or
imposes a moratorium on foreign payments because Mismatch risk Transaction risk Open position risk Sovereign risk Sovereign risk
26 of Balance of payments or other problems. D
placed mainly in countries other than the one in
Domestic bonds Foreign bonds Eurobonds Global bonds Eurobonds
27 whose currency the bond is denominate C
SEBI has set as the lower limit for the IDRs to be
Rs.5 crores Rs.50 crores Rs.500 crores Rs.5000 crores Rs.50 crores
28 issued by the Indian companies. B
The minimum investment required in the IDR issue by
Rs2 lakh Rs.5lakh Rs.20lakh Rs.50Lakh Rs2 lakh
29 the investors has been fixed at by SEBI. A
is issued locally by a domestic borrower usually
Domestic bonds Foreign bonds Eurobonds Global bonds Domestic bonds
30 denominated in the local currency. A
A Japanese company issuing bonds in Yen Currency in
Domestic bonds Foreign bonds Eurobonds Global bonds Domestic bonds
31 Japan is an example of A
The main risk associated with domestic bonds is the risk
Bankruptcy Obsolescence Exchange Credit Bankruptcy
32 of A
Straight fixed rate Eurobonds are typically bearer bonds
Annually Half yearly Quarterly Monthly Annually
33 and pay coupon interest _ A
In the case of offering, the bonds convert into
FCCB FCEB GDR ADR FCCB
34 shares of the company that issued the bonds. A
are instruments issued by registered foreign
institutional investor (FII) to overseas investors, who Participator Participator
Eurobonds FCCB FCEB
wish to invest in the Indian stock markets without y notes y notes
registering themselves with the market regulator,
35 A
SEBI.
 Shri Bhausaheb Vartak College of Arts ,Commerce and Science, Borivali (West)
Program: - TYBBI Sem: - V Course: - INTERNATIONAL BANKING AND FINANCE

Sr. No Question A B C D Answer OPTION

The artificial currency created by IMF to be used as
SDR Gold coins Paper currency Bitcoins SDR
36 supplementary Reserve Asset is called as A
Broad measure of a country's international trade in goods Receivable
Current account Capital account Trade account Current account
37 and services are called account A
Account reflecting changes in country ownership of Receivable
Current account Capital account Trade account Capital account
38 long- account B
term and short-term financial assets are called
When a country experiences its interest rates are
Boom Depression Recession Development Recession
39 likely to fall. C
International bank for reconstruction and development
World bank Monetary fund European bank BWS World bank
40 also popularity called A
The is an international reserve asset, created by
the IMF in 1969 to supplement its member countries BWS SDR ADR GDR SDR
41 official B
reserves.
regulates SDRs which would accept as reserves
IMF IBRD ICRA IFC IMF
42 and use for the settlement of international payments. A
The Smithsonian agreement was abandoned in March
1978 1972 1971 1967 1972
43 B
The collapse of the system is related to Tiffens Snake in the
Gold standard Bretton woods Gold specie Bretton woods
44 paradox. Tunnel B
Foreign
is the act of trading different currencies. Arbitrage Foreign trade Exports Foreign trade
45 exchange C
a. Is b. Remains Is allowed to
Is determined Is allowed to
determined by extremely vary
A floating exchange rate are by the actions vary accordingly
the national stable over long accordingly
of central to market force.
governments period of times. to market
46 banks. D
involved. force.
 Shri Bhausaheb Vartak College of Arts ,Commerce and Science, Borivali (West)
Program: - TYBBI Sem: - V Course: - INTERNATIONAL BANKING AND FINANCE

Sr. No Question A B C D Answer OPTION

Managed Managed
The current system of international finance is a Fixed Floating
Gold standard float float
exchange rate exchange rate
47 exchange rate exchange rate D
system system
system system
Issuing Issuing
Who is the first party in ADR Issue Bank Stock exchange
48 Company Customer Company B
49 FERA was replaced by RBI World bank FEMA Commercial Bank FEMA B
50 The price which is average of BID & ASK PRICE MID Ask BID SPOT MID A