Time allowed : 15 minutes
Marks : 15 ( negative marking @ - 0.5 for wrong answer)
Name ________________________________ Roll No.________________
1 Foreign Exchange means
A deposits and credits
B traveller’s cheque
C letters of credit drawn by banks
D All
2 CHAPS stands for
A Clearing house automated system
B Clearing house automated payment system
C Clearing house automated payment scheme
D Certified house automated payment scheme
3 Nostro account is
A account maintained by bank in India with a bank abroad
B account maintained by a bank abroad with a bank in India
C account maintained by individual in India with a bank abroad
D account maintained by individual abroad with a bank in India
4 Forward Margin is the difference in
A spot and forward rate
B spot and ready exchange rate
C bid and offer rate
D commission of agent
5 To attract foreign investments rate of interest is
A increased
B decreased
C varies
D no change required
6 FEDAI is
A Foreign Exchange Dealer’s Association of India
B Foreign Exchange Dealer’s Authority of India
C Foreign Exchange Earner’s Dealer’s Association of India
D Foreign Exchange Earner’s Dealer’s Authority of India
7 If rate for US dollars works out to Rs. 49.12446 per
dollar it can be rounded off to Rs.
A 49.12500
B 49.1250
C 49.12525
D 49.1255
8 Tick in Futures means
A minimum size of
price movements
B maximum size of
price movements
C price movements
D contract size
9 The process of revaluing the contract based on the ruling
price for futures is known is
A making market
B marking to market
C market margin
D variation margin
10 Writer of the option is
A option seller
B option buyer
C agent
D broker
11 OTC options are available with
A banks
B exchange
C brokers
D both banks and exchange
12 Transaction exposure can be Hedged by
A Forward contract hedge
B Forward contract hedge and money market hedge
C Options and futures
D Forward contract hedge , money market hedge and Options
and futures
13 Economic Exposure relates to the effect of unexpected
changes in
A future operating cash flows
B present operating cash flows
C change in cash flows resulting from existing contracs
D All
14 Translation exposure is defined as likely increase or
decrease in the parent company’s net
worth caused by
A change in interest rate
B change in exchange rates
C both
D either of them
15 Under Direct Quotation
A buy high sell low
B buy high sell high
C buy low sell low
D buy low sell high
