Question Bank on Foreign Exchange Disclosed


Foreign Exchange Quiz and Answers
Context - Bangladesh

1. Maximum no. of Bank directors according to Bank companies act 1991?


Ans: 20. But as per Bangladesh Guidelines for Establishing new Bank in Bangladesh 2011, Maximum Director will be restricted to 13.

2. Negotiable instrument act was passed on?


Ans: 1881 effect 01.03.1882.

3. Foreign exchange regulation act was established on?


Ans: 1947.

4. Minimum conviction punishment in Anti money laundering act 2012?


Ans: 4 years.

5. How many years to preserve the documents as per AML act 2012?


Ans: 5 years.

6. What is the percentage for value addition 'Enter port' business?


Ans:10%

7. Duplicate EXP is to report to BB ?


Ans: Within 14 days of : Shipment

8. LC to be opened within 150 days from the date of ?


Ans:  LCAF

9. Parties in a  bill of exchange?


Ans: drawer,drawee & payee

10. Term deposit account (NFCD,RFCD,FC,ERQ) ?


Ans: NFCD

11. Which one is investment account?


Ans: NITA

12. Tolerance of quantiy in a LC if not mentioned?


Ans: 5% (Article 30, UCP600) for products which are uncountable imported in bulk quantity.

13. Max period for doc checking?


Ans: 5 banking days (Article 14, UCP600)

14. SWOT elaborate?


Ans: Strength, weakness, opportunity & threat

15. Which one is post import finance(LTR,HP,CC,SOD) ?


Ans: LTR

16. What kind of finance HP?


Ans: Funded term finance.

17. Which one is the contingent liabiliy?


Ans: BG, LC , ABP.

18. What is the task of reimbursing bank?


Ans: Make Payment

19. Which certificate is issued by Govt. authority declaring that the imported is free from diseases and pest?


Ans: Phytosanitary certificate

20. What is the function of treasury division?


Ans: Manage Fund

21. Audit by BB is done with the empowerment by the act..... ?


Ans: Audit Sec. 44 of Bank Co. Act 1991.

22. What does TM means ?


Ans: Travel & miscellaneous.

23. What is the ICC Publication number of URC522?


Ans: 522, July 1995 (effective from 01.01.1996).

24. What is ICC Publication number of UCP600?


Ans: 600E, 2006 (effective from 01.07.2007).

25. What is ICC Publication number of URR725?


Ans: 725E, 2008 (effective from 01.10.2008).

26. What is ICC Publication number of Incoterm2010?


Ans: 715E, 2010 (effective from 01.01.2011).

27. What is ICC Publication number of ISBP745?


Ans: 745E, 2013.

28. F.Ex related Punishment/Penalty & Procedure mentioned in?


Ans: FERA 1947, Sec 23.

29. Power of Inspection mentioned in?


Ans: Sec 19A (AUDIT) of FERA 1947, and Sec. 44 (AUDIT) of Bank Co. Act 1991.

30. Bar of legal procedure mentioned in?


Ans:  FERA 1947, Sec 26.

31. Total no. of section (powers to make rule) in FERA 1947?


Ans: 27.

32. What is the rate of CRR?


Ans: 5.50%(DAILY BASIS) and 6.00 (Average)

33. What is the rate of SLR?


Ans: 19.00% (MONTHLY BASIS).

34. What is USANCE?


Ans: Time fixed for the payment of bills drawn in one country and payable in another is called USANCE.

35. What are the Important LC clauses?


Ans: The most important LC clauses are as follows.
31C- Date of issue
31D- Date of expiry and place
44C- Latest date of shipment
45A- Description of goods
46A- Documents required
47A- Additional conditions
48- Period of presentation
49- Confirmation
50. Applicant
57D- Advise through
59. Beneficiary
78- Reimbursement
79- Narrative for amendment

36. Procedure for BTB Payment against export failure is mentioned in?


Ans: Para 41, Sec (III) CHP 7 GFET 2018 VOL 1.

37. Single Pool Account for FC held for BTB is described in?


Ans: Para 42(i), Sec (III) CHP 7 GFET 2018 VOL1.

38. Numbers of Chapter in GFET 2018?


Ans: 20. 20th is Foreign Exchange Transaction by Enterprises in Economic Zones (EZs).

39. What are the Incoterms for Sea?


Ans: FAS, FOB, CFR & CIF.

40. What are the Multimodal Incoterms?


Ans: EXW, FCA, CPT, CIP, DAP, DPU & DDP.

41. AD License issued according to?


Ans: Sec 3, FERA-1947.

42. EDF for a single manufacturer exporter ?


Ans: $20million (FE Circular 17, 19 June 2016)

43. Total EDF Fund?


Ans: $2 billion fund

44. EDF interest rate?


Ans: 6month libor+ 1.5%

45. EDF Interest rate for branch?


Ans: 1% commission for Branch.

46. EXP in 2 copies and IMO in 1 copy changed by?


Ans: FE Circular 6 Dated 09July 2015.

47. LOCO means?


Ans: Sold at Store price. All other costs & risks are born by buyer.

48. FRANCO means?


Ans: Every costs to send goods to buyer are included in price.

49. Capital Machinery LC tenure can be?


Ans: 360days DP LC.

50. There are how many methods of payments?


Ans: 4 methods of payments-

1. Open Account
2. Cash in Advance
3. Documentary Collection
4. Documentary Credit. (LC) [ref: UCPDC600]

51. Discuss applicability of UCP600?


Ans:   Article 1, Application of UCP) states, "UCP600 are rules that apply to any documentary credit including, to the extent to which they may be applicable, any standby letter of credit, when the text of the credit expressly indicates that it is subject to these rules. They are binding on all parties thereto unless expressly modified or excluded by the credit".

52. What is mentioned in Article 2 of UCP600?


Ans: Article 2 of UCP600 is related to Definitions for the purpose of these rules.

53. What is mentioned in Article 3 of UCP600?


Ans: Interpretation.

54. What is mentioned in Article 4 of UCP600?


Ans: Credit vs Contract.

55. In which Article of UCP600 integration of “Contract, PI and the like” to the LC is discouraged?


Ans: Article 4.

56. In which Article of UCP600 it is mentioned that “Banks deal with goods not with goods, service or performance the documents may relate”?


Ans: Article 5 (Documents v. Goods, Services or Performance).

57. A credit available with Nominated bank is also…….?


Ans: Available with the Issuing Bank. (Article 6, UCP600)

58. A Credit must state what it is available by?


Ans: Sight Payment, Deferred Payment, Acceptance Or Negotiation (Article 6, UCP600).

59. A credit must not be issued available by…..?


Ans:  A draft drawn on the applicant (Article 6, UCP600).

60. The place of the bank with which the credit is available is the place …?


Ans: For presentation (Article 6, UCP600).

61. A place for presentation other than that of the issuing bank is….?


Ans: In addition to the place of the issuing bank (Article 6, UCP600).

62. An issuing bank’s undertaking to reimburse a nominated bank is …?


Ans: Independent of the issuing bank’s undertaking to the beneficiary (Article 7, UCP600).

63. What is Shell Bank?


Ans: Shell Bank means those banks which do not have any operation in the country where they have been registered as bank and any Regulated Financial Group. No banking relationship should be established with any Sell Bank.

64. What is TBML or Trade Based Money Laundering?


Ans: TBML stands for Trade Based Money Laundering. TBML or Trade Based Money Laundering is the process of exploiting the complex nature of international trade. Trade Based Money Laundering is done through Over-invoicing, Under-invoicing, Multiple-invoicing, Over- or under-shipment, Misrepresentation of quality etc.

The purpose of TBML is concealment of the source of money or its uses, tax evasion, terrorist financing etc.


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