Description : If a draft is made to bearer, payment should be made to _____. A. a bank B. drawer C. acceptor D. anyone who presents the draft E. all of the above
Last Answer : D. anyone who presents the draft
Description : When IBM ships products to its subsidiary in Argentina, it will most likely use a ____ draft. A. sight B. clean C. D/P D. demand E. all of the above
Last Answer : B. clean
Description : Which of the following is not true of a letter of credit? A. it is a document B. issued by a bank C. at the request of the exporter D. the bank agrees to honor a draft drawn on the importer E. payable in the designated currency
Last Answer : C. at the request of the exporter
Description : Which of the following documents should necessarily accompany a draft? A. certificate of origin B. weight list C. packing list D. inspection certificate E. none of the above
Last Answer : E. none of the above
Description : Which of the following is not an important document in foreign trade? A. a check for the value of goods B. a draft C. bill of lading D. a letter of credit E. none of the above
Last Answer : A. a check for the value of goods
Description : A commercial invoice is issued by _____. A. exporter B. exporter's bank C. importer D. importer's bank E. confirming bank
Last Answer : A. exporter
Description : If an exporter is doubtful about an issuing bank's ability to pay, he will expect a domestic bank to join the transaction in a _____ letter of credit. A. revolving B. irrevocable C. revocable D. unconfirmed E. confirmed
Last Answer : E. confirmed
Description : Buying a company's accounts receivable on a nonrecourse basis is known as _____. A. switch trading B. financing C. factoring D. funding E. free trade
Last Answer : C. factoring
Description : In a _____ countertrade the initial seller receives compensation in products that arise out of the original sale. A. consignment B. barter C. counterpurchase D. buy-back agreement E. switch trading
Last Answer : D. buy-back agreement
Description : A document that contains a precise description of the goods is known as a _____. A. weight list B. packing list C. commercial invoice D. certificate of origin E. consular invoice
Last Answer : C. commercial invoice
Description : If a letter of credit can be neither cancelled nor modified without the consent of all parties, it is known as _____. A. revolving B. irrevocable C. revocable D. unconfirmed E. unclean
Last Answer : B. irrevocable
Description : A(n) _____ bill of lading does not guarantee that the goods have been loaded on the vessel. A. on-board B. foul C. received-for-shipment D. straight E. order
Last Answer : C. received-for-shipment
Description : If a carrier is instructed to deliver goods to an importer, a _____ bill of lading is used. A.straight B. order C. documentary D. on-board E. clean
Last Answer : A.straight
Description : Foreign exchange risk can be reduced by using _____. A. forward contracts B. futures contracts C. currency options D. currency denomination E. all of the above
Last Answer : E. all of the above
Description : Which of the following is not necessarily a party to a forfaiting transaction? A. exporter B. importer C. broker D. bank E. forfaiter
Last Answer : C. broker
Description : When exporting some common pitfalls include: A. failure to use an export management company B. failure to print service, sales, and warranty messages in local languages C. chasing orders around the ... orderly growth D. failure to consider licensing or joint venture agreements E. all of the above
Description : The “three C’s” of international commerce are: A. customers B. commitment C. currency D. cultural sensitivity E. A, B, and D
Last Answer : C. currency
Description : Which of the following is not a form of countertrade? A. barter B. consignment C. switch trading D. counterpurchase E. compensation agreement
Last Answer : B. consignment
Description : Which of the following is not a form of offset agreements? A. coproduction B. licensed production C. subcontractor production D. cash in advance E. technology transfer
Last Answer : D. cash in advance
Description : Which of the following is not true of a consular invoice? A. provides customs officials with all information B. facilitates easy customs clearance C. helps customs officials assess duties D. issued by the consulate of the exporting country E. it is not a title to the goods
Last Answer : D. issued by the consulate of the exporting country
Description : Which of the following may be required as additional documents in a letter of credit? A. commercial invoice B. insurance document C. consular invoice D. certificate of origin E. all of the above
Description : Documentary drafts require various shipping documents such as ____. A. bills of lading B. insurance certificates C. commercial invoices D. A and B E. A, B, and C
Last Answer : E. A, B, and C
Description : Forms of countertrade include the following except ___. A. simple barter B. clearing arrangement C. switch trade D.counterpurchase E. mutual agreement
Last Answer : E. mutual agreement
Description : Which of the following is not a condition for drafts to be negotiable? A. must be in writing, signed by the drawer B. must contain a promise to pay a certain sum if goods are received C. must contain an ... D. must be payable on sight or at a specified date E. must be made out to order or bearer
Last Answer : B. must contain a promise to pay a certain sum if goods are received
Description : ______ risk is the potential exchange loss from outstanding obligations as a result of exchange-rate fluctuations. A. Trade B. Exchange C. Finance D. Noncompletion E. Transaction
Last Answer : E. Transaction
Description : Which of the following is not a basic objective of documentation in foreign trade? A. to assure that the exporter will receive the payment B. to assure that the importer will receive the goods C. to eliminate risk of noncompletion D. to reduce foreign exchange risk E. none of the above
Description : The _______ bill is properly stamped. a. Demand b. Usance c. Expired
Last Answer : b. Usance
Description : Which of the following is the negotiable instrument? A. Fixed Deposit of a Bank B. Share certificate issued by a PSU C. Demand Draft issued by a bank D. Debenture of a company E. Airway Receipt
Last Answer : C. Demand Draft issued by a bank Explanation: A demand draft is a negotiable instrument similar to a bill of exchange. A bank issues a demand draft to a client (drawer), directing another bank (drawee) or one of its own branches to pay a certain sum to the specified party (payee).
Description : Bankers what are your crazy bank stories?
Last Answer : I worked for a bank that had a free coin counting machine and there was a dude that came to exchange his coins who had, I KID YOU NOT, a hole on the back of his pants and it was smeared and whenever he’d come he stunk the whole damn place
Description : Which one of the following is not a function of the central bank in an economy? (1) Dealing with foreign exchange (2) Controlling monetary policy (3) Controlling government spending (4) Acting as a banker's bank
Last Answer : (3) Controlling government spending Explanation: A central bank, reserve bank, or monetary authority is a public institution that manages a state’s currency, money supply, and interest rates. Central banks also usually oversee the commercial banking system of their respective countries.
Description : A document issued by Bank for local payments a. NEFT b. RTGS c. EFT d. Banker’s Cheque/Pay Order
Last Answer : d. Banker’s Cheque/Pay Order
Description : Which of these terms are/is appropriate for RBI? (a) Banker’s Bank ; (b) Banker’s to the Government ; (c) Both ; (d) None
Last Answer : (c) Both ;
Description : Which one of the following is not a function of the central bank in an economy ? (1) Dealing with foreign exchange (2) Controlling monetary policy (3) Controlling government spending (4) Acting as a banker’s bank
Last Answer : Controlling government spending
Description : Which one of the following statement is incorrect? (a) Oral acceptance is a valid acceptance. (b) Mere silence is not acceptance (c) Acceptance must be communicated (d) Acceptance may not be in the prescribed manner
Last Answer : (d) Acceptance may not be in the prescribed manner
Description : Which one of the following will constitute a valid acceptance? (a) An enquiry as to fitness of the subject matter of contract. (b) A provisional acceptance (c) Addition of a superfluous term, while accepting an offer. (d) A conditional acceptance.
Last Answer : (a) An enquiry as to fitness of the subject matter of contract.
Description : For an acceptance to be valid, it must be (a) Partial & qualified (b) Absolute & unqualified (c) Partial & unqualified (d) Absolute & qualified
Last Answer : (b) Absolute & unqualified
Description : Which one of the following statement about a valid acceptance of an offer is incorrect? (a) Acceptance should be absolute and unqualified. (b) Acceptance should be in the prescribed manner (c) Acceptance should be communicated (d) Acceptance should be made while the offer is subsisting
Last Answer : (d) Acceptance should be made while the offer is subsisting
Description : Which of the following is false? An offer to be Valid must (a) Contain a term the non- compliance of which would amount to acceptance. (b) Intend to create legal relations. (c) Have certain and unambiguous terms. (d) Be communicated to the person to whom it is made.
Last Answer : (a) Contain a term the non- compliance of which would amount to acceptance.
Description : Ethical universalism is defined as A. there being no universal set of ethical standards B. giving preference to one's own ethical values C. A set of universally accepted and valid ethical standards D. what is right is synonymous with what is legal E. moderation in all things
Last Answer : D. what is right is synonymous with what is legal
Description : Which of the following sentences best summarizes the differences between the red and blue oceans strategies? A. Red oceans are about avoiding head-to-head competition while blue oceans are ... are occasionally created well beyond existing industry boundaries. D. All the above options are valid
Last Answer : In the red oceans, industry boundaries are defined and accepted and the competitive rules of the game are known. Blue oceans are occasionally created well beyond existing industry boundaries.
Description : Which of the following sentences best summarizes the differences between the red and blue oceans strategies? A. Red oceans are about avoiding head-to-head competition while blue oceans are ... occasionally created well beyond existing industry boundaries. D. All the above options are valid
Last Answer : In the red oceans, industry boundaries are defined and accepted and the competitive rules of the game are known. Blue oceans are occasionally created well beyond existing industry boundaries
Description : Mark the correct option a) No Govt. servant shall use his position or influence directly or indirectly to secure employment for any member of his family in any company. b) A Govt. servant shall, as soon ... firm, intimate such acceptance to the prescribed authority. c) Both A & B d) None of these
Last Answer : c) Both A & B
Description : Which of the following legal statement is incorrect? (a) An agreement enforceable by law is a contract [Section 2] (b) All agreements are contracts [Section 10] (c) A proposal when accepted becomes ... and every set of promise forming the consideration for each other is an agreement [Section 2(e)]
Last Answer : (b) All agreements are contracts [Section 10]
Description : Which one of the following is NOT a benefit of multiple packaging? A)Facilitates special price offers B)Increases demand C)Increases consumer acceptance of the product D)Makes handling or storage easier E)Provides an overall image of the firm
Last Answer : E)Provides an overall image of the firm
Description : What is the full form of RDA? A. Rupee Draft Arrangement B. Rupee Demand Arrangement C. Rupee Draw Arrangement D. Rupee Drawing Arrangement E. None of the Above
Last Answer : D. Rupee Drawing Arrangement Explanation: Rupee Drawing Arrangement (RDA) is a channel to receive cross-border remittances from overseas jurisdictions. Under this arrangement, the Authorised Category I banks enter ... for a foreign (correspondent) bank. For the foreign bank it is a Nostro account.
Description : Which one is not an offline payment mode? a) Cash on delivery b) Cash before delivery c) Demand draft d) E-cheque
Last Answer : b) Cash before delivery
Description : All banks registered under the ___________ are considered co-operative banks. A. Banking Regulation Act 1949 B. The Bankers‘Books Evidence Act–1891 C. Cooperative Societies Act, 1912 D. Both (B) and (C) E. None of the Above
Last Answer : C. Cooperative Societies Act, 1912 Explanation: Co-operative banks operate in both urban and non-urban areas. All banks registered under the Cooperative Societies Act, 1912 are considered co-operative banks ... approved bylaws and amendments.co-operative banks work on a -no profit, no loss basis.
Description : Bankers Institute of Rural Development (BIRD) is a premier training establishment promoted by NABARD. Where is BIRD located? a. Ludhiana b. Lucknow c. Nashik d. Jabalpur e. Bhopal
Last Answer : b. Lucknow
Description : Why Demand draft cannot be dishonoured?
Last Answer : Need answer
Description : Model registration fee payment can be done by... a. Demand draft c. Cash b. Online d. Both a & b
Last Answer : Both a & b