IDBI-FX-LU1

Foreign exchange involves..........

• Conversion of one country's currency into another

• conversion of same country's currency into different smaller denominations

• conversion of two countries goods

An account maintained by a bank in India with another Bank in a foreign country is known as..........

• Vostro account

• Nostro account

• LORO account

Licence to deal in Forex transactions is issued by...........

• FEDAI

• Ministry of Finance

• RBI

When a firm in India buys goods from a company outside India, it involves........ of foreign exchange

• outgo

• inflow

• no effect on Forex

In all export transactions......... move out of the country and ......... flows into the country.

• Forex/Goods

• Goods/Forex

• goods/goods

Vostro account is held in the ........... currency

• currency of unrelated country

• foreign

• domestic

LORO is a type of............

• foreign currency account

• domestic

• Nomencalture only to refer the nostro account of a 3rd Bank

All operations in Foreign Exchange in India is governed by provisions under.........

• RBI Act 1934

• FEMA 1999

• Banking Regulation Act 1949

RBI derives its powers to issue guidelines to Banks on Forex transactions under.....

• FEMA 1999

• NI Act 1881

• SEBI

Banks which are empowered to do all types of transactions are called as.....

• AD II category

• AD 1 category

• AD III category