IDBI-FX-MOCK TEST-TERM END-Part 1

Which of the following categories is not an approved category of Authorised Dealers?

• Category B:Forex Designated Branches to deal in Foreign Exchange Business with our customers dealing in Exports & Imports.

• Category C:  Branches routing their customers Forex Business through Category B branches.

• Category D: Branches of newly opened Small Finance Banks.

Exchange Earners' Foreign Currency Account (EEFC) is an account maintained in.........

• Foreign Currency

• Domestic currency

• Both

Simultaneous purchase and sale of a currency for two different Maturities is called.......

• Swap

• Arbitrage

• Spot

Herstatt risk is also called as .....................

• country risk

• Time zone risk

• Currency Risk

Which was the first step in the organized risk Management in Banks?

• Basel Initiative

• RBI initiative

• World Bank Initiative

A NRI having NRE SB account with you approaches you to open an account for his wife who is a Pakistani national. How will you respond?

• Allow with the permission of your treasury

• Allow with the permission of RBI

• Allow and inform RBI

The Exchange rate determined for foreign currency exchange transaction between two currencies that are both valued against a third currency is known as........................

• Forward rate

• Spot rate

• cross rate

The exchange risk under FCNRB account is borne by...........

• RBI

• Depositor

• Bank

Potential inability to meet banks liability when they become due is called ........

• Market risk

• Interest rate risk

• Liquidity risk

Mukul, NRI who has NRO SB account branch was credited with Rs. 5235/- as interest. He request you to transfer this to his NRE account. How will you respond to his request? 

• Credit to Account

• Advise him to obtain RBI approval

• Refuse to credit