BANK MCQ Quiz Hub

1. Incoterms cover
trade in intangibles
ownership and transfer rights
contracts of carriage
rights and obligations of parties to contract of sales

2. Which of the following term cannot be used for transportation of goods by sea?
CFR.
DDP
DES
DEQ

3. Which of the following term cannot be used for transportation of goods by sea?
CFR.
DDP
DES
DEQ

4. Which of the following term cannot be used for transportation of goods by sea?
CFR.
DDP
DES
DEQ

5. The incoterm providing least responsibility to seller is
EXW.
DDP
FOB
CIF

6. The group of incoterms under which the seller’s responsibility is to obtain freight paid transport document for the main carriage is
E terms
C terms.
D terms
F terms.

7. The incoterm should indicate the place of shipment in case of
F terms
E terms.
C terms.
D terms.

8. Incoterm is specific about the responsibility for marine insurance in case of
FOB and EXW
FOB and CIF
CIF and CIP.
CPT and DDP.

9. The group of terms arranged in order of increasing responsibility of exporter is.
. C,D,E and F terms.
D,E,F and C terms.
E,F,C and D terms.
F,C,E and D terms.

10. The price quoted by the seller for the product
A. will vary depending upon the incoterm chosen.
irrespective of the incoterm.
will be the base price; the effect of incoterm to be added later
will include only cost.

11. Adoption of incoterm is
compulsory for all international contracts
compulsory for all letter of credit transactions.
optional for the parties to the contract
mandatory for transactions with Europe.

12. Which of the following term cannot be used for transportation of goods by Road or Air?
FAS.
DDP
EXW
CIP.

13. Packing credit is
an advance made for packing goods for export.
pre-shipment finance for export.
a priority sector advance.
advance for importer.

14. The amount of packing credit should not normally exceed
. the local cost of manufacture for the exporter.
FOB value of the export contract.
CIF value of the export contract.
D. the cost of manufacture or FOB value of the export contract whichever is les

15. Which of the following person is not eligible for packing credit?
a .merchant exporter.
a person making deemed exports.
sub-suppliers to manufacture exporter
supplier to sub-supplier to manufacture exporter.

16. The running account facility for packing credit is available for
A. status holders only.
export for specified goods.
exporters with good track record
exporters with orders above Rs. 100 crores.

17. The advantage to the exporter of running account facility of packing credit is
. production of letter of credit or firm order is completely waive
the period of facility need not be adhered to.
production of letter credit on firm order is waived immediately they must be produced within a reasonable time.
. the rate of interest is low.

18. The exemption from the condition credit should not exceed the domestic cost of production is not waived for
commodity eligible for duty drawback
commodity imported under advance licence
HPS groundnuts
agro-based productions like tobacco.

19. The substitution of commodity/fresh export of adjustment of packing credit is not available for
advance against sensitive commodities.
transactions of sister/associate/group concerns.
. exports availing running account facility.
exports with imports.

20. Normally the maximum period for which packing credit advances are made is
90 days.
135 days
180 days
360 days.

21. A pre-shipment advance is not expected to be adjusted by
proceeds of export bill
export incentives
post-shipment finance
local funds.

22. A packing credit was granted against an export order but the export could not take place
It should be reported to the RBI
The exporter should be blacklist
Claim should be preferred with ECG
Interest at domestic rate should be charged on the advance from the date of advance

23. For direct export the packing credit should normally be granted only against
a letter of credit.
firm order.
export licence
a letter of credit or firm order.

24. For packing credit in rupees the interest of period up to 180 days is chargeable at
BPLR minus 2.5%.
BPLR minus 3%.
not exceeding BPLR minus 2.5%.
not less than BPLR minus 2.5%.

25. Pre-shipment credit in foreign currency is available for a period of
maximum 180 days.
minimum 180 days
maximum 270 days
maximum 360 days.

26. Pre-shipment credit in foreign currency can be availed in
US Dolor only.
the currency of export only.
the currency of import only.
any permitted currency.

27. Advising of letter of credit will be done by the bank
only to its customers
to any person provided the letter of the credit is issued by its correspondent bank.
free of charge to its customers and for a cost to others
to any beneficiary and from any issuing bank.

28. The following is not a post-shipment advance
negotiation of bill under letter of credit
purchase of foreign bill.
advance against foreign bill for collection
packing credit.

29. A bill drawn under a letter of credit contains discrepancies
the bank should refuse to negotiate documents
take the bill on a collection basis only.
must negotiate irrespective of discrepancies
may purchase it or take it for collection, but should not refuse to handle the bill.

30. If an export bill which was purchased /negotiated is not realized within reasonable time from the due date the bank shouldis.
reserve the bill from the export bill purchase portfolio
make a claim with ECGC
report to RBI.
take further bills from the exporter only on collection bas

31. The following is a must for an exporter
GR form.
EP form
PP form
GRX form.

32. Duty drawback is the refund of duty chargeable on
Imported material
Exported material
Damaged material.
Mortgaged material

33. Availing post-shipment credit in foreign currency is compulsory for
exporters who have not availed packing credit.
all exporters who have availed packing credit.
exporters who have availed pre-shipment credit in foreign currency
exporters who have availed credit from banks.

34. Post-shipment credit in foreign currency can be availed by
use of on-shore foreign currency funds
banks raising foreign currency funds abroad
exporters arranging funds abroad
any of the above methods.

35. Advance remittance from importer can be accepted by an exporter in India provided
the advance does not carry interest payment.
shipment will be made only after one year from the date of receipt of advance.
advance does not exceed 25% of export value
rate of interest,if payable, does not exceed Libor plus 1%.

36. A bank may refuse to accept an export bill for collection
when the customer has sufficient limits under bill discounting facility. B. D.
when the documents have discrepancies when compared to letter of credit requirements.
when the documents are received from a non-customer
when the documents are received from a customer.

37. If the importer refuses to accept the bill drawn on him the exporter
should reimport the goods.
must find an alternate buyer.
may reimport or sell to an alternate buyer depending upon commercial expediency
sue the importer.

38. If export cargo is lost in transit, the exporter should
claim under marine insurance.
claim with ECGC
seek write off of post-shipment credit.
seek refund of customs duty.

39. Pre-shipment rupee credit from Exim bank is available for
period up to 180 days.
period beyond 180 days
turnkey projects only
foreign currency components only.

40. For export-oriented units, Exim bank finances
term loans only.
both working capital and term loans
term loans, working capital and long term working capital.
for investment from overseas.

41. Which of the following is not a common feature of direct lending by Exim bank?
They are for medium or long term.
The size of the loan is high.
Security is not insisted upon
Interest rates are relatively low.

42. Bid Bond issued as part of
supply bidding process
Turnkey project
Post-award clearance
Deferred payment

43. Exim bank lending to foreign governments take the form of
soft loans.
commercial loans
lines of credit.
relending facility.

44. The facility that is available to commercial banks in India from Exim bank is
refinancing of export credit.
export bill re-discounting
syndication of export credit risks.
All the above

45. Exim bank issues guarantees on behalf of
all exporters from India.
exporters of construction and turnkey projects
banks in India.
Govt. of India.

46. Exim bank issues guarantees to commercial for
all export advances
all export advances repayable beyond one year
post-shipment suppliers credit from one year to three years
. loans with refinance from Exim bank.

47. Export factoring is available for
short term exports.
medium-term exports.
all exports
export under consignment basis.

48. . Which of the following service is not provided by an export factor?
invoice discounting.
providing credit information
maintenance of debtors account.
None of the above

49. Export factoring encourages the following method of payment
open account system.
letter of credit method
documentary bill.
advance payment.

50. Export factoring encourages the following method of payment
open account system.
letter of credit method
documentary bill.
advance payment.

51. Factoring refers to.
discounting of any export bill.
. discounting of medium-term export bill.
writing off unrealized export bill.
waiver of charges on export bills.

52. Under supplier’s credit for deferred payment exports scheme of Exim bank
pre-shipment finance is available for periods beyond 180 days
post-shipment finance is available in Indian rupees for deferred payment exports.
post-shipment finance is available in foreign currency for deferred payment exports.
post-shipment finance is available in Indian rupees or foreign currency for deferred payment exports.

53. Which of the following statements relating to consultancy and technology services finance programme of Exim bank is wrong?
The exporter is expected to get an advance payment of 25%
The export should be covered byECGC policy.
Minimum period of the loan is seven years
They should be secured by a government guarantee or letter of credit

54. Pre-shipment credit is available from Exim bank is available for
period up to 180 days.
period beyond 180 days.
turnkey projects only.
foreign currency component only.

55. Extension period of credit for export
180 days
220days
90days
270days

56. The standard policy of ECGC covers the risk of
buyers failure to obtain import license
insolvency of the collecting bank
cancellation of the import licence in the buyers country.
all the above.

57. The standard policy of ECGC is issued
90% for political risk and 60% for commercial risk.
90% for both political and commercial risk.
60% for political risk and 90% for commercial risk
60% for both political and commercial risk.

58. The ERIC was renamed as
. ECPC
ECGC
EACP
ECPG

59. The small exporter’s policy of ECGC is issued to
any exporter in the SSI category
any exporter who is exempt from excise duty
an exporter with an expected turnover of Rs. 1crore.
an exporter with an anticipated turnover in the next twelve months not exceeding of Rs. 50 lakhs.

60. Which of the following information about the small exporter’s policy is wrong?
Risk coverage is 95% for commercial risks and 100% for political risk.
The policy issued for 12 months
The premium payable is less than the standard policy
None of the above.

61. The maturity factoring facility of ECGC protects the exporters against
failure of the buyer to obtain authority as per the regulations of his country.
risk normally covered by General Insurance.
failure of the buyer to pay.
none of the above.

62. Cover under the guarantee of ECGC is available to
the bank against the default of the importer.
the bank against the default of the exporter.
the bank against the default of the importer and exporter.
the exporter against the default of the importer.

63. Pre-shipment advances granted in excess of FOB value of contract against duty drawback can be covered under
packing credit guarantee
whole turnover packing credit guarantee.
export production finance guarantee.
export finance guarantee.

64. Export finance guarantee of ECGC protects
banks providing foreign currency loans to correspondents.
banks providing foreign currency loans to contractors.
overseas branches financing Indian exports
overseas branches financing Indian imports.

65. Pre-shipment advances against export incentives can be covered under
post-shipment export credit guarantee
whole turnover post-shipment credit guarantee
export production finance guarantee.
export finance guarantee.

66. The rate of premium payable to ECGC for eligible advances covered under whole turnover packing credit guarantee is
6 paise per Rs.100 p. on daily average products
6 paise per Rs.100 p.m. on daily average products.
6 paise per Rs.100 p. on monthly average products.
6 paise per Rs.100 p. on yearly average products.

67. The risk to a bank in confirming a letter of credit is covered by ECGC under
export performance guarantee
transfer guarantee.
export finance guarantee.
import and export finance guarantee.

68. Under exchange fluctuation risk cover, the ECGC provides cover
to the exporters on deferred payment terms against exchange fluctuations.
to banks for advances made in foreign currency to importers abroad
to banks against advances made deferred payment export.
to banks for advances made in foreign currency to importers and exporters abroad

69. Working group consist of
RBI
EXIM Bank and ECGC
RBI, EXIM Bank and ECGC
RBI and ECGC

70. How many percentage of contract value the exporter can receive as an advance
. 25%
50%
15%
35%

71. Commodity Boards do not differ from Export Promotion Councils in respect of the following
Commodity Boards deal with problems relating to production also.
Commodity Board is a statutory body.
Commodity Board covers a specific product.
None of the above

72. A confirmed letter of credit is one
Confirmed by bank in the exporters country
. Confirmed by the importers to be correct
confirmed by the exporter that he agrees to the conditions
confirmed to be authentic

73. The institution specializing in organizing fairs and exhibitions is
Indian Institute of Foreign Trade.
Federation of Indian Export Organization.
Indian trade Promotion Organization.
None of the above

74. Funds allocated under ASIDE should be used for
developing infrastructure such as roads.
creation of free trade zone.
advertisements abroad
conducting trade tours.

75. Market Access Initiative is not available for
A. Conducting market studies.
participation in international trade fairs.
testing charges for engineering products.
None of the above

76. Duty drawback is available for
import duty on imported components.
central excess on indigenous companies.
both (a ) and (b) above.
(c) above and VAT.

77. Excise duty exemption on exports is available for duty paid on
finished products only
components only
finished products and components.
imported item.

78. Submission to the bank of the bill of entry as evidence of import is mandatory where the value of import exceeds
USD 10,000.
USD 25,000
USD 1,00,000.
USD 1,00,000 in a year.

79. A bank receives for collection a bill drawn on an importer who is not it’s customer, for retirement of the bill, the bank
can accept payment in cash
should forward the bill to the importer’s bank for delivery of documents
can accept cheque drawn by the importer on his bank.
can accept cheque drawn in the favor of the importer duly endorsed in bank’s favor.

80. The currency in which payment for import is made depends upon
The country from which the goods are shipped
The country of origin of goods.
The arrangement between the buyer and seller.
The bank which the importer’s bank has correspondent relationship.