Statement : Exporters in the capital are alleging that commercial banks are violating a Reserve Bank of India directive to operate a post shipment export credit denominated in foreign currency at international rates from January this year. Courses of Action : I. The officers concerned in the commercial banks are to be suspended. II. The RBI should be asked to stop giving such directives to commercial banks.

Which of the following statements are not correct in relation to pre-shipment credit in foreign currency?
Statement I It is a foreign currency loan available, both, to the importers and exporters.
Statement II It is self-liquidating in nature and can be liquidated by purchasing/discounting of bills.
Statement III Refinance from RBI is available to banks against pre-shipment credit in foreign currency.
Statement IV The interest rare shall not exceed 1.75% above six months, LIBOR for the initial period of one month.

A

Statements I, II and III are not correct

B

Statements I, III and IV are not correct

C

Statements II and IV are not correct

D

Statements II and III are not correct

Which of the following statements are true in context of scheduled banks?
1. All banks which are included in the Second Schedule to the Reserve Bank of India Act, 1934 are Scheduled Banks.
2. These banks comprise Scheduled Commercial Banks and Scheduled Co-operative Banks.
3. Scheduled Commercial Banks in India are categorized into five different groups - SBI, Nationalised Banks, Regional Rural Banks, Foreign Banks and Other Indian Scheduled Commercial Banks in the private sector.
4. Scheduled Co-operative Banks consist of Scheduled State Co-operative Banks and Scheduled Urban Co-operative Banks.

A

1, 2 and 3

B

2, 3 and 4

C

1, 2 and 4

D

1, 2, 3 and 4

Raw material purchased:
1^st January, 600 units @ Rs. 12 per unit
12^th January, 500 units @ Rs. 14 per unit
21^st January, 300 units @ Rs. 13 per unit
Raw material issued for manufacture:
3^rd January 300 units
5^th January 124 units
15^th January 250 units
16^th January 300 units
Raw material returned to stores from manufacturing department on 14^th January, 50 units. The material is issued on First-in-First out method.
The value of material remaining in store on 21^st January will be:

A

5,775

B

6,100

C

6,350

D

6,600

Arrange the following in correct sequence of post shipment procedure in exportation process.
1. C and F agent submits the documents to the exporter.
2. Exporter intimates the importer about the shipment of goods.
3. Submission and negotiation of documents with bank.
4. Bank negotiates these documents to the importer's bank in the manner as specified in the letter of credit.
5. Documents are attested with the bill of exchange
6. The exporter gets immediate payment from his bank after signing letter of indemnity.
7. Importer receives the documentary bill of exchange, he releases the payment.
8. After receiving proceeds the exporter intimates the RBI by recording the facts on duplicate copy of GR.
9. The exporter receives subsidies and concessions if he is eligible.

A

1, 2, 3, 4, 5, 6, 7, 8, 9

B

2, 1, 3, 4, 5, 6, 7, 8, 9

C

9, 1, 2, 3, 4, 5, 6, 7, 8

D

9, 2, 1, 3, 4, 5, 6, 7, 8

The Reserve Bank of India has taken some initiatives to prevent a US type sub-prime Crisis in India. Which of the following is/ are such initiatives? A.Banks are adviced to set up credit counselling centres. B.Banks should stop giving housing loans to big borrowers (Asking for loans of Rs.50 lakhs and above ) C.Banks should not give loans to builders and property dealers/developers

A

Only (A)

B

Only (B)

C

Only (C)

D

All (A), (B), (C)

Arrange the following in correct sequence of pre-shipment export procedure.
1. Approaching foreign buyers
2. Inquiring and making an offer
3. The letter of credit is opened by the importer
4. Exporter obtains ta pre-shipment finance
5. Exporter arranges for the production
6. Exporter then properly packs and marks the goods with details
7. Exporter then contacts the Export Inspection Agency (EIA) to obtain a inspection certificate
8. Exporter then seeks for exemptions under central excise duty
9. Exporter then obtains the insurance cover under the ECGE
10. Exporter appoints a Clearing and Forwarding (C & F)

A

1, 2, 3, 5, 4, 6, 7, 8, 9, 10

B

10, 9, 1, 2, 3, 4, 5, 6, 7, 8

C

1, 2, 3, 4, 5, 6, 7, 8, 9, 10

D

9, 10, 2, 3, 4, 5, 6, 7, 8, 1

Which of the following statement is true?
Statement I Cross rate represents when one unit of foreign currency is represented in the terms of another foreign currency.
Statement II Cross rates are determined only with the help of domestic currency and the foreign currency.

A

Both statements are correct

B

Both statements are incorrect

C

Statement I is correct, but Statement II is incorrect

D

Statement II is correct, but Statement I is incorrect

Consider the following statements relating to Directive Principles of State Policy:
1. The Directive Principles of State Policy do not impose positive obligations on the State
2. So long as there is no law carrying out the Directives neither the State nor the individual can violate any existing law or right under the colour of following the directives
3. Courts are not competent to compel the Govt. to carry out any Directive Principle
Which of the above statements are correct?

A

1, 2 and 3

B

1 and 3

C

1 and 2

D

2 and 3

Reserve Bank of India controls the activities of which of the following banks in India?
1. Commercial banks
2. Cooperative banks
3. Foreign banks
4. Rural banks

A

1, 2 and 3

B

1, 3 and 4

C

2, 3 and 4

D

All of the above

Reserve Bank of India controls the activities of some of the following banks in India:
1. Commercial Banks
2. Cooperative Banks
3. Foreign Banks
4. Rural Banks

A

1, 2 and 3

B

1, 3 and 4

C

2, 3 and 4

D

1, 2, 3 and 4