International Trade & Foreign Exchange-Banking Diploma Question

International Trade & Foreign Exchange-Banking Diploma Question

Spread the love

International Trade & Foreign Exchange-Banking Diploma Question

Banking Diploma Examination, July, 2019
International Trade & Foreign Exchange (F E)
Time—3 hours

Full marks—100
Pass marks—5O
[The figures in the right margin indicate full marks. Answer any four questions from group A and one question from group B]

Group A

  1. Write short notes on any five of the following:       4×5= 20

(a) Quasi negotiable instruments
(b) Loan against imported merchandise (LIM)
(c) Bill of exchange
(d) European Union
(e) International Monetary Fund
(f) Convertibility of Taka
(g) Floating Exchange rate

  1. Describe briefly the roles of various parties usually involved in a letter of credit. Explain the term “Banks deal in documents and not in goods” as per Uniform customs and practices for Documentary credits.   12+8 = 20
  2. What are the factors that influence the exchange rate of a currency? Give your opinion whether the exchange rate of Bangladesh taka needs to be revised to correct the balance of payments deficits witnessed during the last few years.                                                             12+8 = 20
  3. Describe briefly the procedure employed to ensure that the goods are actually imported into Bangladesh against remittance of foreign exchange made from the country. What are your suggestions to improve the system by using the modern Information Technology?

  1. Briefly describe the types of credit facilities offered by the banks for financing imports into Bangladesh. What are the precautions to be taken by the banks to avert the risks associated with import financing?  Marks 12+8=20
  2. What is meant by generalised system of preference? Describe the reasons for which the USA has withheld this facility for Bangladesh. Marks 12+8=20
  3. What is Export Development Fund? What are the criteria for lending money from this Fund? Marks 10+10 =20
  4. Describe the ways black money in transferred from Bangladesh. What would be your suggestions to check the illegal flow of money from Bangladesh? Marks 10+10=20

Group B

A foreign national has presented a cheque for $25,000 drawn  on a bank in New York. Using the following data please calculate the exchange rate of dollar and the amount to be paid to foreign national in taka.                                       Marks 20
(a) US S 1=Tk. 82.2505-83.2505
(b) Transit period 15 days
(c) Interest rate 10% per annum
(d) Overhead cost per US dollar Tk. 0.2500
(e) Postal charges per dollar Tk.0.1200

  1. Please workout the buying rate of 180 days export bill in pound sterling by using the following data : Marks 20

(a) € 1= US$ 1.3050—1.360
US$ 1 -TK. 83.1080—83.2080
(b) Transit period 10 days
(d) Rate of interest 9% per annum
(d) Profit margin T k. 0.10 per pound sterling (Assume a year as 360 days)
Rough calculations must be shown.