DISTANCE EDUCATION
B.B.A. (Banking)/ B.B.A. (Banking) (Lateral) DEGREE
EXAMINATION, MAY 2016.
FOREIGN EXCHANGE AND FINANCING OF FOREIGN
TRADE
(2005 onwards)
Time Three hours Maximum 100 marks
PART A — × 8 40 marks)
Answer any FIVE questions.
1. Narrate the scope of foreign trade.
2. State the importance of balance of payments and its
limitations.
3. What is foreign exchange market? What are its features?
4. What is exchange control? What are its merits and
defects?
5. State the importance of forward markets.
6. Why do exporters require post shipment finance?
7. What is duty exemption passbook?
8. Write a note on ''Import Trust Receipt''.
Sub. Code
25
DE-3352
2
WK 6
PART B — × 15 60 marks)
Answer any FOUR questions.
9. Why do nations trade with each other? What are the
advantages of foreign trade?
10. Define the term balance of payments and enumerate the
components and structure of balance of payments by
giving illustration.
11. Analyse in detail the export procedure and various steps
to be taken including pre-shipment and post shipment
formalities.
12. Explain the role of ECGC in export finance.
13. Discuss in detail the procedure to be followed for making
import of goods as an industrialist.
14. Explain funded and unfunded based services of
commercial banks in exporting goods by the exporters.
15. Analyse the formalities for opening a letter of credit by an
importer, and the procedure to be followed for payment of
import through letter of credit.