DISTANCE EDUCATION
B.B.A. (Banking)/B.B.A. (Banking) (Lateral) DEGREE
EXAMINATION, MAY 2017.
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. Explain the principles underlying balance of payments
accounting.
2. What is the disadvantage of bill of lading?
3. Differentiate between hedging and speculations.
4. How will a banker deal with documents presented under
the letter of credit with discrepancies?
5. State the different types of finance facilities available
from commercial banks to exporters in India.
6. Explain the various types of post shipment finance.
7. Explain the promotional and advisory roles played by
Exim Bank.
8. What are the exchange control provisions for payment for
imports in to India?
Sub. Code
25
DE-165
2
wk12
PART B — 15 60 marks)
Answer any FOUR questions.
9. Bring out the significance of balance of payment
disequilibrium.
10. State the major factors that influence the exchange rate
of a currency.
11. Explain various functions of the foreign exchange
department of a commercial bank.
12. What are the purposes for which banks issue guarantees
on behalf of exporters? What precautions they follow in
executing such guarantee?
13. Describe the salient features of the standard policies
issued by ECGC to the exporters.
14. Write short notes on
Nastro and Vastro accounts
Opening of letter of credit.
15. Explain the regulations relating to trade credit for
imports.