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Foreign Exchange Series :: Assignment - 10


1        Statement of outstanding Forward Contract is sent to FD Kolkatta at quarterly intervals on Form _______

a)   106                                          b)         116
c)   126                                          d)         136

2                    Who can open an NRE Account?

a)      Indian nationals and PIO resident abroad or who have gone abroad for business, profession or gainful employment indicating indefinite stay
b)      Students who have gone abroad for studies
c)      Officials of Central/State Govt./PSU serving abroad and persons deputed abroad with international agencies like IMF & WHO etc.
d)     All of above

3                    The balance alongwith interest in NRE account can be repatriated with the permission of __________

a)   RBI                                         b)         Ministry of Finance
c)   Commerce Ministry                d)         No permission required

4                    NRE account can be opened in the form of ________

a)   C/A                                         b)         S/B
c)   TDR                                        d)         All of above

5                    Joint NRE account can be opened, if _____

a)      All the account holders are persons of Indian Nationality
b)      PIO
c)      Either of (a) & (b)
d)     None of above

6                    In a NRE account, rupee income generated in India can not be credited except

a)   Rent                                        b)         Dividend/Interest
c)   Pension                                    d)         All of above

7                    Operation of NRE Account by third party can be permitted by ADs _______

a)      Under a Power of Attorney
b)      Letter of authority in the prescribed format
c)      Either of (a) or (b)
                   None of above

8                    Which of the following credit transactions are permitted into NRE Account?

a)      Transfer from any other NR (E) account of the same account holder
b)      Transfer from FCNB of account holder
c)      Transfer of funds between NRE Accounts of different persons held with same AD or different ADs
d)     All of above

9                         Which of the following debit transactions are permitted from NR (E) account?

a)      Local withdrawal
b)      Transfer to any other NR (E) account of the account holder
c)      Transfer to FCNB account of the account holder
d)     All of above

10                      Which of the following credit transactions are allowed in NR (E) Account?

a)      Proceeds of remittance in freely convertible foreign currency received from abroad, in an approved manner
b)      Proceeds of foreign currency/bank notes/travelers cheques etc. by the account holder during his temporary visit to India 
c)      Interest/dividend earned on Govt. Securities purchased from the funds in NR (E) Account
d)     All of above

11                Which of the following debit transactions, ADs can authorize in NR (E) account?

a)      Permissible investments in shares/security/commercial paper of Indian companies
b)      Purchase of immovable property
c)      Both (a) & (b)
d)     None of above

12                Which of the following debit transactions, ADs can allow subject to report to RBI on Form A 2?

a)      Remittance to the country of residence of account holder
b)      Sale of foreign currency travelers cheques, to the account holder or dependents on production of evidence of travel abroad
c)      Sale of F.C.Notes upto the equivalent of USD 2000
d)     All of above

13                If any of joint account holders of NR (E) account becomes resident, AD will deal with this situation as ______

a)      Delete his name and allow the account to continue as NRE
b)      Redesignate the account as resident
c)      Redesignate the account as RFC
d)     Any of above

14                ADs can grant loan to NRE for the following purpose

a)      Investment other than in Agr. plantation and real estate
b)      Direct investment on non-repatriation basis
c)      Acquisition of house/flats for their residential uses subject to FEMA
d)     All of above

15                ADs can grant temporary overdrafts to the tune of Rs._______in the saving bank account of NRE

a)   50,000                                     b)         1,00,000
c)   2,00,000                                  d)         5,00,000

16                Temporary overdraft along with interest to NRE account holder, should be repaid within _____weeks

a)   1                                              b)         2
c)   3                                              d)         4

17                ADs can not grant _______to NRE account holders

a)   Overdraft                                b)         Demand Loan
c)   Gold Loan                               d)         All of above

18                If a non-resident account holder returns to India for permanent settlement, his account will be designated as _______

a)   Resident                                  b)         RFC
c)   NRO                                       d)         None of above

19                How much average minimum balance should be there in NRE Account?

a)   Rs. 1,000                                 b)         Rs. 5,000
c)   Rs. 10,000                               d)         Rs. 25,000

20                ADs will charge __________rate on the overdraft granted on NRE Saving Bank Account

a)   SBAR + 2%                            b)         SBAR + 3%
c)   SBAR + 4%                            d)         Commercial Rate

                                   KEY TO ASSIGNMENT – 10 (IB) 


            1          b          2          d          3          d          4          d          5          c
            6          d          7          c          8          d          9          d          10        d
            11        c          12        d          13        d          14        d          15        a
            16        b          17        c          18        a          19        a          20        d

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