Viva Question and Anser for IBBL promotion 1

Foreign Exchange

1.         What do you mean by Letter of Credit?

Ans:    A Letter of Credit is a conditional undertaking of payment from issuing Bank to the beneficiaries.

2.         How many types of Letter of Credits?

Ans:    There are two types of L/C. These are:

            1.         Revocable &

            2.         Irrevocable.

3.         What are the procedures for opening an L/C?

Ans:    The client must have valid IRC, VAT, TIN, PI, Credit Report, Insurance Cover.

4.         What is the abbreviation of UCPDC?

Ans:    Uniform Customs and Practices for Documentary Credit.

5.         What are the components for operating F.Ex. in Bangladesh?

Ans:    1.         Foreign Exchange Regulation Act, 1947.

            2.         Guidelines for Foreign Exchange transaction.

            3.         Import & export policy order.

            4.         Foreign Exchange circular

            5.         Public Notice.

6.         What are the responsibilities of L/C Advising Bank?

Ans:    To authenticate the L/C and advice to the beneficiary with reasonable time.

7.         What are the functions of reimbursing Bank?

Ans:    To make payment to the claiming per instruction of issuing Bank.

8.         What is the importance to incorporate country of origin in the L/C?

Ans:    1.         To make sure proper utilization of F.C.

            2.         To know the bilateral trade gap between the countries.

9.         What is the meaning of SWIFT?

Ans:    Society for World Wide Inter-Bank Financial Telecommunication.

10.       How many articles in UCPDC-500?

Ans:    There are 49 articles in UCPDC-500.

11.       Who can issue Bill of Leading?

Ans:    Either master or named agent of shipping company.

12.       What are checking point of B/L?

Ans:    1.         Shipped on Board, 2. Shipment date.

            3.         Port of loading, 4. Port of destination.

            5.         Consignee & notify party, 6. Brief description of goods.

            7.         Incoterm, 8. Shipper.

13.       How many types of documents?

Ans:    There are 4 types of documents.

            1.         Commercial, 2. Transport, 3. Insurance, 4. Additional/others.

14.       Is any date require in B/L?

Ans:    Yes, a B/L must be date to indentify the date of shipment.

15.       Is any signature require in commercial invoices?

Ans:    If it is stipulated in the credit then it is required.

16.       How many parties of an L/C?

Ans:    Basically two parties:

            1.         Issuing Bank, 2. Beneficiary negotiating Bank.

17.       What are the checking point of an export L/C?

Ans:    1.         Date of shipment, 2. Date of expiring, 3. L/C issuing Bank,

            4. B/L clause, 5. Reimbursement clause, 6. Whether L/C is revocable & irrevocable & 7. Go through line by line of the L/C.

18.       What are the steps before opening of BB L/C?

Ans:    The client must have valid IRC, ERC, export license, banded ware house facility.

            1.         Checking the export L/C line by line.

            2.         Satisfactory Credit Report from buyer & supplier.

            3.         BB L/C value normally not exceeded.

20.       Is it necessary to marked lien in Export L/C?

Ans:    Yes, it is necessary to avoid fraudulent activities.

21.       How you can purchase a foreign or local documents against export?

Ans:    The client must be a limit holder. If the documents ----------------------.

24.       What do you understand about dealing room operation?

Ans:   

25.       What are the money market products?

Ans:    1.         Commercial paper

            2.         T-bill

26.       What do you mean by forward booking?

Ans:    Fixing up rate spot and delivery of currency at future etc.