DAIBB International Trade and Foreign Exchange question July 2018
Ka Set
THE INSTITUTE OF BANKERS, BANGLADESH (IBB)
Banking Diploma Examination, July 2018
DAIBB
International Trade and Foreign Exchange (FE)
Time-3 hours
Full marks-100
Pass marks-50
(N. B. --The figures in the right hand 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 of the following':-(a) Brexit:
(b) Reimbursing bank;
(c) Dhaka Inter-bank Offered Rate (DIBOR);
(d) International Development Association (IDA);
(e) Export Development Fund;
(f) Cross Rate:
(g) Foreign Correspondents.
3. What are the main factors responsible for declining trend of remittances from overseas Bangladesh nationals? Please offer your suggestions to improve the trend.
4. What is standby letter of Credit? Why such credits are used? Distinguish between standby credit and ordinary documentary credit.
5. For some years now the balance of trade of Bangladesh is declining quite fast? What are the causes that can be attributed in this declining trade? How this trend can be reversed?
6. Discuss the causes for transfer of money from Bangladesh to foreign countries. What the authorities can do to steps the leakage of foreign exchange on this account?
7 What is off-shore banking? How does it helps the entrepreneurs in Bangladesh to meet their foreign exchange needs, specially to operate industrial enterprises in the export processing zones?
8. Briefly distinguish between the following terms:
(a) Letter of Credit and Back to Back LC;
(b) FDBP and LDBP;
(c) Current account and Capital account:
(d) Balance of Trade and Balance of Payments;
(e) Airway bill and Air consignment note.
Group B
9. The current market exchange rates are as follows:-
£1 = $ 1.3947-1.3957
$ 1 = Tk. 82.9020 - 82.9820
Please calculate the exchange rate of your bank for buying 120 days pound sterling usance bill assuming the following:
Transit period 10 days
Rate of interest 10% per annum
Profit margin Tk. 0.10 per pound sterling
One year = 360 days
Rough calculations to be shown.
10. You have $1,00,000 at your disposal Based on the following data where would you prefer to invest your fund to maximize your return on the investment for a period of 3 months?
(a) US $ 1= 82.9020 - 82.9820
(b) 3 months forward margin Tk. 0.0153 0.0165 (premium)
(c) Interest rate at Dhaka 10% and 5% per annum in New York. Assume 360 days as one year.
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