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Hello friends in this lecture we're arguing to discuss mock test with explanation relating to bank financial management of CIA we have certain questions we will discuss those questions with explanation first question as per Foreign ExchangeManagement Act in short called FEMAwhich of the following is not included din the term foreign exchange so in the term foreign exchange which of the following is not included a deposit in foreign currency be balance payable in foreign currency see demand draftstraveler'’s checks payable in foreign currency demand drafts traveler's checks drawn in India and payable in home currency friends what is payable in home currency and what is drawn in India income currency so any instrument which is drawn in home currency and payable inform currency is not part of foreign exchange hence our option is d as perfect the demand drafts traveler's checks drawn and payable in a home currency Carnot included in the term foreign exchange, but deposits credit balance payable in foreign currency diditraveler checks l see bill change Express or drawn in fun crunchy Indian currency or foreign currency but payable in foreign currency are part of foreign exchange so any instrument which may be drawn or which may be available in the form of foreign currency or any instrument which is drawn in Indian currency but payable in foreign exchange foreign currency is part of foreign exchange US dollar spot rate is forty-four point five zero and two months forward rate is forty-four point seven zero in this case the foreign currency is at a premium and home currency is ATA discount that is first option foreign currency as well as home currency is at a premium farm currency as well as home currency is at a discount home currency is at premium and foreign currency is at discount in this case the spot rate is forty-four and future rate is forty-four point seven zero this shows that foreign currency is available in future at a price higher than the current price this means the foreign currency is at premium when foreign currency is at premium automatically the home currency will be at a discount hence our answer option is a when foreign currency is available at a higher rate in future ITIS at a premium and home currency is ATA discount when future rate of exchange of foreign currency is lower it is at discount and home currency in that situation will be at a premium rupee cost of a foreign currency is known Incas of option a fixed rates direct rates floating rates indirect rates in case of direct rate the rupee cost of foreign currency is known in case of indirect rate the foreign currency cost of rupees known our question is rupee cost of foreign currency, so this is known in case of direct rates hence our answer ISB so rupee cost of foreign currency indirectly known in case of direct rate for example one US dollar equal to forty-five thirty the rupee cost of this fun currency is known in case of indirect case rates the position is entirely...
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