BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Traveler’s Cheque
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Letters of Credit
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Bill of Exchange expressed or drawn in Indian Currency
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All of the above
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Detailed explanation-1: -According to FEMA, foreign exchange includes drafts drawn by banks outside India and payable in Indian currency but it does not include any drafts drawn by banks outside India and payable in foreign currency.
Detailed explanation-2: -FERA is an act to regulate dealings in foreign exchange and foreign securities with the objective of conservation of foreign exchange resources of India and its proper utilization in the economic development of India.
Detailed explanation-3: -The Foreign Exchange Regulation Act (FERA) was legislation passed in India in 1973 that imposed strict regulations on certain kinds of payments, the dealings in foreign exchange (forex) and securities and the transactions which had an indirect impact on the foreign exchange and the import and export of currency.
Detailed explanation-4: -Types of Foreign Exchange Risk. Fundamentally, there are three types of foreign exchange exposure companies face: transaction exposure, translation exposure, and economic (or operating) exposure.
Detailed explanation-5: -FERA stands for Foreign Exchange Regulation Act, 1973.