ACU Accounts and Export Payments Quiz
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Questions and Answers

What is the purpose of the ACU mechanism mentioned in the text?

  • To provide guidelines for issuing account statements for ACU accounts
  • To facilitate foreign currency payments between participating countries (correct)
  • To limit the overall exposure of Authorized Dealers in foreign currency accounts
  • To standardize the process of opening and amending Letters of Credit

What is the process when an Authorized Dealer needs to fund its ACUD/ACUY/ACUE Nostro account?

  • The Authorized Dealer requests the State Bank of Pakistan to transfer the required funds from its own account to the correspondent bank in the other country
  • The Authorized Dealer surrenders the equivalent amount in USD/JPY/EUR to the State Bank of Pakistan, which then advises the Central Bank of the other country to make the funds available (correct)
  • The Authorized Dealer directly transfers the required USD/JPY/EUR amount to the correspondent bank in the other participating country
  • The Authorized Dealer issues a Letter of Credit in PKR to the State Bank of Pakistan, which then arranges the foreign currency transfer

What is the role of the General Manager - ACU mentioned in the text?

  • To provide guidelines and regulations for the ACU clearing arrangement
  • To maintain the ACU Nostro accounts on behalf of the Authorized Dealers
  • To approve and facilitate the opening and amendment of Letters of Credit under the ACU mechanism
  • To credit the account of the Central Bank of the other country by debiting SBP's account (correct)

What is the purpose of the overall exposure limits of ADs mentioned for the ACUD, ACUY & ACUE accounts?

<p>To align the foreign currency exposure of Authorized Dealers with the regulations set by the State Bank of Pakistan (A)</p> Signup and view all the answers

What is the requirement for Authorized Dealers regarding the issuance of ACU account statements according to the text?

<p>Authorized Dealers must issue ACU account statements on a monthly basis, as well as whenever a transaction occurs (C)</p> Signup and view all the answers

What is the main difference between the Nostro accounts maintained by banks under the ACU mechanism compared to regular Nostro accounts?

<p>Nostro accounts under the ACU mechanism are maintained in 'ACU Dollar', 'ACU Yen' or 'ACU Euro', rather than in the local currencies (B)</p> Signup and view all the answers

What is the main benefit of the ACU mechanism mentioned in the text?

<p>It enables the settlement of payments between banks in participating countries without the need for USD/JPY/EUR transfers (D)</p> Signup and view all the answers

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