12 Questions
What is the main difference between High Seas Sales (HSS) and Merchanting Trade Transaction (MTT)?
HSS involves selling goods before they arrive at the destination port, while MTT involves transporting goods between foreign countries without entering the Domestic Tariff Area.
What is the purpose of FEMA Declaration cum Undertaking under sec.10 (5), Chapter III of FEMA 1999?
To state the purpose of the transaction
Which document is issued by the Customs Department as evidence of import?
Bill of Entry (BoE)
What documents are classified as risk mitigating documents in trade finance?
Insurance policies/certificates
In a merchanting trade transaction, where are the products transported from and to?
Transported from one foreign country to another
What type of transaction involves selling products to a foreign country?
Export
What is the primary purpose of trade finance?
To facilitate international trade transactions
Which of the following is NOT a form of international trade mentioned in the text?
Domestic Sales
How does international trade contribute to economic growth and technological progress?
By expanding markets for domestic units through exchange of goods and services
What role do banks play in international trade finance?
Providing working capital limits to exporters and importers
Which regulatory body monitors international trade transactions?
World Trade Organization (WTO)
What do Fund Based and Non-Fund Based credit limits provided by banks help with?
Facilitating international trade and commerce
This quiz covers an introduction to trade finance, the role of WTO and the world trade scenario, including regulatory frameworks such as FEMA, important RBI guidelines, and guidelines on EDPMS/IDPMS. It also includes topics like trade finance definition, types of international trade, and how international trade facilitates countries to exchange goods and services.
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