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BFM target exam Topic: Mod A –Exchange Rate
Spot Rate - 75.6000/5500
Forward 1M=3500/3000 2M=5500/5000
3M=8500/9000
Transit Period - 10 days.
Exchange Margin - 0.15%.
Find Bill Buying Rate
BFM target exam Topic: Mod A –Exchange Rate
Spot Rate - 75.6000/5500
Forward 1M=3500/3000 2M=5500/5000
3M=8500/9000
Transit Period - 10 days.
Exchange Margin - 0.15%.
Find Bill Buying Rate
BFM target exam Topic: Mod A –Exchange Rate
Retirement of Import bill for GBP 50,000.00 by TT
Margin 0.20%, ignore cash discount/premium,
GBP/USD 1.3955/75, USD/INR 55.06/18.
Compute Rate for Customer
BFM target exam Topic: Mod A –Exchange Rate
Retirement of Export bill for GBP 50,000.00 by TT Margin
0.20%, ignore cash discount/premium,
GBP/USD 1.3955/75, USD/INR 55.06/18.
Compute Rate for Customer
BFM target exam Topic: Mod A –Exchange Rate
Retirement of Export bill for GBP 50,000.00 by TT Margin
0.20%, ignore cash discount/premium,
GBP/USD 1.3955/75, USD/INR 55.06/18.
Compute Rate for Customer
BFM target exam Topic: Mod A –Exchange Rate
BFM target exam Topic: Mod A –Exchange Rate
BFM target exam Topic: Mod A –Exchange Rate
BFM target exam Topic: Mod A –Exchange Rate
On 15th Dec, Customer presented a sight bill for USD 100000 for Purchase
under LC. Transit period is 20 days and Exchange margin is 0.15%. The spot
rate is 34.80/90.
Forward differentials: Jan - .65/.57 Feb - 1.00/.97 Mar - 1.40/1.37
How much amount will be credited to the account of the Exporter?
a. 28.0988
b. 34.0988
c. 40.0988
d. 44.0988 b
Solution : Bill Buying rate will be applied. Spot Rate = 34.80 Less discount .65
= 34.15 Less Exchange Margin O.15% i.e. .0512
=34.80-0.60-0.0512 =34.0988
BFM target exam Topic: Mod A –Exchange Rate
On 15th Dec, Customer presented a sight bill for USD 100000 for Purchase
under LC. Transit period is 20 days and Exchange margin is 0.15%. The spot
rate is 34.80/90.
Forward differentials: Jan - .65/.57 Feb - 1.00/.97 Mar - 1.40/1.37
How much amount will be credited to the account of the Exporter?
a. 28.0988
b. 34.0988
c. 40.0988
d. 44.0988 b
Solution : Bill Buying rate will be applied. Spot Rate = 34.80 Less discount .65
= 34.15 Less Exchange Margin O.15% i.e. .0512
=34.80-0.60-0.0512 =34.0988
BFM target exam Topic: Mod A –Exchange Rate
BFM target exam Topic: Mod A –Exchange Rate
BFM target exam Topic: Mod A –Exchange Rate
BFM target exam Topic: Mod A –Exchange Rate
BFM target exam Topic: Mod A –Exchange Rate
The forex dealer of KBC Bank sold GBP 20000 in the interbank market
@83.7500 in cover of import. TT recorded by one of their branches.
Subsequently it was detected that the transaction had erroneously reported
twice by the branch and hence the sale had to be cancelled. The interest rate
at the time of cancellation was 1GBP=83.6875 /83.7275.
ONE month forward rate: 1 GBP =83.7300/83.7700 Brokerage of Rs. 1000 for
each sale as well as purchase transaction is payable.
What is the amount received in the original sale transaction by the dealer?
a. Rs 16,75,400
b. Rs 16,73,750
c. Rs 3352000
d. Rs 16,74,550
Ans: 20000 x 83.75 x 2 + 2000 = 3352000
BFM target exam Topic: Mod A –Exchange Rate
BFM target exam Topic: Mod A –Exchange Rate
Which rate would be applied for cancellation?
a. Bill Selling
b. Bill buying
c. TT selling
d. TT Buying
Ans:TT Buying
How much has to be paid to the dealer at the time of cancellation?
a. Rs 16,74,550
b. Rs 16,74,600
c. Rs 16,72,750
d. Rs 16,73,750
Ans: 20000*83.6875 = 1673750 - 1000 = 1672750 (Buy – substract commission)
BFM target exam Topic: Mod A –Exchange Rate
How much is the loss/gain on cancellation of GBP sale by the dealer?
a. Rs 1550 loss
b. Rs 1550 Gain
c. Rs 1000 Gain
d. No profit no loss
Ans: In first transaction dealer receives Rs. 1676000. In second transaction
dealer pays Rs. 1672750.00 Hence dealer gains Rs. 3250.00
BFM target exam Topic: Mod A –Exchange Rate
Inflow of USD 100,000.00 by TT for credit to your exporter's account, being
advance payment for exports (credit received in nostro statement received
from New York correspondent). What rate you will take to quote to the
customer, if the market is 48.09/11? 1 month = 35/40, 2m = 55/60
Answer