<<123456789101112131415161718192021>> 1. What is the maximum amount allowed under the automatic route for Trade Credits (TC) per import transaction for oil/gas refining & marketing, airline, and shipping companies?Up to USD 50 millionUp to USD 100 millionUp to USD 150 millionUp to USD 200 millionQuestion 1 of 21 2. What is the maximum period of Trade Credits (TC) for capital goods imports?Up to 1 yearUp to 2 yearsUp to 3 yearsUp to 5 yearsQuestion 2 of 21 3. Which of the following is NOT a benefit of Trade Credit?No interest payableEasy and simple processHigh volume of trade creditsLengthy repayment periodQuestion 3 of 21 4. What is the role of Authorized Dealer (AD) banks regarding Trade Credits (TC)?They are responsible for approving TC applications.They primarily ensure adherence to TC policy lies with the importer.They provide financial assistance for TCs.They are responsible for reporting TC transactions to RBI.Question 4 of 21 5. What is the maximum period of Trade Credits (TC) for non-capital goods imports?Up to 1 year or the operating cycle whichever is lessUp to 2 years or the operating cycle whichever is lessUp to 3 years or the operating cycle whichever is lessUp to 5 years or the operating cycle whichever is lessQuestion 5 of 21 6. Which of the following changes in currency for Trade Credits (TC) is NOT permitted?Change from one freely convertible foreign currency to anotherChange from INR to any freely convertible foreign currencyChange from one freely convertible foreign currency to INRChange from INR to another non-convertible currencyQuestion 6 of 21 7. What type of borrowers are eligible for Trade Credits (TC)?Only non-residentsOnly exportersOnly residents acting as importersOnly banks and financial institutionsQuestion 7 of 21 8. What is External Commercial Borrowings (ECBs)?Loans availed by Indian entities from domestic lenders.Loans availed by Indian entities from non-resident lenders.Loans availed by non-resident entities from Indian lenders.Loans availed by foreign commercial banks from Indian entities.Question 8 of 21 9. Which of the following is NOT considered as part of External Commercial Borrowings (ECBs)?Buyers' creditSuppliers' creditEquity investmentsSecuritized instruments such as Floating Rate Notes and Fixed Rate BondsQuestion 9 of 21 10. What is the maximum borrowing limit under the automatic route for External Commercial Borrowings (ECBs) per financial year?$500 million$750 million$1 billion$2 billionQuestion 10 of 21 11. Which entities have been newly included as beneficiaries eligible for External Commercial Borrowings (ECBs) under the new framework?Banks and financial institutions onlyOnly entities involved in manufacturing activitiesPort trusts, units in special economic zones, micro lenders, not-for-profit companies, registered societies/trusts/cooperatives, and non-governmental organizationsOnly entities involved in export-import activitiesQuestion 11 of 21 12. What is the minimum average maturity period required for External Commercial Borrowings (ECBs) under the new framework?1 year3 years5 years10 yearsQuestion 12 of 21 13. Which of the following activities is included in the negative list for the utilization of ECB proceeds?Investment in capital marketReal estate activitiesRepayment of Rupee loansAll of the aboveQuestion 13 of 21 14. What change did the RBI make in November 2018 to make the ECB route attractive to firms?Increased the minimum average maturity period to 5 yearsEased Hedging Norms for External Commercial BorrowingsImposed stricter regulations on borrowing from foreign equity holdersReduced the maximum borrowing limitQuestion 14 of 21 15. How are Startups permitted to raise External Commercial Borrowings (ECB) under the ECB facility?Only through the approval routeOnly through the automatic routeBoth through the automatic route and the approval routeOnly through direct government fundingQuestion 15 of 21 16. Who examines the cases for ECB under the automatic route for Startups?Reserve Bank of IndiaAuthorised Dealer Category-II (AD Category-II) banksAuthorised Dealer Category-I (AD Category-I) banksMinistry of FinanceQuestion 16 of 21 17. What is the minimum average maturity period for ECB raised by Startups?1 year2 years3 years5 yearsQuestion 17 of 21 18. Who can be a recognized lender/investor for ECBs raised by Startups?Any resident of IndiaAny individual or institutionAny resident of a FATF compliant countryOnly government-owned financial institutionsQuestion 18 of 21 19. In what forms can the borrowing be for Startups under the ECB facility?Loans onlyNon-convertible preference shares onlyOptionally convertible preference shares onlyLoans or non-convertible, optionally convertible, or partially convertible preference sharesQuestion 19 of 21 20. What is the maximum borrowing limit per financial year for Startups under the ECB facility?USD 1 millionUSD 2 millionUSD 3 millionUSD 5 millionQuestion 20 of 21 21. How is the all-in-cost of ECB for Startups determined?As per the fixed rate set by the Reserve Bank of IndiaAs mutually agreed between the borrower and the lenderBased on the prevailing market ratesAs per the guidelines of the Ministry of FinanceQuestion 21 of 21 Loading...
