The banking diploma has become an integral step to building a successful career in the banking industry in Bangladesh. So it is important to have regular study on different subjects of Banking Diploma. It will become easy to pass the exam if you follow the previous Banking Diploma Questions.

JAIBB Banking Diploma Questions

We'll include all the questions later very soon.

AIBB Banking Diploma Questions in 96th Banking Professional Examination-2023

We have provided the following questions of AIBB for you. Trade Finance and Foreign Exchange Agriculture & Microfinance

Trade Finance and Foreign Exchange

[Answer any four questions from group B.] Group A

1. Write short notes on any five of the following:

(a) Bill of Exchange (b) Lodgment of Import Bill (c) Transport Documents in LC (d) Financial Messaging System (e) Standby Letter of Credit (f) Balance of Payments (g) UPAS L/C  

2. Distinguish between any four of the following:

(a) OD Sight and BC Selling Rates

1. b) Spot and Forward Exchange Rates

(c) Nostro and Vostro Accounts (d) LIM and LTR

1. e) Pre-Shipment Finance and Post Import Finance

(f) Currency Appreciation and Depreciation

3. (a) Describe the settlement methods for export and import:

(i) Letter of Credit (ii) Sales Contract or Open Account (iii) Advance Payment (b) LC is not only the method of import. Describe the other options allowed in the Import Policy Order 2021-2024.

4. (a) Describe the incentives and facilities offered to the Non-Resident Bangladeshis (NRBs) against their homebound remittance through banking channels.

(b) How do you motivate your bank clients in favour of a formal or banking channel instead of a risky 'hundi' channel for receiving remittance? (c) Inward wage remittance is an important factor to keep BOP favourable and exchange rate stable. Explain it in your own words.

5. (a) What is LIBOR? Does it exist now?

(b) Discuss the following benchmark interest rates widely used as reference rate for cross- border lending: (i) SOFR (ii) SONIA (iii) TONA (iv) EURIBOR (c) What is offshore banking and how does it work?

6. (a) Change in the USA central bank's policy rate usually affects the global economy, including their own economy. Analyze the possible impact and consequences of the upward trend in US interest rates on the USD-BDT exchange rate. Will the collapse of the US Silicon Valley Bank (SVB) have any impact on Bangladesh economy?

(b) Analyze the impact of Ukraine War international trade and its consequences on exports of Bangladesh.

7. (a) Define under-invoicing and over-invoicing in international trade.

(b) Describe methods and techniques for price verification during the processing of import LC. (c) If an economy faces supply shortage of foreign exchange, the banking regulator should closely monitor the price verification process of LC opening banks. As a banker, analyze the issue in your own words.

8. As a Head of Foreign Trade Division of your bank, how would you deal with the following

situation under UCP-600: (a) As per LC terms, 08 March 2023 was the deadline of presentation of documents. Your customer has presented the documents on 09 March 2023. Note, that 08 March 2023 was a public holiday. Thus, all banks were closed on that day in Bangladesh. (b) Your customer has presented export documents for negotiation under irrevocable LC of UCP-600. Transport document shows that the shipment has been made late after the due date stipulated in export LC. (c) Suppose your bank is an advising bank of an LC. The LC issuing bank has requested you to add confirmation by your bank to the LC before advising it to the beneficiary. But the issuing bank has no credit line with your bank. (d) After scrutinizing shipping documents, you have found that there is a mismatch of the HS Code of goods between LC and Bill of Lading. Group B

9. Your exporter wants to sell a 120-day usance bill of EUR 65,000.00 to your bank. Calculate the buying exchange rate of your bank. How much does your bank have to pay to the exporter? Please use the following information:

(a) Inter-bank exchange rate: EUR 1 = USD 1.0715-1.0820 USD 1 = BDT 106.1010-107.7590 (b) Transit period 10 days (c) Profit margin BDT 0.10 per EUR (d) Your bank's overhead charge 0.0625% (e) Interest rate 6% per annum (Assume 360 days in a year. Please show your rough calculation)

10. Based on the following information, please calculate the buying and selling rate of Bangladesh Taka per Japanese Yen when inter-bank market exchange rate was,

USD 1=JPY 130.3010-132.1280 USD 1= BDT 106.1010-107.7590 Also calculate the amount of BDT to be paid by your bank for buying 2.00 million Japanese Yen. [N.B. Please show your rough calculation]   Previous Banking Diploma Questions solving is an important trick to pass the JAIBB and AIBB exams. So we hope it will help you in your next exam. Very soon we'll upload solutions of the above questions.