Question

    An Indian exporter raises a Letter of Credit (LC) worth

    USD 1,00,000. The exchange rate on the LC issuance date is ₹83.50/USD. The bank charges 0.25% as commission. What is the commission amount in INR?
    A ₹20,750 Correct Answer Incorrect Answer
    B ₹22,500 Correct Answer Incorrect Answer
    C ₹20,875 Correct Answer Incorrect Answer
    D ₹24,000 Correct Answer Incorrect Answer
    E ₹18,500 Correct Answer Incorrect Answer

    Solution

    LC Value in INR = 1,00,000 × ₹83.50 = ₹83,50,000 Commission = 0.25% of ₹83,50,000 = ₹20,875

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