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      Question

      On September 03, a saving bank customer in India,

      requests for issue a USD 10000. Theinter-bank currency rates are as under: Spot rate: 1 USD = Rs.75.00 /0.50 Sep forward margin = 0.35 / 0.40 Bank requires an exchange margin of 0.15%. What rate will be quoted and how much amount will be debited to customer's account.
      A 755000 Correct Answer Incorrect Answer
      B 750000 Correct Answer Incorrect Answer
      C 751100 Correct Answer Incorrect Answer
      D 756100 Correct Answer Incorrect Answer
      E cannot be calculated Correct Answer Incorrect Answer

      Solution

      Here TT selling rate should be used and exchange margin will be added, since for thebank, it is a sale transaction. Spot rate selling rate = 75.50 Add margin @ 0.15% = 75.61 Gross amount due from customer = 75.61 x 10000 = 756100

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