New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Under the revised framework for hedging foreign exchange

    risk, what condition must be met by users taking positions beyond USD 100 million in contracts involving INR?
    A The user must report the exposure to the RBI directly Correct Answer Incorrect Answer
    B The user must submit quarterly reports to the authorized dealer Correct Answer Incorrect Answer
    C The user must obtain a special license from the RBI Correct Answer Incorrect Answer
    D The user must designate an Authorized Dealer for monitoring transactions Correct Answer Incorrect Answer
    E The user must hedge their entire portfolio Correct Answer Incorrect Answer

    Solution

    As per the circular on "Risk Management and Inter-Bank Dealings," users taking positions beyond USD 100 million must designate an Authorized Dealer to monitor their transactions.

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