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    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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