Sunday, November 8, 2009

Numericals in the Paper of International Trade Finance and Forex Operations

If you are preparing for JAIBP exams, I recommend you to make a plan atleast three months before the exam date. Do a detail study of give syllabus outline in intial two months and in the last month you solve all the up-to-date papers of the relevant subject, which are already available on IBP website.

But don't think that the pattern of the exam will remain the same, as it is always changed from various perspectives. In the exam on Winter 2009 Int'l Trade paper there was not a single numerical. Although there were numericals in all the previous papers but this time there was not a single one. So they can always change the format, unexpectidly, so be prepared for the surprises.

Previous Kinds of Numericals

In the previous papers there are two kinds of numericals, first are the forex numericals in which you have to deal with the currency exchange rates and usually have to interpret the quoted forward rates.
The second type is of treasury positions, in which you have to handle the square, overbought and oversold position.

For the first kind of numericals I was fully prepared but for the second kind there was not a perfect prep. So I feel my self lucky that I didn't got the numericals.

ICC Publications

I have recently taken paper of International Trade Finance and Forex Operations in JAIBP and for that I have collected a lot of preparation materail. Now, after the exam I would love to share all stuff with you (I didn't got time to upload during the exams..... aaaahhhh !!!! u know exam stress).

So here are some ICC publications which are very important and should be a much read for the students of International Trade. Click on the links to open the files which are in PDF format,

Uniform Custom Practices ( UCP ) 600

Uniform Rules for Bank to Bank Reimbursement (URR) 725

Uniform Rules for Collection ( URC ) 522

Incoterms

Incoterms are International Commercial terms which are used in international trade. These terms are very important , both in international trade and for the studetns of International Trade Finance and Forex Operations - JAIBP.

In the institute of Bankers exams winter 2009 we got a complete question on Incoterms. That question contained 10 marks and we had to write thirteen incoterms and the groups in which they are categorized.

Here, I will recommend you to visit the incoterms page of wikipedia http://en.wikipedia.org/wiki/Incoterms to which I am very thankful. Its a very well written page and contains very detailed information. This also shows the diagram explaining how costs are shared as per a certain incoterm.