Reference no: EM132870299
Mr Aakash has completed his MBA in Finance from Balaji Pune and secured job in a reputed Investment Bank namely Goldman Sach at Wall Street, New York. He has following Bank accounts at Bank of Maharashtra, Pune.
a. Normal Saving Account which he was operating while doing his MBA with a balance of Rs. 75,000.
b. He would like to send USD 5000 to India to be invested in rupee term deposits as rate of interest are higher on rupee deposits in India than USD.
c. He want to keep liquid funds in India to the the tune of Rs. 5.00 lac for meeting exigency by his parents or for his use in USA if required.
d. He wants to invest USD 10,000 in India where rate of interest on foreign currency deposits is higher but does not want to take exchange risk.
e. Even after his return to country he would like to continue this USD investment of USD 10,000 in foreign currency only. he want advice on various options available to him for achieving above objectives.
Solve the following MCQ
1. Mr Aakash can request his Bank to re-designate his old saving account as:
a) Non Resident External Rupee Acount
b) Foreign currency Non Resident Account
c) Non Resident Ordinary rupee account
d) any of the above
2. He can invest in rupee term deposits in India by remitting USD 5000 and earn higher rate of interest on rupee term deposits by:
a) Investing in NRE rupee Term Deposit where interest earned is higher and tax free
b) Investing in FCNR
c) Investing in NRO Term Deposit where interest earned is taxABLE.
d) Investing in RESIDENT Term Deposit
3. Keeping liquid funds in India to the tune of Rs. 5.00 lac for exigency of parents and for his use in USA if required.
a) Keeping in NRO accounts
b) Opening FCNR account
c) Keeping in NRE Saving account where funds are free repatriable
d) Any of the above
e) Other:
4. Investing USD 10,000 in India without running exchange risk.
a) Keeping in rupee NRE Term Deposits
b) Keeping USD 10,000 in Foreign Currency Non Resident Deposits [FCNR]
c) Keeping in NRO Term Deposits
d) Keeping in Resident Term Deposits
5. After returning to India, he has the option to retain deposits in foreign currency by keeping the same in:
a) Resident Foreign Currency Accounts
b) continuing FCNR deposits
c) continuing NRE A/c
d) any of the above