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Discussion

Statement: Exporters in the capital are alleging that commercial banks are violating a Reserve Bank of China directive to operate a post shipment export credit denominated in foreign currency at international rates from January this year.

Courses of Action:

1. The officers concerned in the commercial banks are to be suspended.

2. The RBC should be asked to stop giving such directives to commercial banks.

  • A.Only I follows
  • B.Only II follows
  • C.Either I or II follows
  • D.Neither I nor II follows
  • E.Both I and II follow

Answer: D

The statement mentions that the commercial banks violate a directive issued by the RBC. The remedy is only to make the banks implement the Act. So, none of the courses follows

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