Strategy: Answer any 2 out of 4. Prepare at least 5 topics.
Highest Priority (Asked 4+ Times)
1. Balance of Payment (BOP): Components, BOT vs BOP difference, Causes of deficit in Bangladesh and remedies.
2. Letter of Credit (LC): Operational procedure (Flow chart), Roles, rights, and liabilities of parties.
3. Back to Back (BTB) LC: Definition, Advantages/Disadvantages, Precautions for banks.
4. Export Problems of Bangladesh: Problems in export trade and probable solutions.
5. Domestic vs International Trade: Compare & Contrast, Importance of International Trade.
High Priority (Hot Topics from New Syllabus)
1. Service Export / Freelancing: Challenges and prospects of service export (ICT, Freelancing).
2. Capital Flight & Black Money: Causes of capital flight from Bangladesh and prevention suggestions.
3. Counter Trade: How it helps countries with low forex reserves, Regulations for Bangladesh.
4. Open Account Shift: Bangladesh's preparation for shifting from LC to Open Account.
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Part B: Mathematical Problem (10 Marks)
Strategy: Answer any 1 out of 2. Do not skip.
Must Prepare:
1. Cross Rate & Costing (UPAS/Usance): Calculation of exchange rate when transit period, swap cost, overhead, and profit margin are involved.
2. Export Bill Discounting: FDBP/Packing Credit calculation.
3. Forward Premium/Discount: Calculating forward rates for import/export.
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Part C: Case Study (20 Marks)
Strategy: Answer any 1 out of 2. Focus on regulations and bank liability.
Highest Priority Cases:
1. Import LC Discrepancy & Bank Liability: Documents with discrepancies, bank fails to send valid refusal notice (UCP 600 Art 16).
2. Back-to-Back LC Risk (RMG Sector): Master LC received, BTB LC opened, exporter fails to ship, forced loan (SOD) becomes due.
3. Trade Based Money Laundering (TBML): Over-invoicing/Under-invoicing scenarios.
4. Sanctions & SWIFT Screening: False Positive vs True Match.
5. UPAS LC: Interest rate calculation and impact on importers.
6. LIM/LTR Fraud: Importer selling goods without bank consent (Warehouse fraud).
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Part D: Compare & Contrast (5 Pairs = 10 Marks)
Strategy: Answer any 5 out of 10. Memorize the key distinction.
No. Pair A Pair B Key Distinction
1 URC 522 UCP 600 Bank is Agent vs Bank gives Undertaking
2 D/P D/A Pay immediately vs Accept & pay later
3 Buyer's Credit Supplier's Credit Importer gets loan vs Exporter gives credit
4 Over Invoicing Under Invoicing Capital flight vs Duty evasion
5 Convertible Taka A/C Non-Convertible Taka A/C Can send abroad vs Local use only
6 UPAS LC Usance LC Exporter paid at sight vs Exporter paid at maturity
7 Sales Contract Open Account Legal agreement vs Payment method
8 Speculation Arbitrage Risk taking vs Riskless profit
9 OD Sight Rate BC Selling Rate Interbank rate vs Customer rate
10 FERA 1947 GFET Act vs Guideline
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Part E: Short Notes (10 Questions = 20 Marks)
Strategy: Answer ALL. Keep answers brief (2-3 lines).
No. Topic Key Points to Mention
1 Deemed Export Goods don't leave country, payment in FC.
2 Net Open Position (NOP) Long position vs Short position.
3 SOFR vs EURIBOR Replacement of LIBOR.
4 UPAS Usance Payable at Sight (Importer usance, Exporter sight).
5 ERQ Account Exporters' Retention Quota (60% general, 70% ICT).
6 NITA Non-resident Investor's Taka Account.
7 Incoterms 2020 DAT replaced by DPU; FCA with onboard endorsement.
8 Force Majeure Acts of God, war, pandemic.
9 Shipping Guarantee Issued when goods arrive before documents.
10 TBML Red Flags Over-invoicing, circuitous routing.
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Critical Must-Know Facts (For Any Section)
1. "Bank Deals with Documents" Principle: The most repeated quote. It is the core answer for any LC fraud/discrepancy question.
2. Domestic Regulations (GFET):
· IRC/ERC not required for capital machinery imports.
· Back to Back LC: Only for bonded warehouse units; maximum 180 days usance.
3. UCP 600 Articles Backbone:
· Art 2: Complying Presentation.
· Art 14: Examination standard.
· Art 16: Refusal notice (5 banking days).
· Art 20: On Board Notation.
4. Currency Convertibility: Bangladesh Taka is convertible on Current Account (since 1994 - IMF Article VIII), but NOT fully convertible on Capital Account.
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Summary: Path to First Class (50+/100)
Master these specific areas for a guaranteed high score:
· ✅ Back to Back LC (Process & Risk)
· ✅ UCP 600 Document Examination (Art 14 & 16)
· ✅ TBML Red Flags (Under/Over Invoicing)
· ✅ Compare & Contrast (All 10 pairs listed above)
· ✅ Math (Cross Rate calculation with interest/costing)
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