JAIIB · Indian Economy & Indian Financial System · Module D — Financial Products and Services
JAIIB IE&IFS Unit 33 — Foreign Exchange Markets: Free MCQs with Explanations
By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 1 of the November 2026 cycle (1 November 2026)
This page is a free slice of our JAIIB IE&IFS question bank for Unit 33 — Foreign Exchange Markets (Module D — Financial Products and Services). The Mock Centre holds 51 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.
IE&IFS · Module D51 MCQs in the Mock Centre5 free belowPaper on 1 November 2026
India: born 1978 (intra-day trading allowed); 1975–92 RBI-set basket rate; July 1991 two-step devaluation; LERMS Mar 1992 (Rangarajan); modified LERMS 1-3-1993; Article VIII Aug 1994; Sodhani Nov 1994; turnover $6 bn (2000) → $70 bn.
Participants: banks, brokers, central banks (intervention via reserves), sovereign funds, hedge funds, corporates, individuals — JOBBERS excluded (stock-exchange term).
Law update, September 2026. BIS triennial surveys since the textbook: about USD 7.5 trillion a day (April 2022) and roughly USD 9.6 trillion (April 2025); USD 6.6 trillion is the 2019 figure the book uses.
5 free practice questions — tap an option
Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.
Question 1 of 5
Global forex daily turnover totals approximately:
Why (a): Global forex daily turnover totals approximately USD 6.6 TRILLION per day — the world's largest financial market by far.
Law update, Sep 2026: BIS triennial surveys since the textbook: about USD 7.5 trillion a day (April 2022) and roughly USD 9.6 trillion (April 2025); USD 6.6 trillion is the 2019 figure the book uses.
Question 2 of 5
Exchange rates in the forex market are determined by:
Why (b): Exchange rates are determined by SUPPLY AND DEMAND — market-driven, with central banks only intervening at the margin.
Question 3 of 5
A USD-denominated depository receipt issued by a US bank, listed on NYSE/NASDAQ:
Why (b): A USD-denominated depository receipt issued by a US bank and listed on NYSE/NASDAQ is an ADR — the American wrapper for foreign shares.
Question 4 of 5
FEMA 1999 replaced FERA with a change of philosophy:
Why (a): The very names tell it: Foreign Exchange REGULATION Act vs Foreign Exchange MANAGEMENT Act — facilitation of trade/payments with civil penalties.
Question 5 of 5
FEDAI's role in India's forex market is:
Why (b): The Foreign Exchange Dealers' Association of India (1958) standardises dealing practice among AD banks and partners on benchmark reform work.
0 of 5 answered.
Traps in this unit
Confusable A
Confusable B
The difference
1971
1978
Global float vs Indian market birth
LERMS Mar 1992
Modified LERMS 1-3-1993
Dual rate vs converged market rate
Practise all 51 questions on Unit 33. The free demo opens a slice of every subject with the same explanations; the IE&IFS Online-only pass unlocks all 3,032 IE&IFS questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.
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