Post Graduate Diploma in International Business Operations
Term-End Examination

Time: 3 hours
Maximum Marks: 100

1. What is floating rate system ? Is a floating rate system more inflationary than a fixed rate system ? Explain. (20)

2. What is capital adequacy requirement ? Explain the different items included in Tier 2 capital. (20)

3. What are the functions of foreign exchange market ? Explain giving appropriate illustrations. (20)

4. What is the need and importance of international cash management ? Explain the advantages and disadvantages of centralised cash management (20)

5. What is project export finance ? While executing a project abroad what are the risks faced by exporters ? Give suitable illustrations in support of your answer. (20)

6. Define economic exposure and differentiate it from other types of exchange exposure. What are the hedging techniques to manage economic exposure ? (20)

7. What are the various techniques used in project appraisal ? Which of the techniques do you consider most appropriate for appraising a project ? Explain. (20)

8. Write short notes on any two of the following (10+10)

(i) Letter of Credit

(ii) Forward Exchange Cover

(iii) Balance of Payments