Third Year

Time : Three hours

Maximum : 75 marks

SECTION - A (5 x 3 = 15)

1. Section A consists of TEN short answer questions. The candidate has to answer FIVE questions. The answer shall not exceed 1 page each.
2. Section B consists of FIVE questions. Each question consists of either, or choices and the candidate has to answer either (a) or (b) from each question. The answer shall not exceed 5 pages each.

SECTION A — (5 x 3 = 15 marks)

1. Answer any FIVE in brief:

(a) Balance of payment.
(b) International financial system.
(c) Economic exposure.
(d) Forex Market
(e) Letter of credit.
(f) Hedging.
(g) Forward trading.
(h) Exchange risk exposure.
(i) Determinants of foreign capital.
(j) Pre-shipment finance.

SECTION B - (5 x 12 60 marks)

2. (a) Identify the various economic issues that influence the international financing decisions.

Or

(b) Find out the various source of finance for international finance.

3. (a) How do the exchange rates determined?

Or

(b) How do you forecast the exchange variations? How to protect from such variables?

4. (a) What are the sources of transaction exposure? How do you minimise the transaction exposure?

Or

(b) Draw the international strategy to minimise the risk managing cash in international finance.

5. (a) What factors determine the volume of investment in different countries? How do firm maximise return and minimise risk foreign investments?

Or

(b) Suggest various ways and means of liberalisation of forex rules and regulations in India to benefit both to the country and international business firms.

6. (a) How to minimise the risk of given trade credit to buyers in different countries?

Or

b) How do you minimise the foreign exchange risk in holding receivables?

[201/DM-1-03]

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