INTERNATIONAL FINANCE QUESTION PAPER PATTERN AND QUESTION BANK

Q1. Attempt any two:

• a. Theory
• b. Theory
• c. Practical

Q2. Attempt any two:

• a. Practical
• b. Practical
• c. Theory

Q3. Attempt any two:

• a. Theory
• b. Theory
• c. Theory

Q4. Attempt any two:

• a. Theory
• b. Theory
• c. Theory or Practical (Capital Budgeting)

Q5. Case study:

• 5 marks Practical

UNIT I

• 1. Scope/Importance and Challenges of IF (Not Important)
• 2. BoP Components and BoP Identity
• 3. Accomodating vs Autonomous Transactions
• 4. Depreciation vs Devaluation
• 5. Gold Standard vs Bretton Woods System
• 6. Reasons for collapse of Bretton Woods and Smithsonian Agreement
• 7. Fixed vs Flexible system – Advantages
• 8. European Monetary System
• 9. Factors affecting exchange rates
• 10. Present Exchnage rates in different parts of the world (Read)
• 11. Nostro Vostro LORO

UNIT II

• 1. Currency Options in the Forex Markets
• 2. Hedging and Speculation with Interest Rate Futures
• 3. Methods of Forecasting Exchange Rates
• 4. Technical Approach in Exchange Rate Mechanism
• 5. Participants in Forex Markets
• 6. PPP and CIP Theory (Fisher Effect) (Read)
• 7. Structure of Forex Market

UNIT III

• 1. Origin and Characteristics of Euro Currency Markets
• 2. Types of Instruments/Bonds in Euro Market
• 3. Note on Advantages of Offshore Banking (Eurobanks). What are its regulations?
• 4. ADR, GDR and IDR – Types, Advantages
• 5. Types of Investment Risk
• 6. FII vs FDI
• 7. FEDAI
• 8. FERA vs FEMA
• 9. Role and Qualities of Forex Manager (Broker)
• 10. Explain Cashflow at Subsidiary and Parent Company
• 11.What is Repatriation of profits? What is the procedure for an MNC to repatriate profits outside India?

UNIT IV

• 1. Types of Risk in Forex Markets
• 2. How to manage Risk in Forex
• 3. Explain Portfolio Management in Forex Assets
• 4. Explain Tax Havens
• 5. What are the benefits of doing International Business
• 6. What is tax liability? How do countries reduce it?
• 7. Steps in International Project Appraisal
• 8. Options Approach to Project Appraisal
• 9. Types of International Taxation and its Objectives