International Finance- Exam tipsÂ
Short Notes:-
- FIAT Currency
- NOSTRO/VOSTRO/LORO account
- Accommodating and autonomous transactions
- PIPS and POINTS
- Types of contracts
- Purchasing power parity
- Managed float
- Petrodollars
- Hot money
- FDI/FPI
- Translation risk
- Tax havens
- Authorised dealers/Money changers
- Intervention
- Yankee bonds
- Leads/Lags
- Card rates
- Participatory notesÂ
Long questions
- What are the factors affecting the BOP situations(v imp)
- How are exchange rates determines (Imp)
- How can a central bank take corrective actions to solve the imbalance in BOP
- Flexible exchange rate vs fixed vs gold standard
- What factors led to the development of Euro Currency market(v imp)
- Explain in details the GDR issue procedure
- What is SDR and how can it help in correction on BOP
- Explain the various methods of hedging(imp)
- Role of European Central Bank
- Loan syndication
- FEDIA
- BIS
- Forward contracts vs future contractsÂ
Case study:– Case study can be expected on the following topics
- Convertibility of rupee
- European debt crisis
- South east Asian crises
- RBI intervension/ Flexible exchange systemsÂ
Numerical questions:-
- Cross rates
- Direct and indirect quote
- 2 way and 3 way arbitrage
- Calculation of swap points
- Forward rates- broken dates
- AFM
- Interest rate arbitrage
- Borrowing and lending decisions.
Please note:-
- The above mentioned questions are a must do for all however they should not be considered as the only questions. Students are requested to go through the entire curriculum and concentrate on the above mentioned questions
- Concepts questions need to be written in points with not a too detailed elaboration. Relevant real life examples would help you get more marks
- Students are requested to attempt all the numerical questions which would roughly carry around 25 marks since correct numerical questions would give a student full marks
- Case study though would be given, however the concept clarity and real life examples only would help the students score good marks.
DO NOT TAKE UNDUE PRESSURES. ALL THE BEST
Content courtesy:- Vipin Saboo Tutorials
For more information please contact Vipin Saboo on [email protected] or 9820779873Â
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