VINAYAKA MISSIONS UNIVERSITY, SALEM.

V.M.K.V.ENGINEERING COLLEGE

Department of Management Studies

IV Semester Examinations
Subject: INTERNATIONAL FINANCE
QUESTION BANK
UNIT 1
PART A

1. What do you mean by International Finance?

2. What is International Trade?
3. What is the difference between Domestic &International Trade?
4. What do you mean by GDP?
5. Define Globalization?
6. What is international capital flow?
7. What are the theories involve in International Finance?
8. What do you mean by localization?
9. What do you mean by privatization?
10. What is Foreign Currency Exchange Rate?
11. List the principles of WTO?
12. What are TRIPS?
13. Explain TRIMS?
14. What do you mean by import substitution?
15. What are staple exports?
16. What do you mean by GNP?
17.What is commercial bank?
18.Mention the non financial corporation.
19.Write short notes on Dividend Policy
20.What is stability of dividend?
21. What do you understand by Residual theory of dividend?
22. What do you mean by optimal dividend policy?
23. What is hostile take over?
24. What do you mean by amalgamation?
25. What is premium and discount?

PART B

1. What do you mean by International Finance? Why the need of

International Finance is emerged?
2. Discuss the different macro issues involved in the International Finance?
3. Discuss the different micro issues involved in the International Finance?
4. Discuss the emerging challenges in the international finance now a day?
5. Write a brief account on why do we need to study International Finance?
6. What are the factors involved in the International Finance?
7. What are the responsibilities of today’s financial managers?
8. List the reasons that give rise to international trade?
9. Explain the EXIM policy in detail?
10.List the barriers to economic growth?

UNIT 2
PART A

1. What are the four component of European Monetary System?

2. What do you mean International Monetary System?
3. What is Devaluation of currency?
4. What do you mean by Foreign Currency Exchange Rate?
5. When a currency is called Soft or Weak Currency?
6. What do you mean by SDR?
7. What is Floating Rate System?
8. What do you understand by Crawling Peg?
9. Define Spot Transaction?
10. Define Forward Transaction?
11.State the objectives of EXIM bank?
12.What do you mean by Letter of Credit?
13.List the cost covered by the shipment finance?
14.Define forfeiting?
15.What do you mean by deferred payment terms?
16.What is the need for finance in international trade?
17.What are FOB, DIP, and CIF?
18.What is Revolving Letter of Credit?
19.What are the Benefits of ECGC?
20.What is line of credit?
21.What do you mean by consignment sale?
22.What are ‘C’ terms and ‘D’ terms And ‘E’ terms?
23.Explain DAF, DES, DEQ, DDU, and DDP?
24.Define port charges?
25.What is Arbitration?

PART B
1. What is foreign Currency Exchange Rate? What are the classifications of
IMF’S Exchange Rate Regime?
2. What are the perquisites accepted after the collapse of the Bretton Woods
Exchange Rate System?
3. Discuss in detail how an exchange rate is determined under undelayed
and delayed transaction?
4. Discuss all the categories which span the spectrum of Exchange Rate
Regime?
5. Discuss in detail the different exchange devices under the Exchange Rate
Regime?
6. Briefly explain how currency rate are treated on Spot Market and
Forward Market?
7. Why the World Bank was established and what are principal functions of
World Bank?
8. What is the need for finance in international trade?
9. What is LIC? Discuss the different types of LIC?
10. What is the Difference between pre-shipment and
post-shipment finance?

UNIT 3

PART A

1. What do you mean by Balance of Payment?

2. Define Economic Transaction?
3. What is Double Entry System?
4. What are the three components of BOP?
5. What is Balance of Trade?
6. What do you mean by Balance of Invisible?
7. What is surplus in Balance of Payment?
8. What is deficit in Balance of Payment?
9. Define resident under Balance of Payment?
10. What are components of capital account?
11.What do you mean by exchange rate?
12.What is ppp?
13.What are the different classifications of exchange rate option?
14.Explain SDR?
15.Explain Brelton Woods Agreement?
16.What is Hedging?
17.Define Spot and Forward rate?
18.State the hedging tools used in forex Management?
19.What do you understand by swap?
20.Explain options?
21.What are the factors that influence the exchange rate?
22.State the tools of forecasting?
23.What is cost push inflation?
24. What is FDI?
25. What is risk Management?

PART B
1. What do you mean by Balance of Payment? What are their components
discuss in brief?
2. What are the elements in the current account? Discuss in detail.
3. Give a brief description on the constraints of the capital account?
4. Discuss in detail about Balance of Trade and Balance of Invisible?
5. Briefly explain the capital account of a country in Balance of Payment
context. What are the newly or recently accepted classifications of capital
account?
6. List out recommendations given by Dr. Rangarajan Committee for
balance of payment?
7. Give the meaning and definition of BOP. Discuss in detail a) Economic
Transaction b) Double Entry System c) Concept of Residence d) Time of
Recording?
8. Distinguish between FERA and FEMA?
9. Distinguish between ppp and interest rate party theory?
10.Discuss the factors that determine the exchange rate?

UNIT 4

PART A

1. Define foreign exchange market?

2. What is spot market?

3. What is future market?

4. Who are the five participants in foreign exchange market?

 5. Define primary price maker?

6. What is secondary price maker?

7. Who called price taker?

8. What is international trade?

9. What do you mean by currency option?

10. What do you mean by clearing house?

11 What is GSP?

12. What is Consular Invoice?

13. What are the various types of inspection?

14. Explain bill of exchange?

15. What is Mates Receipt?

16. What are the various shipping documents?

17. Explain Airway bill?

18. Explain GSPS?

19. State the UPCDC norms?

20. What is a GR Form?

21. Explain IEC?

22. What are the functions of EPC?

23. What do you mean by covered interest arbitrage?

24. What do mean by Foreign Exchange Risk Management?
25. What are the basic tools to manage the risk?
 PART B

1. What is foreign exchange market? What are the functions of foreign

exchange market?

2. What are the parties involved in the foreign exchange market?

3. What are the foreign exchange instruments? Discuss in detail.

4. Discuss the method of foreign payments under the foreign exchange

market?

5. How the exchange rate is determined under the foreign exchange market?

6. Write down the factors which are influencing the rate of exchange?
Discuss.

7. Give a brief account on the structure of foreign exchange market.

8. Explain the Export documents in detail?

9. Explain the documents related to payment in trade?
10.What are the documents that are required relating to shipment?

UNIT 5

PART A
1. What do you mean by foreign risk?

2. What bare the different forms of Currency Risk?

3. Define Credit risk.

4. What is netting?

5. What do you mean by risk sharing?

6. What do you mean by Transaction exposure?

7. What do you mean by Accounting Exposure?

8. What is Risk control?

9. What is financial risk?

10.What is Inflation Risk?

11.What is DFRC Scheme?

12. What is Hot money?
13.What is the role of SEZ in trade?
14.List the organizations that promote exports in our country?
15.What are the activities of export houses?
16.What is EPCG?
17.Why export concessions are important?
18.List the benefits of export concessions?
19.What are the eligibility criteria for EPCG schemes?
20. What is Bulls and bears?
21. What is Political risk?
22. What is Leading and lagging?
 23.Who are Foreign Institutional Investors?
24.What do you mean by Euro Convertible bonds?

25.What is private equity?

PART B

1. What do you mean by Foreign Exchange Risk? What are the forms of
Currency Risk?

2. What are the external techniques of exposure Management? Discuss each

in detail.

3. What do you mean by Accounting Exposure and Economic Exposure?

Discuss in brief

4. What are the External techniques of Exposure Management? Describe in

detail

5. Give a brief account on the different dimensions of Foreign Exchange

Risk.

6. Write short note on – a) Invoicing b) Netting c) Matching d) Leading e)

Risk Sharing.

7. Discuss in brief – a) Forward market b) Discounting bills receivable c)

Factoring of receivable d) Currency overdraft e) Currency SWAP’S f)
Exchange risk guarantee.

8. Explain the various types of Export houses?

9. Explain DEPB Scheme?

10.State the Advantages of Export houses and trading houses?

Vinayaka Missions University, Salem

Faculty of Management Studies
MBA DEGREE EXAMINATION,
Model Question Paper
IV Semester
INTERNATIONAL FINANCE
Time: 3 Hrs Max. Marks: 50 Marks
Part A (10*1=10)

1. What is the difference between Domestic &International Trade?

2. What do you mean by GDP?
3. When a currency is called Soft or Weak Currency?
4. What do you mean by SDR?
5. What is Balance of Trade?
6. What do you mean by Balance of Invisible?
7. Define primary price maker?

8. What is secondary price maker?

9. Define Credit risk.

10.What is Netting?
 Part B (5*8=40)

11. a) What are the responsibilities of today’s financial managers?

(OR)
b) Discuss the different macro issues involved in the International
Finance?

12. a) Discuss in detail the different exchange devices under the Exchange
Rate Regime?
(OR)
b) Give a brief description on the constraints of the capital account?
13. a) Briefly explain how currency rate are treated on Spot Market and
Forward Market?
(OR)
b) What do you mean by Balance of Payment? What are their
components discuss in brief?
14. a) What are the parties involved in the foreign exchange market?

(OR)

b) What are the foreign exchange instruments? Discuss in detail.

15. a) What are the external techniques of exposure Management? Discuss

each in detail.

(OR)
b) What do you mean by Accounting Exposure and Economic
Exposure? Discuss in brief.