nternational Finance Questions Bank

Posted by BMS.co.in Editorial Team in Question Banks | 0 comments 1. Explain the meaning and scope of International finance 2. Explain Balance of payments as determinant of demand for and supply of currency 3. Explain Exchange rate and Determinants of/factors affecting exchange rates. 4. Explain Current account deficit v/s Balance of trade and their implications on exchange rate 5. Explain Exchange rate quotations, Direct and Indirect rates, cross currency rates, vehicle currency. 6. Problems/Numericals on % spread, calculation of cross rates. 7. Explain the Classification of rates in terms of settlement (cash, tom, spot and forward). 8. Explain Arbitrage, Speculation and Trading 9. Numericals on Spot rate arbitrage calculation 10. Explain the Relationship between exchange rates, interest rates, and commodity prices (through international parity conditions namely Purchasing Power Parity, and Fisher Parity) 11. Explain the Use of Covered Interest Parity theory in arbitrage, borrowing and investment decisions. 12. Numericals on Calculation of forward rates through use of forward schedules, through use of formula, annualized forward margin, calculation of swap points (calculations for cash/ tom rates to be excluded) 13. Write a note on Exchange rate regimes 14. Write a note on Features of Gold Standard 15. Write a note on Bretton Woods System Background and Features, reasons for its failure, Smithsonian agreement, SDRs. 16. Explain Flexible exchange rate system Features, Managed float, Central Bank intervention. 17. Explain Merits and Demerits of Fixed and Flexible Exchange rate systems. 18. Explain the Characteristics of International Foreign Exchange Markets. 19. Explain the Origin and reasons for the growth of Euro currency (off shore) markets, their characteristics and components. 20. Write a note on Euro-currency deposit, loans, bonds and notes market. 21. Explain the Concept of off shore banking as a form of globalization of the Euro currency concept, its introduction in India, tax havens. 22. Explain International Equity Markets 23. Explain the Concept of Depository Receipt. 24. Explain Global Depository Receipt- characteristics, mechanism of issue, participants involved. 25. Explain American Depository Receipt types and characteristics 26. Explain Foreign Currency Convertible Bonds and Foreign Currency 27. Explain Foreign Direct Investment and Foreign Portfolio Investment 28. Explain Participatory notes 29. Write a note on Foreign Exchange Management in India 30. Explain the Retail and Wholesale components of the Indian foreign exchange market. 31. Explain Capital account Convertibility 32. Write a note on Reserve Management

33. Explain the Role of FEDAI in the Indian foreign exchange market. 34. Explain Risk versus exposure 35. Explain Transaction, Translation and Economic risks faced by Corporate entities 36. Explain Transaction, Position, Pre-settlement, Settlement risks faced by commercial banks 37. Write a note on Internal and external hedging 38. Explain Foreign currency derivatives as instruments of risk management i.e. Forward contracts, Swaps, Futures and Options. 39. Write a note on Overview of Non-deliverable forward Market (NDF market) 40. Explain the Contribution of Bank for International Settlements in risk management system 41. Write a note on European Central Bank