The following is the Question Bank of the Old Syllabus Chp.

Balance of payments Concepts:1) Balance of visible trade/ merchandise/ balance of trade 2) Autonomous transactions/transaction above the line 3) Accommodating capital flows/transaction below the line 4) Treatment of goodwill in BOP/ invisibles 5) Unilateral transfers/unrequited payments/ transfer payments 5 mks:1) What is BOP? What are its components? OR 2) Give the outline of BOP statements. 3) In the accounting sense, BOP always balances. Explain the statement. 4) What are the errors and omissions in BOP? 5) How will you identify the surplus/deficit in BOP? Chp. International Monetary system Concepts:1) Exchange rate 2) Gold species standard 3) Gold bullion standard 4) Fiat money 5) Gold exchange standard 6) Mint par of exchange 7) Bretton woods system 8 ) Triffin paradox 9) Free float 10) Dirty float/ managed float 11) RBI intervention 12) Dollar standard 13) Devaluation 14) Revaluation 15) LERMS 16) Seignorage 17) Currency basket/board 18) Special drawing rights/ paper gold 19) Extended fund facility / EFF 20) Credit trance position/ policies

21) Reserve tranche policies 22) Compensatory financing facility (CFF) 23) Supplemental reserve facility (SRF) 24) Contingent credit line 25) FTA( free trade area) 26) Customs union 27) Parity grid 28) Divergence indicator 29) Snake in the tunnel 30) Euro 5 mks:1) Explain the features of Gold standard OR 2) How to find out exchange rate in gold standard OR 3) Explain the various types of gold standard system and its advantages OR 4) What are the essentials to make gold system successful? Why did it fail? OR 5) What are the fixed exchange rate system? 6) Bretton woods and the reasons for failure OR 7) Triffin paradox OR 8 ) Smith sonion agreement 9) Capital a/c convertibility. Explain with special reference to India. 10) LERMS 11) Advantages and disadvantages of devaluation of currency 12) Exchange rate regimes OR 13) Modern exchange rate system 14) What is IMF? What are its objectives and how far the objectives are achieved? 15) Facilitating mechanism of IMF 16) SDR 17) Examine the transformation of European Union OR 18) European monetary system from political and economic union to monetary union OR 19) Criteria to become the member of European union OR 20) Impact of euro currency on international trade 21) Evolution of euro markets Chp. Foreign Exchange Market Concepts1) Value date/settlement date

2) Spot rate 3) Forward rate 4) Forward transactions 5) SWAPs 6) Tom and cash 7) Vehicle currency 8 ) CHIPs 9) SWIFT 10) Bid rate 11) Ask rate 12) Cross rate 13) Direct quote 14) Indirect quote 15) American quotes 16) European terms 5mks:1) What is Foreign Exchange Market? Explain the participants. 2) Dist b/w Direct quote and indirect quote. 3) What is arbitrage? Explain its types. 4) Explain in detail purchasing power parity (PPP) theory? 5) SN on covered interest parity theory Chp. International Financial Markets Concepts:1) Bond with option 2) Zero coupon bonds 3) International financial market 4) Samurai bon 5) Yankee bonds 6) Euro CPs 7) Petro dollars 8 ) Junk bonds 9) Floating rate Note (FRN) 10) Bull dog 11) Flip flop FRN 5mks:-

1) Briefly discuss the evolution of euro currency markets. 2) Compare Euro credit and Euro bonds. Chp. International Equity markets Concepts1) GDR 2) ADR 3) FCCB 4) Sponsored Depository Receipts 5) Unsponsored Depository Receipts 6) Euro equities 5 mks:1) What is GDR? Parties and steps in GDR 2) Explain the term FDI 3) SN on FCCB 4) Different instruments available with a corporate body in India to raise funds abroad 5) Dist b/w FDI and FPI Chp. Multilateral Financial Institutions Concepts:1) ODA 2) Foreign aid 3) Multilateral investment guarantee 4) Multilateral aid 5) IBRD 6) IDA 7) IFC 8 ) MIGA 5mks:1) Dist b/w Foreign Capital and Foreign aid 2) Channels through which capital flow from right country to poor country 3) IBRD 4) IDA 5) Dist b/w IDA and IFC 6) MIGA Chp. Exposure and Risk in International Finance Concepts:-

1) Hedging 2) Inflation risk 3) Hot money 4) Bulls and bears 5) Long position and short position 6) Position risk 7) Translation risk 8 ) Futures 9) Strike price/exercise price 10) American option 11) European option 12) Marking to market 13) Price discovery 5mks:1) Bring out the arguments in favour and against hedging 2) Dist b/w forwards and future contracts 3) How can the companies cover their position by using currency future market? OR 4) What do you mean by currency futures? What are its features? 5) Explain with example, how options are used to cover exchange risk. 6) Explain Currency SWAPs and currency options. 7) What are the different types of financial SWAPs. 8 ) What are the different types of exchange exposure that the multinational companies are exposed to? 9) What do you mean by currency risk? Explain with examples. OR 10) Explain various types of risk and exposure and internal techniques used to deal with? OR 11) Discuss the exposure and risk occurring due to changes in interest rate and exchange rates? sums on1) arbitrage gain 2) interest rate arbitrage 3) triangular arbitrage 4) outright forward and spread Questions :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