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International Banking and Foreign Exchange Management

Q1: Xlone Ltd is an Indian company planning to raise capital from US market. If
you are the head of finance department of the Xlone Ltd suggest them various ways
to do so? If company doesn't want to list in US stock market, than how company
can generate fund in USD? What are the Challenges for the same? (10 Marks)

Ans: Solution by DistPub. Send email to distpub@gmail.com

Q2: 1991 is the year of transformation for economy of India; LPG (Liberalization,
Privatization and Globalization) policy opened the door for many foreign companies
in Indian Market. In context to LPG there were many amendments in foreign
exchange act. Please explain the same and compare that with the law before LPG.
(10 Marks)

Q3: FRANKFURT: The European Central Bank is adding half a trillion euros ($579
billion) in stimulus to the eurozone economy as it hopes to support growth as
Europe heads into what could be a tumultuous election year. The chief monetary
authority for the 19 countries that use the euro said Thursday it would keep
injecting money into the economy through its bond-buying program until at least
December, past the previous end date of March. It will reduce the amount of bonds
it buys after March to 60 billion euros ($64 billion) a month from 80 billion euros.
That effectively adds at least 540 billion euros in stimulus to the existing 1.74
billion ($1.87 trillion) effort. That's slightly more than expected by analysts, who on
average thought the ECB would extend for only six months at the same current
rate. SOURCE: Economic Times

a. Why the European Central Bank is injecting the money in the Economy? (5
Marks)

b. How monetary policy and Export Policy are related? What is the role of
Balance of Payment to improve the employment in the nation? (5 Marks)