Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2016 Summer 3rd Sem 2830502 International Finance If Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER (03) ? ? EXAMINATION ? SUMMER 2016
Subject Code:2830502 Date: 06/05/2016
Subject Name: International Finance (IF)
Time: 10.30 AM TO 01.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q. No. Question Text and Option
Objective Questions
6
Q.1 (a)
1.
A standardized forward contract is called
A. Future B. Netting
C. Swap D. Option
2.
Which of the following Letter of credit (LOC) doesn?t require any document
accompanying it?
A. Unconfirmed LOC B. Back to back LOC
C. Clean LOC D Revolving LOC
3.
LIBOR is the
A. Deposit rate in
European banks
B. Interest rate in Eurocurrency Market
C. Interest rate in
Eurobond market
D. Deposit rate applicable to interbank loans
within London
4.
_________ is a time draft on and accepted by one bank on another one.
A. Corporate Guarantee B. Bill of lading
C. Bank guarantee D. Banker?s acceptance
5.
The exchange of foreign currency exposures is called
A. Put option B. In the money
C. Forward D. Swap
6.
An Industrial unit which offers entire production for export is called
A. EOU B. Industrial estate
C. EPZ D. FTZ
Q.1 (b) 1.In the money option
2.Arbitrage
3.Purchasing power parity
4. Options
04
Q.1 (c) What are the factors affecting cross border merger and acquisition? 04
Q.2 (a) Define Future Contract and explain the difference between Forward
Contract and Futures Contract?
07
(b) Explain the role of WTO in international Business? 07
OR
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1
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER (03) ? ? EXAMINATION ? SUMMER 2016
Subject Code:2830502 Date: 06/05/2016
Subject Name: International Finance (IF)
Time: 10.30 AM TO 01.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q. No. Question Text and Option
Objective Questions
6
Q.1 (a)
1.
A standardized forward contract is called
A. Future B. Netting
C. Swap D. Option
2.
Which of the following Letter of credit (LOC) doesn?t require any document
accompanying it?
A. Unconfirmed LOC B. Back to back LOC
C. Clean LOC D Revolving LOC
3.
LIBOR is the
A. Deposit rate in
European banks
B. Interest rate in Eurocurrency Market
C. Interest rate in
Eurobond market
D. Deposit rate applicable to interbank loans
within London
4.
_________ is a time draft on and accepted by one bank on another one.
A. Corporate Guarantee B. Bill of lading
C. Bank guarantee D. Banker?s acceptance
5.
The exchange of foreign currency exposures is called
A. Put option B. In the money
C. Forward D. Swap
6.
An Industrial unit which offers entire production for export is called
A. EOU B. Industrial estate
C. EPZ D. FTZ
Q.1 (b) 1.In the money option
2.Arbitrage
3.Purchasing power parity
4. Options
04
Q.1 (c) What are the factors affecting cross border merger and acquisition? 04
Q.2 (a) Define Future Contract and explain the difference between Forward
Contract and Futures Contract?
07
(b) Explain the role of WTO in international Business? 07
OR
2
(b) How does Export and Import bank of India help the exporters? 07
Q.3 (a) What is Exposure? Explain the types of exposure in international business? 07
(b) What are multinational corporations (MNCs) and what economic roles do
they play?
07
OR
Q.3 (a) Which factors should be considered by an investor before investing in
another country?
07
(b) Explain the types of services provided by International Banks to their
customers?
07
Q.4 (a) Explain Balance of payment? Discuss its implications under the fixed and
flexible exchange rate regime?
07
(b) If the interest rate in US is 10%, in Japan the comparable rate is 7%. The
spot rate for the yen is $ 0.0038.If the interest rate parity holds, what is
90day forward rate?
07
OR
Q.4 (a) An investor wishes to buy euro spot (at $0.9080) and sell euros forward for
180 days (at $0.9146).
1. What is the swap rate on euro?
2. What is the premium on 180-day euros?
07
(b) What is Transaction Exposure? Explain in detail with example. 07
Q.5 Suppose the spot quote on the Deutsche mark is $0.3302-10 and the spot
quote on the French Franc is $0.1180-90
a. What is the direct quote for the franc in Frankfurt?
b. Compute the percentage bid-ask spread on the DM and franc.
14
OR
Q.5 Explain the objectives of Cash management. If an Indian Company has to
manage its cash which factors should be considered?
14
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This post was last modified on 19 February 2020