Name of the University : Uttarakhand Open University
Degree : M.B.A
Department : Financial Management
Subject Code/Name : FM2108 International Finance
Year : II
Semester : IV
Document Type : Old Question Papers
Website : uou.ac.in
Download Model/Sample Question Paper : https://www.pdfquestion.in/uploads/uou.ac.in/4338-FM-2108.pdf
International Finance :
Fourth Semester, Examination 2012
Time : 3 Hours
Maximum Marks: 60
Related : Uttarakhand Open University FM2107 Project Planning, Analysis & Management M.B.A Question Bank : www.pdfquestion.in/4336.html
Note : The question paper is divided into three sections A,B and C.
SECTION – A
(Long-answer – type questions)
Note : Section ‘A’ contains four (04) long-answer-type questions of fifteen (15) marks each. Learners are required to answer two (02) questions only. (2×15=30)
Q- 1 (A) Discuss the distinguishing features of international finance.
(B) What factors cause some firms to become more internationalized than others?
Q-2 The IMF has been criticized by many for its alleged mishandling of the South-East Asian crisis. Comment on the role of the IMF in this regard.
Q-3 How should an MNC reduce its foreign exchange risks?
Q-4 Can a Company use the hedging techniques to protect itself against expected exchange rates changes? Explain.
SECTION – B
(Short – answer – type questions)
Note : Section ‘B’ contains eight (08) short- answer type questions of five (05) marks each. Learners are required to answer four (04) questions only. Answers of short answer-type questions must be restricted to two hundred fifty (250) words approximately.
Q- 1 Describe the constraints that interfere with the MNCs objective.
Q- 2 What are the role and functions of the IMF-
Q- 3 What are the implications and uses of the balance of payments
Q- 4 Explain three important financial derivative instruments.
Q-5 Should an exporter use the spot rate or forward rats for Quotation-
Q- 6 Differentiate between transaction and economic exposure.
Q- 7 Discuss how an MNC can calculate its cost of equity capital-
Q- 8 How can an MNC use transfer pricing strategies- Elucidate.
SECTION – C
Note : Section ‘C’ contains ten (10) objectives –type questions of one (01) mark each. Learners are required to answer all the Question.. (10×1=10)
Write True/False against the following.
Q- 1 World markets today are highly perfect.
Q- 2 The IMF and World Bank were born out of Bretton Woods Conference held in 1944.
Q- 3 The balance of payments confirms to the principle of double entry bookkeeping.
Q-4 Exchange rate in American terms, expresses the home currency price of one unit of the foreign currency.
Q- 5 Interest arbitrage is usually uncovered as investors of short-term funds abroad generally want to avoid the foreign exchange risk.
Q- 6 Transaction risk is not critical to an MNC due to the high variability in exchange rates.
Q-7 Economic exposures can be minimized by credit swap.
Q-8 The IMF defines foreign investment as FDI when the investor holds 10% or more in the equity of an enterprise.
Q-9 Leading and lagging strategy optimize cash flow.
Q- 10 Eurocurrency market is essentially regulated.
Fourth Semester Examination-2015 :
FM-2108 International Finance :
Section – A : (Long Answer Type Questions)
Note : Section ‘A’ contains four (04) long-answer-type questions of fifteen (15) marks each. Learners are required to answer any two (02) questions only. (2×15=30)
1. Explain the changing international monetary system. What lessons can an economist draw from the current international monetary system?
2. What are the key factors contributing to an effective cash management system within the firm? Is the cash management process more difficult in an MNC? Why.
3. What are the factors that motivate foreign direct investment in the host country?
4. What is Foreign Exchange Market? What are the main functions of foreign exchange market? Explain.
Section – B : (Short Answer Type Questions)
Note : Section ‘B’ contains eight (08) short-answer-type questions of five (05) marks each. Learners are required to answer any four (04) questions only. (4×5=20)
Briefly discuss any four (04) of the following :
1. Discuss the challenges and opportunities before an MNC.
2. Discuss the major government initiatives for increasing FDI in India?
3. Discuss the location specific advantages of Internationalization.
4. Why should cost of capital for an MNC be different from a domestic firm?
5. Briefly discuss the distinguishing features of International Finance.
6. Bring out the differences between domestic and international financial management.
7. Elucidate the statement of transaction in the international market.
8. What is Euro Dollar market? Analyse its features and functions.