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DRIVE-Fall 2014
PROGRAM-MBADS (SEM 4/SEM 6)
MBAFLEX/ MBAN2 (SEM 4) PGDFMN (SEM 2)
SUBJECT CODE & NAME-IB0010 & INTERNATIONAL FINANCIAL MANAGEMENT
BK ID-B1759
CREDIT & MARKS-4 Credits, 60 marks
Q1. Write short notes on:
a) Measuring exchange rate movements
b) Factors that influence exchange rates
(Measuring exchange rate movements, Factors that influence exchange rates)5,5
Answer.
a) Measuring exchange rate movements
The movement of exchange rates is the result of the combined effect of a number of factors that are constantly at play. Economic factors, also called fundamentals, are better guides as to how a currency moves in the long run. Short-term changes are affected by a multitude of factors which may also have to be examined carefully. Changes in one nation's economy are rapidly transmitted to that nation's trading partners. These fluctuations in economic activity a
Q2. The key component of the financial system is the money market that acts as a fulcrum of monetary operations. Write down the important points under each category mentioned below.
a) Functions performed by money market
b) International interest rates
c) Standardized Global Market regulations.
(Explanation of important points of functions performed by money market, Explanation of international interest rates, Explanation of standardized global market regulations)3,3,4
Answer.
a) Functions performed by money market
There are three broad functions that are performed by the money market.
1. For the demand and supply of short term funds, the money market provides an equilibrating mechanism.
2. It helps the lenders and the borrowers of the short term funds in fulfilling the borrowing and investment requirements at a competent market clearin
Q3. Thousands of years back the concept of bartering between parties was prevalent, when the concept of money had not evolved. Explain on counter trade with examples
(Introduction of counter trade, Explanation of Different forms of counter trade, Examples) 3, 5, 2
Answer.
Counter trade
When the concept of money had not evolved. A person could give say 100 bags of wheat and get wood or coal, a certain quantity for cooking. These bartering contracts were between individuals or small kingdoms. Bartering exists today also but at different level. For example, Iran may give 100 million barrels of oil to France and get 5000 guns of certain type in exchange. We can say that bartering is exchange of goods between parties as per agreed terms without the use of money.
Today, most business is transacted with money as mediu
Q4. There are different techniques of exposure management. One is the Managing Transaction Exposure and the other one is the managing operating exposure, So you have to explain on both Managing Transaction Exposure and Managing Operating Exposure.
(Explanation of Managing transaction exposure, Explanation of Managing operating exposure )5,5
Answer.
Managing transaction exposure
Transaction exposure calculates gains or losses which occur after the current financial compulsions according to terms of reference are resolved. Taken that the deal would lead to a future inflow or outflow of foreign currency cash, any unprecedented alterations in rate of
Q5. Every firm is going on concern, whether domestic or MNC. Explain the techniques of capital budgeting and the steps to determine cash flows.
(Explanation of techniques of capital budgeting-NPV, IRR , PI , Payback period, Determination of cash flow)5,5
Answer.
Techniques of capital budgeting-NPV, IRR , PI , Payback period
There are many techniques which can be used to analyze the projects. These techniques can be broadly classified into discounted cash flow techniques, which include net present value (NPV), internal rate of return (IRR), profitability index (PI) and discounted payback methods, and non-discounted cash flow techniques which include payback and accounting rate of return (ARR) methods. The most
Q6. Write short note on:
a) American Depository Receipts(ADR)
b) Global Depository Receipts(GDR)
(Explanation of ADR, Explanation of GDR) 5, 5
Answer.
American Depository Receipts(ADR)
It represents ownership in the shares of a non-US company and trades in the American stock markets. ADRs enable American investors to buy shares in foreign company without any issue of cross-border and cross-currency transactions. ADRs carry price in
Get fully solved assignment, plz drop a mail with your sub code
computeroperator4@gmail.com
Charges for mba rs 125/subject and rs 700/semester only.
For other rs 125/subject only
if urgent then call us on 08791490301, 08273413412
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