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Finance Management

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Finance Management
Examination Paper: Finance Management IIBM Institute of Business Management Examination Paper International Financial Management Section A: Objective Type (30 marks)  This section consists of Multiple choice & Short Answer type questions.  Answer all the questions.  Part One questions carry 1 mark each & Part Two questions carry 5 marks each. Part One: Multiple choices: 1. Foreign exchange market in India is relatively very a. Big b. Small c. Medium d. None of the above 2. Balance of payment is a systematic record of all _______ during a given period of time. a. Political transactions b. Social transactions c. Economic transactions d. None of the above 3. Merchandise trade balance, services balance & balance on unilateral transfer are the part of ________ account a. Current account b. Capital account c. Official account d. None of the above 4. Interest rate swaps can be explained as an agreement between _________ parties a. One b. Two c. Three d. None of the above 5. Capital account convertibility in India evolved in August a. 1996 b. 1995 c. 1994 d. None of the above MM.100

1 IIBM Institute of Business Management

Examination Paper: Finance Management 6. Interest rate parity is an economic concept, expressed as a basic algebraic identity that relates a. Capital rate & interest rate b. Interest rate & exchange rate c. Currency rate & exchange rate d. None of the above 7. The two kind of swap in the forward market are a. Forward & reverse swap b. Reverse swap & option swap c. Forward & option less swap d. Forward swap & option swap 8. FEMA stands for a. Forward exchange market b. Future exchange market c. Foreign exchange management act d. None of the above 9. Exchange rate quotation methods are a. Direct and direct b. Indirect and indirect c. Direct and indirect d. None of the above 10. International Fisher effect or generalized version of the Fisher effect is a combination of a. PPP theory and Fisher’s open proposition b. Fisher’s open and closed

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