B.Com In Banking & Insurance (BCBI) Sem V 2018 19 Nov 2018-19 INTERNATIONAL BANKING FINANCE Question Paper - Mumbai University | munotes

Questions asked in this paper

• Note : Figures to the right indicate full marks

1. Q1 A) Multiple Choice Questions (Any 8) 8 marks
   • a. is determined by the national governments involved
   • b. remains extremely stable over long periods of time
   • c. 1s determined by the actions of central banks
   • d. is allowed to vary according to market forces
2. Q2 LIBOR rates are used to reflect term interest rate across the globe
   • a. Short b. medium c. long d. federal bank’s
3. Q3 In the case of offering, the bonds convert into shares of the company that issued the bonds
4. Q4 The risk that a government may default on its debt obligation is
5. Q5 allow foreign companies to mobilize funds from Indian Markets
6. Q6 is where you can buy and sell a currency, at a fixed future date for a pre 7.RBI and issue guidelines to all banks regarding risk to
   • a. identify b. measure c. manage d. all of the above
7. Q8 Price of national currency in terms of foreign currency is quote 9.Under a gold standard nation’s currency can be traded for gold at a fixed rate
   • b. new discoveries of gold have no effect on money supply or prices
   • c. Nation’s central bank of monetary authority has absolute control over its money apply
   • d. None of the above
8. Q10 Undertaking given by the importer’s bank to make payment to exporter’s bank on default of the importer is called as
   • a. Letter of credit b. Letter of intent d. Promissory Note
   • B) State True or False (Any 7) 7
9. Q1 Any offence under FERA may result in imprisonment
10. Q2 Systematic risk is a type of uncertainty comes with the company or industry one invests in and can be reduced through diversification
11. Q3 There is comparatively lesser risk while lending in international market
12. Q4 FCNR account is free from currency risk
13. Q5 BSE Sensex includes the 50 largest and most actively traded stocks on BSE
14. Q6 A dirty float occurs when a nation used central bank intervention in forex market to promote a depreciation of its currency’s exchange value
15. Q7 International Monetary Fund which was given the task of implementation and monitoring of gold standard
16. Q8 Arbitrage involves the simultaneous buying and selling of the asset in order to profit from small differences in prices
17. Q9 Bid rates denote the number of units of a currency a bank is willing to pay when it
18. Q10 Increase in interest rate causes a country’s currency to appreciate
19. Q2 A) What are advantages and disadvantages of fixed exchange rate system? 8 marks
    • B) Explain the factors responsible for the growth of Euro Currency market. 7
20. Q2 C) Explain the concept of Offshore Banking with reference to India. 8 marks
    • D) What is risk management? State the risks faced by banks. 7
21. Q3 A) What is loan syndication? Explain phases of loan syndication. 8 marks
    • B) Explain the role of central banks in international banking and business. What are different types of letter of credit? (8) 7
    • D) Write a note on Special Drawing Rights. 7
22. Q4 A) What is ADRs? Explain its levels. 8 marks
    • B) What are different types of country risk? 7
23. Q4 C) Calculate the out right forward rate from the following information. 8 marks
    • D) Calculate inverse quote, mid rate and spread and spread percentage. 7
24. Q5 A) What is international banking? Explain its features. 8 marks
    • B) Distinguish between FDI and FII 7
25. Q5 Write short notes on: (Any 3)
26. Q1 Features of Forex Market
27. Q2 Components of BOP
28. Q4 Export Finance
29. Q5 Participatory Notes

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