B.Com In Banking & Insurance (BCBI) Sem V April 2024 April 2024 International Banking and Finance Question Paper - Mumbai University | munotes

Questions asked in this paper

• 3) Figures to the right indicate full marks

1. Q1 A) Multiple Choice Questions (Any’8) 8 marks
   • (i)Broad measure of a country’s international trade in goods.and services are called
   • a.current account
   • b.capital account,
   • c.trade account is an international reserve asset, created by the IMF in supplement its term movement of capital
   • c.Call money
   • (iv)The main risk associated with domestic bonds is the risk of
   • a.Bankruptcy
   • b.Obsolescence
   • c.Exchange
   • (v)__ is a foreign exchange rate quoted as the
   • a.Direct quote
   • b.Indirect quote
   • c.Inverse quote is the smallest unit by quotation
   • a.PIP
   • b.SIP
   • c.DIP risk of an exchange rate changing between the transaction date and the subsequent
   • b.Economic
   • c.Translation process through which the treasurers try to reduce/eliminate the loss that may result from an adverse movement of
   • (ix)The crypto transactions-are verified by network nodes and recorded in a public distributed ledger called as
   • a.Mine
   • c.Cryptograph
   • (x)A Letter of Credit that be used for multiple transactions where the credit limit is not fixed letter of credit
   • a.revolving
   • c.revocable
2. Q1 B)State whether the following statements are True or False: (Any seven) 7 marks
   • (1)Globilsation has increased the trend of Multi-National Companies in all over the world foundation of the gold standard is value is supported by some weight in
   • (iv)Net FDI inflow can never be negative
   • (v)Foreign exchange market is 24
   • (vi)Geographical arbitrage refers to buying a currency it is cheapest and selling it where it is dearest to make a profit from the difference in rates
   • (vii)Speculators attempt to make loss from rising and falling prices right to buy is a call; the right to sell, a put
   • (ix)Trade between companies.in two different countries is called’as internal trade
   • (x) Every bank individually enters into agreement-with the borrower in case of a syndicated loan
3. Q2 a)Distinguish between Fixed exchange Floating exchange rate system. 8 marks
   • b.Distinguish between FDI and 7
4. Q2 c.Distinguish between ADR and GDR. 8 marks
   • d.Explain advantages of Gold Standard System. 7
5. Q3 a. Distinguish between FERA and FEMA. 8 marks
   • b.Explain meaning and features banking. 7
6. Q3 c.Explain features of foreign exchange market. 8 marks
   • d.Explain loan syndication. methods of making international payment. (08) 7
   • b.Explain risk management through hedging. the forward buying and selling rates from the following information: (08) 7
   • (a)One month 1100/1000
   • (b)Two month 1300/1200
   • (c)Three months 1500/1400
   • (d)Four months 1600/1550 following quote - USD/CAD _1.1670/1.1690, find mid-rate, spread, spread percentage and inverse quote, (07)
7. Q5 a.Explain types of letter of credit.in detail. 8 marks
   • b.Write a detailed note on-capital account convertibility. Write short any three: (15) 7
   • 1.Components of BOP
   • 3.Types of risk of country risk

Read from the scan above, so a character or two may differ. The scan is the original.