B.Com In Banking & Insurance (BCBI) Sem V March 2026 March 2026 International Banking and Finance Question Paper - Mumbai University | munotes

Questions asked in this paper

• 2) Figures to the right indicate full marks

1. Q1 A) Multiple Choice Questions (Any 8) 8 marks
   • 1. Convertibility refers to
   • a) Gold exchange
   • b) Free conversion of currency
   • c) Inflation control
   • d) Capital control
   • a) Gold Standard
   • b) Bretton Woods
   • a) Long term
   • b) Short term investment
   • c) Government grant
   • d) Loan
   • 4. IDR 1s issued in
   • b) India
   • c) Japan
   • 5. Wholesale forex
   • a) Small traders
   • b) Banks & institutions
   • c) Individuals
   • d) Tourists
   • 6. Direct
   • 7. Settlement risk
   • a) Herstatt risk
   • b) Inflation risk
   • c) Default risk
   • d) Political risk = Swap is combination of
   • a) Spot & Future
   • b) Spot & Forward
   • c) Two forwards
   • d) Option & Forward
   • 9. NRE account is maintained in
   • a) Foreign currency
   • b) Indian Rupees
   • c) Gold
   • a) Single lender
   • b) Multiple lenders
   • c) RBI only
   • d) IMF only
2. Q1 b State whether the following statements are True or False: (Any 7) 7 marks
   • 3. Euro bonds are issued in domestic currency
   • 4. ADR holders have voting rights always
   • 5. FEMA is regulatory framework
   • 7. Gap risk arises due to maturity mismatch
   • 8. Futures are customized contracts
   • 9. Export finance is pre and post shipment
3. Q2 A) Explain Gold Standard — features and defects. 8 marks
4. Q2 B) Explain International Bond Market and types of bonds. 7 marks
5. Q2 D) Explain Bretton Woods System and reasons for failure. 7 marks
6. Q3 A) Explain Foreign Exchange Arithmetic — Direct, Indirect & Cross Rates. 8 marks
7. Q3 B) Explain International Payment Systems & Correspondent Banking. 7 marks
8. Q3 C) Explain Arbitrage — Geographical, Triangular & Interest Rate (formula). 8 marks
9. Q3 D) Explain Internal & External Hedging techniques
10. Q4 A) Explain Country Risk Management. 8 marks
11. Q4 B) Explain Export and Import Finance. 7 marks
12. Q4 C. Calculate forward rates of GBP to Rupee for various maturities based on the following Calculate Mid, Spread, Spread % and Inverse Rate. (7)
13. Q5 A) Explain Transaction, Translation and Economic Risk. 8 marks
14. Q5 B) Explain Loan Syndication and risks in International Lending. 7 marks
15. Q5 Write short notes on any three: 15 marks
    • 1. Eurocurrency Market
    • 3. NRI Accounts
    • 4. Participatory Notes
    • 5. Managed Float

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