B.Com In Banking & Insurance (BCBI) Sem V October 2025 October 2025 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. (Answer any Eight) 8 marks
   • 1) The artificial currency created by IMF to be issued as supplementary reserve asset is called
   • 2) International Bank for Reconstruction and Development also popularly called
   • 3) In a foreign company issues a bond denominated in a currency which is not the home ‘ currency of the investors
   • a) Foreign Bond b) Euro Bond Both of the above d) None of the above a allow foreign companies to mobilize funds from Indian Markets
   • b)ADR d) None of the above
   • 5) An act which is enacted to regulate and foreign exchange in
   • 6) Price of national in terms of foreign currency is quote
   • a) Direct b) Both of the above d) None of the above
   • 7) When a country experience its interest rates are likely to fall
   • a) Depression c) Recession d) None of the above
   • 8) Trade between companies in two different countries is called as
   • a) Domestic Trade International Trade c) Business d) None of the above
   • 9) The Bank which opens the letter of credit in favour of beneficiary is known as
   • a) Issuing Advising Bank c) Confirming Bank d) None of the above ry
   • 10) Stage is the first stage in the process of loan syndication
2. Q1 B) State whether the following statements are True or False: (Any Seven) ) International Finance is the branch of economics 7 marks
   • 5) Exchange brokers facilitate deal between banks
   • 6) Credit Risk refers to the risk that a government may default on its obligation
   • 7) The process of recording of transactions in virtual market is called as Mining
   • 8) A revocable letter of credit cannot be modified
   • 9) There is comparatively lesser risk while lending in International Market
   • 10) Asymmetric information occurs in a situation where both party in a transaction has similar
3. Q2 A) Explain advantages of International Finance. 8 marks
   • B) Distinguish between FDI and FPI 7
4. Q2 C) Discuss advantages of Eurobond 8 marks
   • D) Explain advantages and disadvantages of Gold Standard System. 7
5. Q3 A) Explain Features of Foreign Exchange Market. 8 marks
   • B) Discuss features of International Banking. 7
6. Q3 C) Distinguish between FERA and FEMA. 8 marks
   • D) Explain Risk faced by Corporates. 7
7. Q4 A) Discuss Risk faced by Banks. 8 marks
   • B) Explain different types of Letter of Credit. 7
   • C) Calculate the outright forward rate from the following information. 8
   • D) Calculate Mid Rate, inverse quote and spread with following quote:
8. Q5 A.Distinguish between Fixed Exchange Rate System and Flexible Exchange Rate System. 8 marks
   • B) Explain its advantages of FDI. 7
9. Q5 Write short notes on: (Any Three) 15 marks
   • a) Components of BOP
   • b) Role of Credit Rating Agencies
   • c) Features of Bretton Woods System
   • d) Types of Foreign Bonds
   • e) Loan Syndication

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