B.Com In Investment Management SEM V 2023 2024 Dec 2024 INTERNATIONAL FINANCE I Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 A) Match the following options correctly (Any Eight)
   • 1. International a. LIBOR
   • 3. International c. Financial institute/international investment bank in
2. Q1 B) State whether the following statements are True or False (any Seven)
   • 1. International Finance concerns transnational and cross-national transactions with
   • 2. Currency Crisis is not a challenge to International Finance
   • 3. Cost of Capital is the maximum rate of return that a business must earn before generating
   • 4. Capital Budgeting is the process of calculating the present value of the firm
   • 5. Depository Receipts are negotiable instruments
   • 6. The time period of Cooling-Off Period is 80 days
   • 7. Restricted ADRs are Sponsored ADRs
   • 8. The paid up capital for IDR is Rs. 1,000 Million
   • 9. Bond issued, underwritten and traded with the currency and regulations of the borrower’s country is called as Foreign Bonds
   • 10. Credit risk is loss of purchasing power of a currency
3. Q2 Attempt with A&B or C&D 15 marks
   • A. Define the term International Finance. List out the various challenges faced in
   • B. What do you mean by International Mergers and Acquisitions? Write a brief note about the trends and characteristics of Cross Border Mergers and Acquisitions?
   • C. What do you mean by “Capital Explain the process of capital budgeting
   • D. Critically evaluate the why firms engage in cross-border mergers and acquisitions
4. Q3 Attempt with A&B or C&D 15 marks
   • A. Explain in detail the various types instruments as seen in International Money Market
   • B. Describe the complete process of Global Depository Receipts (GDRs) issue
   • C. Write a brief note about the emerging Stock Markets in the world
   • D. What do you mean “Depository Receipts”? Explain the different types of American
5. Q4 Attempt with A&B or C&D 15 marks
   • A. What is “Eurocurrency Markets”? What are the different types of Eurocurrency Markets
   • B. What do you mean by “International Bond What are the different types of risks associated with investing in Bond Markets?
   • C. What are the factors responsible for the growth of Eurocurrency Markets?
   • D. Differentiate between Foreign Currency Convertible Bonds and Foreign Currency
6. Q5 Attempt with A&B or C 15 marks
   • A. What are the different types of Investment Risk and Market Risk?
   • B. Explain the following obstacles to International Investment:
   • 1) Taxation
   • 2) Information Barriers
   • C. Choose any 03 (any three) of the following (5m*3=15m) Cost of Capital
   • iv. Participatory Notes
   • v. Political Risks as an obstacle to International Investment

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