B.Com In Banking & Insurance (BCBI) Sem V 2022 2023 Dec 2023 I 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.When a country experiences , its interest rates are likely to fall
   • 2.The artificial currency created by IMF to be used as supplementary Reserve Asset is
   • 3.GDRs can be converted into shares. Shares can be converted into GDRs. This is called (Two way fungibility, no way fungibility, four way fungibility) minimum investment required in the IDR issue by the investors has been fixed at by SEBI
   • 5.An act, which is enacted to regulate payments and foreign exchange in
   • 6. If the bid points are lower (than the ask points), the spot rate has to be made to arrive at the
   • 7. The electronic payment system through which forex remittances are made is
   • 8. Pre-shipment finance is also called credit
   • 9. is where you can buy and sell a currency, at a fixed future date for a pre-determined rate
   • 10.Foreign exchange risk management is also known as the
2. Q1 B) State True or False (Any 7) 7 marks
   • 1. Balance of payments reflects the country’s capacity to provide material requirements of the
   • 2. A decrease in an interest rate causes depreciation of the currency
   • 3. Net FDI inflow can never be negative
   • 4. Domestic bonds are normally designated in the local currency
   • 5. Exchange brokers facilitate deal between banks
   • 6. A Price interest point (PIP) is the smallest unit by a currency quotation can change
   • 7. Speculators attempt to make loss from rising and falling prices
   • 8. Micro factors existing within a firm lead to country risk
   • 9. Trade between companies in two different countries is called internal trade
   • 10. A foreign banks in India can enter only as a wholly owned subsidiary
3. Q2 a.Explain prospects for India in developing offshore banking units in India. 8 marks
4. Q2 b.Explain principles of international finance. 7 marks
5. Q2 c.Explain meaning and components of BOP. 8 marks
6. Q2 d.Distinguish between ADR and GDR. 7 marks
7. Q3 a.Explain in detail characteristics of Foreign Exchange Market. 8 marks
8. Q3 b.What is Risk Management? Also explain risks faced by banks. 7 marks
9. Q3 c. Explain in features of International banking. 8 marks
10. Q3 d.Explain functions of FEDAT in detail. 7 marks
11. Q4 a.Explain advantages of Crypto Currency in detail. 8 marks
12. Q4 b.Explain reasons for Internationalization of Banks. 7 marks
13. Q4 c. Calculate the forward buying and selling rate from the following information. inverse rate, spread, mid-rate, spread % of GBP/INR 8 marks
14. Q5 a. Explain types of foreign exchange quotations. 8 marks
    • O.5.b.Explain meaning and types of Letter of credit. 7
15. Q5 C) Write short notes on: (Any 3) 15 marks
    • 1. Foreign bonds
    • 4. Crypto Currency

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