C

TILAK MAHARASHTRA VIDYAPEETH, PUNE

MASTER OF BUSINESS ADMINISTRATION (M.B.A.)
EXAMINATION :MAY : 2017
FOURTH/THIRD SEMESTER
Sub: International Financial Management (MFM-15303/ MFM-411)
Date: 19/05/2017 Total marks: 60 Time: 2.00 pm to 4.30 pm
SECTION - I
Q.1 Fill in the blanks. (5)
1. Market selection, pricing are Market Strategy.
a) True b) False
2. Exemptions of law of one price.
a) No Transportation cost b) No Taxes
c) Faster execution d) No intermediary
3. Forwards is one of the _________Hedging Technique.
a) Internal b) Future c) External d) Domestic
4. ________results when the domestic currency of assets, liabilities or operating incomes
becomes variable in response to unexpected changes in exchange rates.
a) Foreign exchange market b) Foreign exchange risk c) Foreign exchange mechanism
d) Foreign exchange rate
5. _______are formed by geographically close countries, and revolve around a small group
of larger economies.
a) Market place b) Trading blocks c) Economic union d) Global economy
Q.2 Answer the following. (Any Two) (20)
1. What do you understand by the term 'Increasing Interdependence in the global
economy'?
2. Explain 'Balance of Payments'.
3. What is 'Forward Exchange Contract'?
4. Write in brief about 'purchasing power parity principle'.
Q.3 Write notes on. (Any Two) (10)
1. Floating exchange rate system.
2. World Bank.
3. Transaction Exposure.
SECTION - II
Q.4 Case Study:- From the data given below calculate forward premium or discount, as the (15)
case may be, of the £ in relation to the rupee with respect to a sale & bid price.
Re/£
Spot Rs. 77.9542/78.1255
1 month forward Rs. 78.2111/4000
3 months forward Rs. 77.6055/.7555
6 months forward Rs. 78.8550/9650
Q.5 Answer the following. (10)
a) Explain 'American vs. European Quote' and 'Direct vs. Indirect Quote'.
OR

b) Write in brief about 'Forward rates vs. Expected spot rates'.

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International Financial Management (MFM-15303/MFM-411) AFD/I 1/1