DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, MAY 2018.
Third Semester
FOREIGN EXCHANGE MANAGEMENT
(Upto 2012-13 Academic Year and 2013 Calendar Year)
Time Three hours Maximum 100 marks
SECTION A — × 8 40 marks)
Answer any FIVE questions.
All questions carry equal marks.
1. What are the functions of foreign exchange market?
2. What is the concept of nominal effective exchange rate
and real effective exchange rate?
3. What are the types of option contracts?
4. Differentiate between transaction exposure risk and
economic exposure risk.
5. Write a note on: Currency Accounts.
6. What do you mean by rupee convertibility? What is
partial and full convertibility?
7. Analyze the foreign exchange trends in India.
8. What are the distinguishing features of currency swaps?
Sub. Code
34
DE-3813
WSS
2
SECTION B — × 15 60 marks)
Answer any FOUR questions.
All questions carry equal marks.
9. Discuss the main transactions in the foreign exchange
market.
10. Explain Interest rate parity and reasons for deviations.
11. Write a detailed note on classification of forward
contracts with examples.
12. Discuss external techniques of managing transaction
exposure risk.
13. Discuss the need and forms exchange control.
14. Explain any one of the approaches to forecasting of
exchange rates.
15. A Mobile phone is priced at 10500 at Chicago. The same
mobile phone is priced at Rs. 4,250 in Delhi. Determine
Exchange Rate in Delhi. If, over the next one year, price
of the Mobile phone increases by in Delhi and by
in Chicago, determine the price of the mobile phone at
Delhi and Chicago?
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