B.B A. (Three Year) DEGREE EXAMINATION, OCTOBER/NOVEMBER 2017.
End Semester Examination
Fifth Semester
(Regular Supplementary)
Paper V FOREIGN EXCHANGE MANAGEMENT
2 C 5405-B
Time 3 Hours Max. Marks 70
PART — A
Answer any FIVE of the following questions. 4 20 Marks)
1. Relationship between forex management and financial.
2. Dual currency.
3. How to make foreign payments?
4. Forward and cross exchange rates.
5. Bills of exchange.
6. Cost associated with international payments.
7. Integration of markets.
8. Euro deposits.
PART — B
Answer ALL the following questions. 10 50 Marks)
UNIT I
9. Explain the nature and scope of foreign exchange management.
Or
List out the objectives, significance and scope of forex management.

UNIT II
10. In What way international capital and money markets are useful in forex
management?
Or
Write a brief note on GDRs, DRs and Euro Bonds.
UNIT III
11. What do you mean foreign exchange market? Also state its main functions.
Or
What is arbitrage? State the role of arbitrage in foreign exchange market.
UNIT IV
12. Explain the concept of forex rate? List out its determinants.
Or
Enumerate the relationship and inter-relationship between forex trading and
financing of international trade.
UNIT V
13. Attempt the following:
Offshore banking
Letter of credit.
Or
What is Hedging? Explain forex Risk Hedging Techniques briefly.
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