DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, DECEMBER 2017.
Fourth Semester
FOREIGN EXCHANGE MANAGEMENT
(2013-14 Academic Year 2014 Calendar Year Onwards)
Time Three hours Maximum 100 marks
SECTION A — × 8 40 marks)
Answer any FIVE questions.
1. Explain the concept of foreign exchange.
2. What are cross rates? How are they determined?
3. State briefly interest rate parity theory.
4. Narrate the types of option contracts.
5. Write a brief note on exposure setting and offsetting.
6. Analyse the economic consequences of exchange rate
changes.
7. State the recent trends in foreign exchange reserves of
India.
8. Narrate the different kinds of account in foreign
exchange.
Sub. Code
42
DE-3254
2
Ws6
SECTION B — × 15 60 marks)
Answer any FOUR questions.
9. Discuss the significance of foreign exchange.
10. Critically examine purchasing power parity theory.
11. Enumerate the factors affecting forward rates.
12. Explain how economic exposure risk is managed.
13. Argue favouring and against fixed exchange rate.
14. Examine the monetary and fiscal policy initiatives for
exchange rate management.
15. Write an elaborate note on FOREX market and its
organisation structure.
————————