JAYAMUKHI INSTITUTE OF TECHNOLOGICAL SCIENCES

(autonomous)
Narasampet, Warangal – 506 332.
MBA IV Semister II mid Examinations
SUB : AJBMEF30- INTERNATIONAL FINANCIAL MANAGEMENT
Max Marks – 40
Part A (5X2=10)
Answer the following questions
1. What is FCCB?
2. Explain the features of EXIM Bank.
3. What is Currency Option contract?
4. What s APV approach?
5. What is ECB?

Part B (2X10=20)
Answer any any two of the following questions.
1. What is Eurocurrency market? How do Euro currency loan differ from Euro Bonds?
2. From the following rates determine Rs./Canadian $ exchange rates.
Rs/US$ : 47.7568/47.9675
Can $/Us $ : 1.5142/1.5450
3. What is FDI? Explain the recent FDI’s welcomed by India in various sectors.
4. An Indian has borrowed $1 million at5% from US market for two years, the Indian
company has covered its debt exposure on forward market. The rate are as follows.
Spot rate – Rs.48/US$
1 year forward – Rs.52.50/US$
2 year forward – Rs.56/US$
Interest to be paid annually, the principal amount will be paid at the end of 2 years, tax rate
is 35%.
What is effective kd(cost of debt)?
Case Analysis (compulsory) - 10 Marks
5. The expected inflation rate in india is 8% the current spot rate between Indian Rupee and
South Korean Won is Won 1.4568/INR and one year forward rate is Won 1.2567, how
much is the expected inflation rate in South Korea.