UNIT 1

Global Financial Environment

(2 Marks )
1. What is international Monetary System?
2. What is international Finance?
3. What is Fixed Exchange Rate?
4. What is Floating Exchange Rate?
5. What is Global Innovation?
6. Expand IMF and IMS.
7. What is fluctuating exchange risk?
8. What is FERA? What are the objectives?
9. Mention the 2 reasons of Globalization.

5 marks
10. Briefly explain the importance of international finance.
11. Write the structure of IMF.
12. What are International Financial Markets? What are the benefits?
13. What are the 4 advantages of Globalization?
14. Distinguish between domestic Finance and International Finance?
15. Purpose of IMF. Distinguish between International Monetary Fund and world bank
16. Discuss the role of IMF in international business.
17. Explain the scope of International Finance.
18. Explain briefly advantages of fixed rate system

15 marks
19. What is Bretton Woods System? Explain the design and Collapse of Bretton woods System.
20. What are the forms of foreign exchange rate and what are the factors affect Foreign
Exchange Rate.
21. Explain the stages of Globalization.
22. What are the purpose of IMF? Distinguish between IMF and World Bank.
23. Advantages of Globalization.
24. Explain in details issues of International Finance.
25. Explain the issues in International Finance.
26. State the 4 stages of Development of IMS.
27. Write a note on Bretton woods system

UNIT 2 and 3
International Financial Decisions
Exchange Rate Determination
2 marks
1. What is international portfolio?
2. What is international finance?
3. Define ADR/GDRs/ECBs/FCCBs.
4. What is PPP Theory?
5. Explain the fluctuating exchange rate
6. What is interest Rate Parity Theory?
 5 Marks
1. Difference between international finance and domestic finance.
2. Explain the importance of international finance.
3. Explain the types of exchange rates.
4. What is FERA? Objectives of FERA.
5. Fixed exchange rate V/S Flexible exchange rate.
6. Explain the objectives, purpose and functions of finance system.
7. What is netting and explain the types of netting.
8. Explain the types of expectation theory.
15 marks
1. Explain factors effecting international capital budgeting.
2. Explain various tools and techniques of Foreign exchange Risk Management.
3. Explain in detail issues of International finance.
4. Explain factors Influencing financial Decisions.

Unit 4
Foreign Exchange Risk and Risk Hedging Strategies
Part A
1. What is meant by currency swap?
2. Write the meaning of money market.
3. What is Netting?
4. Define Leads and Lags.

Part B
1.bring out the difference between Future and Forward.
2. explain the types of Risk.

Part C
1. What is hedging ? explain its techniques.
2. Explain the functions and limitations of money market.
3. Advantages, disadvantages and features of forward contract.

Unit 5
Interest rate risk and Risk Hedging Strategies
Part A
1. What is meant by Interest Rate Cap?
2. Define Caps and Collar.
3. What is floor and Swaption?
Part B

1. What is Interest Rate future and option. Explain.

2. Interest Rate future and option. Explain.