Department of Management Studies

INTERNATIONAL FINANCIAL MANAGEMENT

(4EH)

Model Examination

Class: II MBA Batch: 2022-2024 Academic Year: 2023-2024

Time: 3 Hrs Date: Maximum: 50 Marks

Answer all the Questions

Section A (1*10)

1. What is the objective of Financial Management?

a) To minimize the risk
b) To minimize the owner’s Wealth
c) All of the above
d) None of the above.

2. _________estimates that attempt to predict exchange rates over any period of time
a) Option Market
b) Balance of Payment
c) Currency Forecasting
d) None of the Above

3. The method by which countries measure all of the international monetary transactions
within a certain period is.
a) Bills of Exchange
b) Currency Future
c) Balance of Payments
d) Call and Put Option
4. The ________may refer to the single market and free-trade among European Union (EU)
countries.
a) American Market
b) Euro Market
d) Metropolitan Market
e) None of the above
5. ________ is when a domestic investor decides to purchase ownership of an asset in a
foreign country.
a) International Trade
b) Direct Investment
c) Indian Trade
d) Foreign Investement
6. __________refers to the investment made by foreign entities, such as individuals or
corporations, into a domestic economy.
a) Foreign Indirect Investment
b) Foreign Direct Investment
c) Foreign Portfolio Investment
d) Foreign Investment
7. Foreign Exchange Management Act came in to force on_________.
a) 1990
b) 1991
c) 2000
d) 2002
8. A ________is a long-term plan that outlines clear goals for a company.
a) Operation Strategy
b) Marketing Strategy
c) Corporate Strategy
d) None of the above
9. From the following which is not a features of balance of payment.
a) Systematic record
b) All Transaction
c) Single entry
d) Double entry
10. More instability in currency is called as
a) Country risk
b) Financial risk
c) Currency risk
d) Liquidity risk
 Section B (3*5=15)

11. a) Write a short note on International financial market.

Or
b) What is Euro Market? What are the characteristics of it?
12. a) Define short term assets management?
Or
b) What do you mean by foreign exchange Management?
13. a) Write a Short note on International Monetary fund?
Or
b) Highlight the components of balance of payment.
14. a) Highlights the importance of working capital management.
Or
b) List out the Source of Short term finance.
15. a) Define Short term asset management?
Or
b) What do you mean by Foreign Exchange Management?

Section C (5*5=25)

16. a) Critically analyses the factors influencing exchange rates.

Or
b) Outline in detail about measuring and managing economic exposure.
17. a) Explain the different derivatives instruments which help to hedge the currency risk.
Or
b) Explain different types of foreign exchange risk.
18. a) Elucidate how funds are raised by multinationals through capital markets.
Or
b) Enumerate the methods used in Capital budgeting.
19. a) Explain the challenges in multinational financial system in detail.
Or
b) Explain the motives and theories of FDI.
20. a) List of the four components of working capital management.
Or
b) What are the factors affecting multinational capital budgeting?

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