International Finance Important Question Bank 2012 Exam tips for International Finance Concept Questions:-
FIAT Currency
LORO account
Accommodating and autonomous transactions
Indirect quote
Types of contracts
Purchasing power parity
Price specie mechanism
Managed float
Merchant transactions
Petrodollars
Hot money
Collared bonds
IDR
FEDAI
Translation risk
Long questions
What are the factors affecting the BOP situations
How can a central bank take corrective actions to solve the imbalance in BOP
What factors led to the development of Euro Currency market
Explain in details the GDR issue procedure
What is SDR and how can it help in correction on BOP
Explain the various methods of hedging
Role of IMF
Case study:- Case study can be expected on the following topics
Convertibility of rupee
European debt crisis
Depreciation of rupee and the effect of the same on Indian economy
Numerical questions:-
Cross rates
Direct and indirect quote
2 way and 3 way arbitrage
PPP
Forward rates- broken dates
AFM
Interest rate arbitrage
Borrowing and lending decisions.
Please note:-
The above mentioned questions are a must do for all however they should not be considered as the only questions. Students are requested to go through the entire curriculum and concentrate on the above mentioned questions
Concepts questions need to be written in points with not a too detailed elaboration. Relevant real life examples would help you get more marks
Students are requested to attempt all the numerical questions which would roughly carry around 25 marks since correct numerical questions would give a student full marks
Case study though would be given, however the concept clarity and real life examples only would help the students score good marks.
DO NOT TAKE UNDUE PRESSURES. ALL THE BEST
Content courtesy:- Prof. Vipin Saboo
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