MMPF-005 International Financial Management Solved Question Paper December 2023

MMPF-005 International Financial Management Solved Question Paper December 2023

International Financial Management
Course Code: MMPF-005

1. What do you understand by international
liquidity ? Explain the role of SDR in this
regard and describe the funding facalities
provided by International Monetary Fund
(IMF) to member countries.
[ 2 ] MMPF–005
2. What do you understand by Purchasing Power
Parity (PPP) ? Discuss the applications of this
relationship and describe the reasons for its
deviation.
3. What is a currency option ? Discuss the factors
impacting price of an option and describe how
can they be used to offset the risk of
appreciation and depreciation of currency.
4. Describe in brief the various types of Exchange
Rate Exposure and discuss techniques of
managing transaction exposure.
5. What are the various types of Export Credit ?
Explain the terms and conditions associated
with granting of export credit in foreign
currency.
6. Why is cost of capital different across
countries ? How is cut-off rate for foreign
project appraisal determined ?
[ 3 ]
7. What is International Capital Budgeting ?
Discuss the issues involved in foreign
investment analysis.
8. What do you understand by international
diversification ? Discuss the barriers to
international diversification and describe how
they can be overcome.