IGNOU IBO-06 December 2018 Previous Year Question Paper

Q1.What are the salient features of the present day International Monetary System ? Explain and discuss the present exchange rate system.

Q2.Define yield curve. How is it constructed ? What is its utility ? How does the interest rate risk influence the yield curve ? 5+5+10

Q3.What are the foreign exchange markets ? What is their most important function ? How is this function performed ? 5+10+5

Q4.(a) An Indian company manufacturing 12 commercial vehicles sells nearly 75% of its output abroad. * It has a subsidiary in Germany manufacturing components. About 80% of German output is imported in India to be used in commercial vehicles. Does the company face foreign exchange risks ? If so, what kinds ? And how ? Explain.

(b) Discuss the future contracts with examples.

Q5.What are the motivations of companies investing abroad ? What are the risks they face and how do they manage them ?

Q6.What are the main DCF and non-DCF techniques of project appraisal ? Discuss their respective merits and demerits.

Q7.Discuss the significance and need of proper cash management in MNCs. What are the objectives ? A centralised or decentralised cash management which is most appropriate for MNCs. 10+5+5

Q8.Write short notes on any two of the following : 10+10

(a) Nostro and Vostro Account

(b) Currency options

(c) Forfeiting

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(i) Ph rew siqj drU 7W G7/ 7 9# 31W FrITT `I

Q9.'4-41:rR al-ddEtzr tkw Trurr -o ysq rP.Tur 4;Err t? cAiRsql aftwi rai-Hq -9-orr fa--d79. ELI

Q10.diAzi (yield curve) I W -4' 114 Aicti t? Tkr -4 Wif t? zff fff-4•R .411,3, tftfli dLoraw 3rsrf4ff wet t? 5+5+10

Q13.f-47f 4 fir enk4 11(41 ci4P-A err a-Tfi&Turr (Motivations) t? d•4 1114+11 45cif t, 31-4t17 % mid f? otiRstii --11-4R I

Q14.w.1 13.Car DCF -cr4 Non-DCF Fartrzri ITT t? 39 . t .ff2Tr argritl fa .-k9-9Vr r-A-Ri

Q16.1:-iiifiAct 414 rch-61. ITT Tifk-RE fatR110-1-10

(a) -9-)1t, (Nostro) d (Vostro) tglc11

(b) c F(41,(4

(c) 4;)(41 re:1 (Forfeiting)

(d) TVITTff t-4 fitthuT (CAPM)