IGNOU IBO-06 December 2020 Previous Year Question Paper

Q1.What are the principal objectives of International Monetary Fund ? How are these objectives achieved ? Explain the mechanism. 5+7+8

Q2.What are the International Financial Markets ?

Q3.What purpose s do these markets serve ? What are their principal instruments ? Discuss. 5+5+10

Q4.Explain the international money transfer mechanism.

Q5.Under each of the following scenario s, w ill the value of Rupee relative to Japanese Yen appreciate, depreciate or remain the same ? Assume that exchange rates are free to vary and other factors remain constant. 20

(a) Growth rate of external income is higher in India than in Japan.

(b) Inflation is higher in India than in Japan.

(c) Prices in India are rising at the same rate.

(d) Real interest rates are higher in India than in Japan.

Q6.Discuss the concept of transaction exposure.

Q7.How i s it different from translation exposure and economic exposure ? Explain. 6+6+8

Q8.Critically examine the Govt. of India policy towards Foreign Direct Investment.

Q9.What a re Derivatives ? Discuss the difference between Futures and Options with relevant examples.

Q10.Write notes on any two of the following : 10+10

(a) International Project Appraisal

(b) Managing Political Risks

(c) Capital Asset Pricing Model

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