IGNOU IBO-06 December 2023 Previous Year Question Paper

Q1.(a) Do you think W. T. O. has succeeded in achieving its objectives ? Point out its achievements and failures. 12

(b) What are special drawing right s (SDRs) ? How is the value of SDR calculated ?

Q2.(a) Discuss the risk differences between domestic and foreign financial markets. 10

(b) What are global depository receipts ? How are they priced and what are their characteristics ? 2+4+4 [ 2 ]

Q3.(a) What do you und erstand by prime lending rate ? Explain the basic approaches to loan pricing. 2+10

(b) Explain clearing house interbank payment system (CHIPS).

Q4.(a) What are foreign exchange markets ? What are their functions ? Who are the major participants in the fo reign exchange markets ? 4+4+4

(b) Explain the following terms : 2×4=8

(i) Spot transaction

(ii) Exchange rate

(iii) Direct quote

(iv) Indirect quote

Q5.What do you mean by transaction exposure ?

Q6.Explain the various techniques available to manage the transaction exposure.

Q7.What do you mean by foreign direct investment and portfolio investment ? What is the difference between these two ? Discuss the considerations on which rationale of forei gn direct investments may be based. 4+6+10 [ 3 ]

Q8.Explain and illustrate various discounted cash flow (DCF) and non -discounted cash flow techniques of project appraisal.

Q9.(a) What do you mean by political risk ? What are the different approaches employed to assess political risk ? Explain. 2+8

(b) What is countertrade ? Discuss its different forms.

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

(a) Project export financing

(b) International Fisher effect

(c) Transfer pricing

(d) Capital Asset Pricing Model