IGNOU IBO-06 June 2015 Previous Year Question Paper

Q1.Explain and illustrate the inter-relationship 20 between Current Account, Capital Account and International Reserves Account in the Balance of Payment statement.

Q2.Explain briefly the strategies generally deployed 20 to manage economic exposures.

Q3.(a) Discuss the impact of a country's tax policy on foreign investment. 10+10

(b) Explain the role of MICA.

Q4.How does APV differ from other techniques of financial appraisal of projects ? Why is it more suitable for international project appraisal ?

Q5."The Principal problem in analysing different 20 forms of export financing is the distribution of risk between the exporter and importer". Analyze the following export financing instruments in the respect :

(a) Confirmed Irreversible Letter of Credit.

(b) Open Account.

(c) Documents Against Acceptance.

(d) Advance Payment.

(e) Documents Against Payment.

(f) Consignment Sale.

Q6.Explain the following terms : 5+5+5+5

(a) Spot and forward transaction

(b) Direct and indirect quotes

(c) Bid and offer rate

(d) Inter-bank market

Q7.What are the functions of the International Monetary Fund ? How do it help the member countries in achieving their goals of economic development ? Mention some of the schemes formulated recently for providing assistance to developing countries. 10+5+5

Q8.Distinguish between : 5+5+5+5

(a) American Depository Receipts and Global Depository Receipts.

(b) Foreign Bonds and Euro Bonds.

(c) Foreign Direct Investment and Portfolio Investment.

(d) Nostro and Vostro Accounts.

Q9.Write short notes on any two :

(a) Translation Exposure

(b) SWIFT

(c) Euro Commercial Paper

(d) Regional Financial Institutions

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(b) (SWIFT)

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(b) tgidi

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(f) -4rfuT facer

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(d) -RTT tqf egidl