(MBA)FOREIGN EXCHANGE MANAGEMENT

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M.B.A. (IB) DEGREE EXAMINATION, MAY 2018.
Fourth Semester

FOREIGN EXCHANGE MANAGEMENT

(2013 – 14 Academic Year and 2014 Calendar Year Onwards)
Time : Three hours Maximum : 100 marks

SECTION A — (5 X 8 = 40 marks)
Answer any FIVE questions.
All questions carry equal marks.

1. What is Forex and bring out the history of Forex.

2. What is currency and state some importance currencies in the world?

3. Explain the features of Forex market.

4. Explain the theory of purchasing power parity.

5. Explain the asset market model.

6. Explain the factors affecting forward rates.

7. What is Foreign Exchange Risk Management?

8. Explain Exposure netting and off setting.

SECTION B — (4 × 15 = 60 marks)
Answer any FOUR questions.
All questions carry equal marks.

9. Describe the organisation of Forex market.

10. Describe the concepts of Nominal Effective Exchange Rate and Real Effective Exchange Rate.

11. Describe the types of forward exchange contracts in India.

12. Describe the types and mechanism of option contracts.

13. Explain in detail the economic consequences of Exchange Rate Changes.

14. Write the detail the monetary and fiscal policy initiatives for exchange rate management.

15. Explain the Exchange control measures taken by RBI.

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