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Second Internal Examination 2016

FM - 405
International Finance
1. What is Interest Rate parity? (5)
2. Do you believe that NPV rule is better than IRR rule for Capital Budgeting
projects?(5)
3. Write short notes on the following (5*3=15)
Special Drawing Rights
Purchasing power parity
Foreign Exchange market
4. What is Balance Sheet hedge? (5)

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