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BBA – 8
International Finance

Q. No. 1. MCQs

Q. No. 2. DEFINITIONS

1. FOB
2. Financial instrument
3. Money market
4. International Money market securities
5. Liquidity
6. Financial Market
7. Common Shares
8. Hybrid Market
9. Break even analysis
Q. No. 3. WRITE SHORT ANSWERS OF THE FOLLOWING QUESTIONS
1. What is currency risk?
2. Explain monetary approach for the determination of exchange rate.
3. Explain the purpose to use hedge in currency market?
4. Define payback period
5. Discuss the concept of currency depreciation.
6. What is the purpose to enforce currency regulations of the Government?
7. Explain the principles of balance of payment account.
8. In which year gold standard was introduced?
9. Cost of capital
10. Capital budgeting
11. What is the advantage of international capital market?
12. What are the causes of currency appreciation?
13. Define internal rate of return.
14. Explain current and capital account of balance of payment.
15. Explain the purpose to use hedge in currency market?
16. Explain the role of speculator in international market.
17. Explain cross rate.
18. Explain three functions of international money market.
19. What is the purpose to enforce currency regulations of the Government?
20. Explain put and call options.

Q. No. 4. LONG QUESTIONS

1. Explain the factors /causes for change in exchange rate.
2. Define Foreign Direct Investment. Explain its various types.
3. Explain country risk analysis. Discuss economic risks which are associated with the
international finance.
4. Briefly explain the functions of International Stock Market.