E B

6E BB B72 276 A9DD73 B41 155DD61 179AAA9

B A B
EB BBB 727 76A 9D 73B 415 55D 617 79A A98 8461
9 7 4 6 9 A
BB BB7 7276 6A9 D73 3B4 155 5D6 179 AA 984 4618 86E
2 A D 1 D 1 A 9 6 B
BB B72 76A 9D 73B B41 55D 617 79A A9 846 186 6EB BB7
7 7 5 6 A 8 1 E B
B7 7276 6A9 9D7 3B4 4155 5D6 179 9AA 984 4618 86E BB B72 276A
27 A D 3B 15 D 17 A 98 6 6 BB B7 76 9
27 6A9 9D7 73B 415 5D6 6179 9AAA98 461 186E EBB B7 276 A9DD73
6 4 5 4 2 A
76 A9DD73 3B4 155 D61 179AAA 984 618 86EB BBB B72 76A 9D 73B B41
A9 7 B4 15 D6 79 A 98 61 6E B 72 76 9D 73 41 55

58921
6A D 3B 1 5D 17 A 9 46 86 B B7 7 A9 7 B4 5 D6
9D 73 4 55 61 9A A 84 18 EB BB 2 6A D 3B 1 5D 17
9D 73B B41 155DD61 79A A9 9846 6186 6EB BB 727 76A 9D7 73B 415 55D 617 9AA
7 7 9 4 6 9
D7 73B 415 55D 617 9AAA98 8461 186E EBB BB7 276 6A9 D73 3B4 155 5D6 179 AA 984
3B 415 5D 617 9A 98 461 86 BB B7 276 A9 D7 B4 155 D6 179 AA 984 618
41 5D 61 9A A9 46 86 EB B 27 A9 D7 3B 15 D6 17 AA 98 61 6E
55 61 79 A 84 18 EB BB 72 6A D 3B 41 5D 17 9A 9 46 86 B
D6 79 AA 98 61 6E B 7 76 9D 73 41 55 61 9A A9 84 18 EB BB

5. Merger
17 AA 98 461 86E BB B7 276 A9 73 B4 55 D6 79 A 84 618 6E BB 72
9A 9 46 86 B B 27 A D7 B 15 D6 17 AA 98 61 6E BB 7 76

8. Euro bond
A9 846 18 EB BB 727 6A 9D 3B 415 5D 17 9A 98 461 86 BB B7 276 A9

4. Acquisition
84 18 6EB BB 72 6A 9D 73B 41 5D 617 9A A9 46 86 EB B 27 A9 D7
61 6E B 7 76 9D 73 41 55 61 9A A9 84 18 EB BB 72 6A D 3B
86 BB B7 27 A9 7 B4 55 D6 79 A 84 61 6E B 72 76 9D 73 41
EB B 27 6A D 3B 15 D 17 A 98 61 86 BB B7 76 A9 7 B4 55

10. Investment Risks

BB 72 6A 9D 73B 41 5D 617 9A A9 46 86 EB B7 27 A9 D7 3B4 15 D6

7. Offshore Markets
GROUP A

72 76A 9D 73B 41 55D 617 9A A9 846 186 EB BB 27 6A9 D7 3B 15 5D6 179

76 9D 73 4 55 61 9A A 84 18 EB BB 72 6A D 3B 41 5D 17 A

6. Depository Receipts
1. International Finance

A9 7 B4 15 D6 79 A 98 61 6E B 72 76 9D 73 41 55 61 9A A9
D7 3B 15 5D 17 AA 98 461 86E BB B7 76 A9 73 B4 55 D6 79 A 84

9. Foreign Exchange risks

3B 415 5D 617 9A 98 461 86 BB B7 276 A9 D7 B4 155 D6 179 AA 984 618

Q.2) Answer either A&B OR C&D

41 5D 61 9A A9 46 86 EB B 27 A9 D7 3B 15 D6 17 AA 98 61 6E
55 61 79 A 84 18 EB BB 72 6A D 3B 41 5D 17 9A 9 46 86 B
D6 79 AA 98 61 6E B 7 76 9D 73 41 55 61 9A A9 84 18 EB BB
2. International Equity Markets
3. International Money Markets

17 AA 98 461 86E BB B7 276 A9 73 B4 55 D6 79 A 84 618 6E BB 72

9A 9 46 86 B B 27 A D7 B 15 D6 17 AA 98 61 6E BB 7 76
A9 846 18 EB BB 727 6A 9D 3B 415 5D 17 9A 98 461 86 BB B7 276 A9
84 18 6EB BB 72 6A 9D 73B 41 5D 617 9A A9 46 86 EB B 27 A9 D7
61 6E B 7 76 9D 73 41 55 61 9A A9 84 18 EB BB 72 6A D 3B
86 BB B7 27 A9 7 B4 55 D6 79 A 84 61 6E B 72 76 9D 73 41
EB B 27 6A D 3B 15 D 17 A 98 61 86 BB B7 76 A9 7 B4 55
BB 72 6A 9D 73B 41 5D 617 9A A9 46 86 EB B7 27 A9 D7 3B4 15 D6

OR
72 76A 9D 73B 41 55D 617 9A A9 846 186 EB BB 27 6A9 D7 3B 15 5D6 179

with International Finance in today’s global context?

76 9D 73 4 55 61 9A A 84 18 EB BB 72 6A D 3B 41 5D 17 A
A9 7 B4 15 D6 79 A 98 61 6E B 72 76 9D 73 41 55 61 9A A9

Page 1 of 2
(2½ Hours)

4. LIBOR refers to London Inter-Bank Offer Rate

D7 3B 15 5D 17 AA 98 461 86E BB B7 76 A9 73 B4 55 D6 79 A 84
3B 415 5D 617 9A 98 461 86 BB B7 276 A9 D7 B4 155 D6 179 AA 984 618

6. International Equity Markets involve only MNCs.

9. Currency risks are associated with only US Dollar.

41 5D 61 9A A9 46 86 EB B 27 A9 D7 3B 15 D6 17 AA 98 61 6E
55 61 79 A 84 18 EB BB 72 6A D 3B 41 5D 17 9A 9 46 86 B
D6 79 AA 98 61 6E B 7 76 9D 73 41 55 61 9A A9 84 18 EB BB
Q.1) A) Match the following options correctly (Any Eight)

17 AA 98 461 86E BB B7 276 A9 73 B4 55 D6 79 A 84 618 6E BB 72

e) Equity risk

9A 9 46 86 B B 27 A D7 B 15 D6 17 AA 98 61 6E BB 7 76

10. GDRs are investment options available only in America.

A9 846 18 EB BB 727 6A 9D 3B 415 5D 17 9A 98 461 86 BB B7 276 A9
g) Cross listing

84 18 6EB BB 72 6A 9D 73B 41 5D 617 9A A9 46 86 EB B 27 A9 D7

61 6E B 7 76 9D 73 41 55 61 9A A9 84 18 EB BB 72 6A D 3B

7. The concentration risk of investment is similar to credit risks

846186EBBB7276A9D73B4155D6179AA9
8. Reinvestment risks is risk associated Credit Rating Agencies.
d) Transaction risk

86 BB B7 27 A9 7 B4 55 D6 79 A 84 61 6E B 72 76 9D 73 41
EB B 27 6A D 3B 15 D 17 A 98 61 86 BB B7 76 A9 7 B4 55
h) Commercial Bills
c) Zero-coupon Bond

BB 72 6A 9D 73B 41 5D 617 9A A9 46 86 EB B7 27 A9 D7 3B4 15 D6

72 76A 9D 73B 41 55D 617 9A A9 846 186 EB BB 27 6A9 D7 3B 15 5D6 179
1. International finance concerns with exchange rate, FDI and others.
76 9D 73 4 55 61 9A A 84 18 EB BB 72 6A D 3B 41 5D 17 A

b) What do you mean by Global Financial Markets? What are its functions?
A9 7 B4 15 D6 79 A 98 61 6E B 72 76 9D 73 41 55 61 9A A9
GROUP B

Q.1) B) State whether following statements are true or false (Any Seven)
i) Euro- Currency Markets

D7 3B 15 5D 17 AA 98 461 86E BB B7 76 A9 73 B4 55 D6 79 A 84
3B 415 5D 617 9A 98 461 86 BB B7 276 A9 D7 B4 155 D6 179 AA 984 618
Paper / Subject Code: 45001 / International Finance - I

j) Indian Depository Receipts

41 5D 61 9A A9 46 86 EB B 27 A9 D7 3B 15 D6 17 AA 98 61 6E
55 61 79 A 84 18 EB BB 72 6A D 3B 41 5D 17 9A 9 46 86 B
D6 79 AA 98 61 6E B 7 76 9D 73 41 55 61 9A A9 84 18 EB BB
17 AA 98 461 86E BB B7 276 A9 73 B4 55 D6 79 A 84 618 6E BB 72
9A 9 46 86 B B 27 A D7 B 15 D6 17 AA 98 61 6E BB 7 76
A9 846 18 EB BB 727 6A 9D 3B 415 5D 17 9A 98 461 86 BB B7 276 A
3. Capital budgeting is the process of allocating resources for capital expenditures.
84 18 6EB BB 72 6A 9D 73B 41 5D 617 9A A9 46 86 EB B 27 A9

5. Offshore Markets implies to markets outside national boundary of a given entity.

f) International Financial Management

61 6E B 7 76 9D 73 41 55 61 9A A9 84 18 EB BB 72 6A
Note: All questions are compulsory while marks are indicated on the right hand side.

a) Adjoining of two different companies

86 BB B7 27 A9 7 B4 55 D6 79 A 84 61 6E B 72 76 9D
b) Overtaking one company with another

EB B 27 6A D 3B 15 D 17 A 98 61 86 BB B7 76 A9 7
BB 72 6A 9D 73B 41 5D 617 9A A9 46 86 EB B7 27 A9 D7
(8m)

72 76A 9D 73B 41 55D 617 9A A9 846 186 EB BB 27 6A9 D7 3

(15m)
76 9D 73 4 55 61 9A A 84 18 EB BB 72 6A D 3B
2. International financial management concerns with the sound decision making for MNCs.

a) What do you understand the term, “International Finance”? What are the challenges associated
A9 7 B4 15 D6 79 A 98 61 6E B 72 76 9D 73
D7 3B 15 5D 17 AA 98 461 86E BB B7 76 A9 73 B4
(7m)
(Total Marks : 75)

3B 415 5D 617 9A 98 461 86 BB B7 276 A9 D7 B4 1

41 5D 61 9A A9 46 86 EB B 27 A9 D7 3B 15
55 61 79 A 84 18 EB BB 72 6A D 3B 41
D6 79 AA 98 61 6E B 7 76 9D 73 41 55
17 AA 98 461 86E BB B7 276 A9 73 B4 55
9A 9 46 86 B B 27 A D7 B 15 D
A9 846 18 EB BB 727 6A 9D 3B 415 5D
84 18 6EB BB 72 6A 9D 73B 41 5D 61
61 6E B 7 76 9D 73 41 55 61
86 BB B7 27 A9 7 B4 55 D6 7
E 6 3
 E B
6E BB B72 276 A9DD73 B41 155DD61 179AAA9
B A B
EB BBB 727 76A 9D 73B 415 55D 617 79A A98 8461
9 7 4 6 9 A
BB BB7 7276 6A9 D73 3B4 155 5D6 179 AA 984 4618 86E
2 A D 1 D 1 A 9 6 B
BB B72 76A 9D 73B B41 55D 617 79A A9 846 186 6EB BB7
7 7 5 6 A 8 1 E B
B7 7276 6A9 9D7 3B4 4155 5D6 179 9AA 984 4618 86E BB B72 276A
27 A D 3B 15 D 17 A 98 6 6 BB B7 76 9
27 6A9 9D7 73B 415 5D6 6179 9AAA98 461 186E EBB B7 276 A9DD73
6 4 5 4 2 A

v.
iv.
iii.
ii.
i.
76 A9DD73 3B4 155 D61 179AAA 984 618 86EB BBB B72 76A 9D 73B B41
A9 7 B4 15 D6 79 A 98 61 6E B 72 76 9D 73 41 55

bonds?

58921
6A D 3B 1 5D 17 A 9 46 86 B B7 7 A9 7 B4 5 D6
9D 73 4 55 61 9A A 84 18 EB BB 2 6A D 3B 1 5D 17
9D 73B B41 155DD61 79A A9 9846 6186 6EB BB 727 76A 9D7 73B 415 55D 617 9AA
7 7 9 4 6 9
D7 73B 415 55D 617 9AAA98 8461 186E EBB BB7 276 6A9 D73 3B4 155 5D6 179 AA 984
3B 415 5D 617 9A 98 461 86 BB B7 276 A9 D7 B4 155 D6 179 AA 984 618
41 5D 61 9A A9 46 86 EB B 27 A9 D7 3B 15 D6 17 AA 98 61 6E
55 61 79 A 84 18 EB BB 72 6A D 3B 41 5D 17 9A 9 46 86 B
and acquisitions?

D6 79 AA 98 61 6E B 7 76 9D 73 41 55 61 9A A9 84 18 EB BB
17 AA 98 461 86E BB B7 276 A9 73 B4 55 D6 79 A 84 618 6E BB 72
9A 9 46 86 B B 27 A D7 B 15 D6 17 AA 98 61 6E BB 7 76
A9 846 18 EB BB 727 6A 9D 3B 415 5D 17 9A 98 461 86 BB B7 276 A9

Cost of Capital
84 18 6EB BB 72 6A 9D 73B 41 5D 617 9A A9 46 86 EB B 27 A9 D7
61 6E B 7 76 9D 73 41 55 61 9A A9 84 18 EB BB 72 6A D 3B

Promissory Notes
86 BB B7 27 A9 7 B4 55 D6 79 A 84 61 6E B 72 76 9D 73 41
EB B 27 6A D 3B 15 D 17 A 98 61 86 BB B7 76 A9 7 B4 55
BB 72 6A 9D 73B 41 5D 617 9A A9 46 86 EB B7 27 A9 D7 3B4 15 D6 International Money Market?
72 76A 9D 73B 41 55D 617 9A A9 846 186 EB BB 27 6A9 D7 3B 15 5D6 179
76 9D 73 4 55 61 9A A 84 18 EB BB 72 6A D 3B 41 5D 17 A
A9 7 B4 15 D6 79 A 98 61 6E B 72 76 9D 73 41 55 61 9A A9

Q.5) Answer either A&B OR C

D7 3B 15 5D 17 AA 98 461 86E BB B7 76 A9 73 B4 55 D6 79 A 84
3B 415 5D 617 9A 98 461 86 BB B7 276 A9 D7 B4 155 D6 179 AA 984 618

Q.4) Answer either A&B OR C&D

Q.3) Answer either A&B OR C&D

41 5D 61 9A A9 46 86 EB B 27 A9 D7 3B 15 D6 17 AA 98 61 6E
55 61 79 A 84 18 EB BB 72 6A D 3B 41 5D 17 9A 9 46 86 B
D6 79 AA 98 61 6E B 7 76 9D 73 41 55 61 9A A9 84 18 EB BB
17 AA 98 461 86E BB B7 276 A9 73 B4 55 D6 79 A 84 618 6E BB 72

Information barrier in investments

9A 9 46 86 B B 27 A D7 B 15 D6 17 AA 98 61 6E BB 7 76
A9 846 18 EB BB 727 6A 9D 3B 415 5D 17 9A 98 461 86 BB B7 276 A9

International Financial Management

84 18 6EB BB 72 6A 9D 73B 41 5D 617 9A A9 46 86 EB B 27 A9 D7
61 6E B 7 76 9D 73 41 55 61 9A A9 84 18 EB BB 72 6A D 3B

Risks associated with bond investments

86 BB B7 27 A9 7 B4 55 D6 79 A 84 61 6E B 72 76 9D 73 41
EB B 27 6A D 3B 15 D 17 A 98 61 86 BB B7 76 A9 7 B4 55

c) Choose any 3 of the following (ANY THREE)

BB 72 6A 9D 73B 41 5D 617 9A A9 46 86 EB B7 27 A9 D7 3B4 15 D6

OR
OR
OR

72 76A 9D 73B 41 55D 617 9A A9 846 186 EB BB 27 6A9 D7 3B 15 5D6 179

76 9D 73 4 55 61 9A A 84 18 EB BB 72 6A D 3B 41 5D 17 A
A9 7 B4 15 D6 79 A 98 61 6E B 72 76 9D 73 41 55 61 9A A9

Page 2 of 2
D7 3B 15 5D 17 AA 98 461 86E BB B7 76 A9 73 B4 55 D6 79 A 84
3B 415 5D 617 9A 98 461 86 BB B7 276 A9 D7 B4 155 D6 179 AA 984 618
41 5D 61 9A A9 46 86 EB B 27 A9 D7 3B 15 D6 17 AA 98 61 6E
55 61 79 A 84 18 EB BB 72 6A D 3B 41 5D 17 9A 9 46 86 B
D6 79 AA 98 61 6E B 7 76 9D 73 41 55 61 9A A9 84 18 EB BB

____________________
17 AA 98 461 86E BB B7 276 A9 73 B4 55 D6 79 A 84 618 6E BB 72
9A 9 46 86 B B 27 A D7 B 15 D6 17 AA 98 61 6E BB 7 76 b) What are various types of markets in Eurocurrency Markets?
a) What are the reasons for the growth of Eurocurrency market?
c) Write a note about the major stock markets around the world.

c) What are various types of bonds in the Eurocurrency Market?

A9 846 18 EB BB 727 6A 9D 3B 415 5D 17 9A 98 461 86 BB B7 276 A9
84 18 6EB BB 72 6A 9D 73B 41 5D 617 9A A9 46 86 EB B 27 A9 D7
61 6E B 7 76 9D 73 41 55 61 9A A9 84 18 EB BB 72 6A D 3B

846186EBBB7276A9D73B4155D6179AA9
86 BB B7 27 A9 7 B4 55 D6 79 A 84 61 6E B 72 76 9D 73 41
EB B 27 6A D 3B 15 D 17 A 98 61 86 BB B7 76 A9 7 B4 55
b) Write in brief about the American Depository Receipts and its types?

BB 72 6A 9D 73B 41 5D 617 9A A9 46 86 EB B7 27 A9 D7 3B4 15 D6

72 76A 9D 73B 41 55D 617 9A A9 846 186 EB BB 27 6A9 D7 3B 15 5D6 179
76 9D 73 4 55 61 9A A 84 18 EB BB 72 6A D 3B 41 5D 17 A
A9 7 B4 15 D6 79 A 98 61 6E B 72 76 9D 73 41 55 61 9A A9
D7 3B 15 5D 17 AA 98 461 86E BB B7 76 A9 73 B4 55 D6 79 A 84
3B 415 5D 617 9A 98 461 86 BB B7 276 A9 D7 B4 155 D6 179 AA 984 618
Paper / Subject Code: 45001 / International Finance - I

a) What are the various foreign exchange risks in the international investments?
41 5D 61 9A A9 46 86 EB B 27 A9 D7 3B 15 D6 17 AA 98 61 6E
55 61 79 A 84 18 EB BB 72 6A D 3B 41 5D 17 9A 9 46 86 B
D6 79 AA 98 61 6E B 7 76 9D 73 41 55 61 9A A9 84 18 EB BB
17 AA 98 461 86E BB B7 276 A9 73 B4 55 D6 79 A 84 618 6E BB 72
9A 9 46 86 B B 27 A D7 B 15 D6 17 AA 98 61 6E BB 7 76
c) What do you mean by Capital Budgeting? What is the process of capital budgeting?

A9 846 18 EB BB 727 6A 9D 3B 415 5D 17 9A 98 461 86 BB B7 276 A

84 18 6EB BB 72 6A 9D 73B 41 5D 617 9A A9 46 86 EB B 27 A9
61 6E B 7 76 9D 73 41 55 61 9A A9 84 18 EB BB 72 6A
d) What are Depository Receipts? Explain the mechanism of Global Depository Receipts?

86 BB B7 27 A9 7 B4 55 D6 79 A 84 61 6E B 72 76 9D
EB B 27 6A D 3B 15 D 17 A 98 61 86 BB B7 76 A9 7
BB 72 6A 9D 73B 41 5D 617 9A A9 46 86 EB B7 27 A9 D7
a) What do you mean by International Money Market? Write about various instruments of the

72 76A 9D 73B 41 55D 617 9A A9 846 186 EB BB 27 6A9 D7 3

(5m*3=15m)
d) What do you mean by foreign currency convertible bonds and foreign currency exchangeable

(15m)
(15m)
(15m)

76 9D 73 4 55 61 9A A 84 18 EB BB 72 6A D 3B
A9 7 B4 15 D6 79 A 98 61 6E B 72 76 9D 73
d) What do you mean by Mergers and Acquisitions? Why do firms engage in cross border merger

D7 3B 15 5D 17 AA 98 461 86E BB B7 76 A9 73 B4 b) What is different market risks associated with international Investments in the present markets?
3B 415 5D 617 9A 98 461 86 BB B7 276 A9 D7 B4 1
41 5D 61 9A A9 46 86 EB B 27 A9 D7 3B 15
55 61 79 A 84 18 EB BB 72 6A D 3B 41
D6 79 AA 98 61 6E B 7 76 9D 73 41 55
17 AA 98 461 86E BB B7 276 A9 73 B4 55
9A 9 46 86 B B 27 A D7 B 15 D
A9 846 18 EB BB 727 6A 9D 3B 415 5D
84 18 6EB BB 72 6A 9D 73B 41 5D 61
61 6E B 7 76 9D 73 41 55 61
86 BB B7 27 A9 7 B4 55 D6 7
E 6 3