Short Answer Type Questions

Explain These
Q1.Distinguish between Direct and Indirect quotation of foreign exchange.
Q2.What is term spread and cross currency rates.
Q3.What is margin in futures currency trading?
Q4.Explain the mechanism of determining forward rate.
Q5.Currency swaps
Q6.Types of swaps
Q7.Exposure Managements
Q8.Types of Exposures
Q9.Alternative strategies for exposure management
Q10. Exposure Management Techniques
Q11. Parameters & Constraints on exposure Management
Q12. Forecasting Exchange Rates.
Q13. Technical Analysis
Q14. Dow Theory
Q15. Fundamental Analysis.
Q16. Financial forecasting
Q17. Tax Treatment of foreign Exchange gains & losses
Q18. Explain foreign exchange fundamental forecasting
Q19. Explain the term Official and Free market rat
Q20. What is Call option in foreign exchange mart?
Q21. What is maintenance margin in futures mark
Q22. Explain the term Exposure in foreign exchange market
Q23. Explain the term Foreign exchange Josses.
Q24. What is hedging in foreign exchange market
Q25. Explain the term free market rates in foreign exchange market
Q26. Mechanism of determining the forward rate.
Q27. Distinguish between exposure and risk.
Q28. Explain the term Mark-free Market
Q29. Explain the term speculating in foreign exchange market
Q30. What is breadth of market in technical analysis ?
Q31. What is translation exposure?

Long Answer type Questions

Q1.Write detailed notes on in plied, conditions and warranties as given in the Sale of
Goods Act.
Q2.Define a 'holder In due course. State and explain some of the important privileges
of a holder in due course under the Negotiable instruments Act.
Q3. What is a share certificate? What is the object and effect of the share certificate?
When can a company renew a share certificate or issue a duplicate ?
Q4."Auditing begins where accounting ends." Explain How does accountancy differ f
cm auditing?
Q5. What are the statutory liabilities of a business towards its consumers? Enumerate
 the same from the point of view of the current Consume r Protection Act
Q6.Distinguish between forward and futures currency markets. Also explain the
trading mechanism and Functioning of futures currency market In India with
suitable examples.
Q7.Explain the objectives, role and trading mechanism of currency swap market .
Also explain in brief the valuation of currency swap transaction.
Q8.Explain the various methods of translation of financial statements by a subsidiary
firm le its foreign parent firm along with the limitations . Also explain in
important tools for managing translation exposure in brief.
Q9.Write notes on the following:
a. Measurement of transaction exposure
b. Management of economic exposure

Q10. Critically examine the various techniques of forecasting the foreign exchange
rates with their merits Demerits.
Q11. Explain the tax treatment on foreign exchange gains and losses in Indian context
Q12. Explain the foreign exchange market. What are its major functions? Also
explain the structure of foreign exchange market with suitable examples.
Q13. Explain the currency forward market. What are its features? What is the
mechanism of quoting the forward rates? Explain with examples.
Q14. Distinguish between foreign exchange risk and foreign exchange exposure.
How will you measure risk and exposure? Explain with suitable examples.
Q15. Explain Currency Swap Market. What are its important j features? What are
different types of currency swap contracts? Explain the trading mechanism of this
market in brief.
Q16. Distinguish between currency translation exposure and currency operating
exposure. How will you manage the operating exposure? Explain with examples.
Q17. What do you mean by forecasting of foreign exchange rate? What is its
significance? Explain various techniques used in this respect with examples.
Q18. Write notes on the following:
i)Measurement of foreign exchange gains
ii)Tax treatment of foreign exchange gains
iii)Tax treatment of foreign exchange losses.
Q19. Critically examine the structure, mechanism and functioning of forward
currency market with suitable examples along with its status in India.
Q20. Write notes on the following:
i) Trading in futures currency market.
ii) Determination of cross currency rates.
Q21. What is Currency option market? What are its features? Explain its trading
mechanism along with its determination of option price.
Q22. Explain the concept of transaction exposure. How will you measure it? Also
explain in brief various tools to manage it.
Q23. What is forecasting of exchange rate? Is it essential in an MNC? Explain the
technical theory of forecasting the exchange rates with suitable examples.
Q24. How will you determine gains and losses on foreign exchange transactions?
Also explain the mechanism of tax treatment in this respect in brief.
Q25. Write notes on the following:
a. Fundamental analysis in foreign exchange forecasting.
b. Organization of exposure Management
Q26. Explain the organizational structure and functioning of foreign exchange
market. How the foreign exchange rates are quoted in this market? Explain with
suitable examples and recent developments in brief.
Q27. Explain the currency forward market. What are its features? What is the
mechanism of quoting the forward rates? Explain with examples.
Q28. Distinguish between foreign exchange risk and foreign exchange exposure.
How will you measure risk and exposure? Explain with suitable examples.
Q29. Explain Currency Swap Market. What are its important j features? What are
different types of currency swap contracts? Explain the trading mechanism of this
market in brief.
Q30. Distinguish between currency translation exposure and currency operating
exposure. How will you manage the operating exposure? Explain with examples