CUSTOMER_CODE
SMUDE
DIVISION_CODE
SMUDE
EVENT_CODE
JAN2016
ASSESSMENT_CODE IB0010_JAN2016
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
15783
QUESTION_TEXT
Explain the advantage and disadvantage of globalization.
Advantages –6 marks -1 each
1.Economic growth
2.Lower cost
3.Improved availability of goods and service s
4.Global prosperity and flow of productive resource s
5.Incentive forresearch and adoption of 6.innovations
SCHEME OF EVALUATION
7.Raise cheaper loans
Disadvantages–4 marks – 1 each
1.Unavoidable risks like tradecycle s
2.Undue political , economic and cultural risks
3.Problem of heavy debtedness
4.Problem of foreigncurrencies s
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
72804
QUESTION_TEXT
Explain any five forms of FRNs
1.
2.
3.
SCHEME OF EVALUATION 4.
5.
6.
7.
Student may write any five
Perpetual FRNs
Minimax FRNs
Drop lock FRNs
Flip flop FRNs
Mismatch FRNs
Hybridfixed rate reverse FRNs
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
72808
QUESTION_TEXT
Explain the most significant regulatory events that have created more
competitive global level playing field.
SCHEME OF
EVALUATION
1.
2.
Single European Act – 4 marks (explanation)
The Basel I Accord – 2 marks
3.
The Basel II Accord – 4 marks
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
125180
QUESTION_TEXT
Write a brief history of International Monetary system.
The history of International Monetary system comprises of –
a.Gold Standard 1876-1913:-gold was set as a standard against all the
currency. Each country had to maintain adequate reserve of gold in
order to back its currency value.
(2marks)
b.Interwar years-1914-1944:- broke gold standard and regain again.
(2marks)
SCHEME OF
EVALUATION
c.The Bretton Wood System 1945-1971:- one Ounce of gold was set
equal to $35. Other nations fixed their currency against $ and hence
indirectly to gold. IMF
(2marks)
d.The Smithsonian Agreement 1971-1973:- one Ounce of gold = $38.
Floating exchange rate system with control.
(2marks)
e.Post-1973:- free float, managed float, target-zone arrangement, fixed
rate system, current hybrid system.
(2marks)
Total marks: 10
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
125181
QUESTION_TEXT
What do you mean by PPP? Explain relative purchasing power parity
concept
Purchasing Power Parity is a theory which represent the link between
exchange rate and inflation.
Proposition 1Proposition 2(4 marks)
SCHEME OF
EVALUATION
Relative Purchasing Power Parity
Changes in the relative national price levels determine changes in
exchange rates over the long run. The theory predicts that the foreign
exchange value of a currency tends to appreciate or depreciate at a rate
equal to the difference between foreign and domestic inflation.
(6 marks)
Total marks: 10
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
125182
QUESTION_TEXT
List out with brief description the different forms of credit provided to
exporter?
1.Pre-shipment credit-credit provided for procuring raw material,
packing and processing of goods as well as for the other processes till
the goods are really shipped. Time period, extensions etc.
(2.5 marks)
SCHEME OF
EVALUATION
2. Post-shipment credit-credit after the goods have been shipped and
against the submission of export documents. Time period, extensions
etc.
(2.5 marks)
3. Medium term credit- credit against certain categories, Time period,
extensions etc.
(2.5 marks)
4. Credit under duty draw-back scheme- purpose, Time period,
extensions etc.
(2.5 marks)
Total marks: 10