IIMT Engineering College, Meerut
(College Code-127)
MBA, IV Semester
I Sessional, (2024-25) EVEN Semester
FOREIGN EXCHANGE & FOREX RISK MANAGEMENT (KMBNFM04)
Duration: 2 hrs Max. Marks:
50
Mark
Q. No. Section-A CO
s
Attempt all the Questions (2 * 5
= 10)
a What is foreign exchange? 2
b Define exchange rate. 2
1. c Name the components of the Balance of Payments (BoP). 2
d What is the difference between a fixed and floating exchange rate system? 2
e What was the Bretton Woods System? 2
Q. Mark
Section-B CO
No s
Attempt any two part of the following: (5 * 2
= 10)
2 Differentiate between Current Account and Capital Account in BoP. 5
3 How does the International Fisher Effect (IFE) influence exchange rates? 5
4 What are Nostro, Vostro, and Loro accounts in foreign transactions? 5
Q. Section-C (10 * 3 = Mark
CO
No 30) s
Attempt any one part (10 * 1 =
10)
Explain the concept of Balance of Payments (BoP) and its components in detail.
5
OR 10
Compare and contrast the fixed exchange rate system and the flexible exchange rate system.
Attempt any one part (10 * 1 =
10)
Explain the theories of foreign exchange rate determination: PPP, IFE, and IRP, with examples.
6 10
OR
What are the advantages and disadvantages of Current and Capital Account Convertibility?
Attempt any one part (10 * 1 =
10)
Explain the role of the IMF in the global foreign exchange system.
7 10
OR
How do central banks manage exchange rates under different exchange rate regimes?