1. What do you understand by International monetary system. Discuss the need of IMF in international business with suitable examples. Briefly explain the evolution of international monetary system.
2. a) What are currency risks? Explain the types of currency risks and how to manage such risks.
b) How do various derivative instruments used to manage systemic or market risk?
3. Comment on the following:
a) The syndicated lending process has emerged as one of the least popular and notable financing instruments in the international financial markets.
b) Project financing is a relatively new method of financing projects and facilities by labor-intensive industries.
c) Exchange rate is an absolute price of currencies in the foreign exchange market.
d) Future contracts and forward contracts have no dissimilarity.
4. Distinguish between:
a) Unilateral adjustments and Bilateral adjustments
b) Commercial risks and Country risks
c) Foreign bonds and Foreign equity
d) Gold standard and Gold exchange standard
5. Write short notes on the following:
a) Clearing House Interbank Payment System (CHIPS)
b) Sources of external funds
c) Assessment of political risk
d) Float management