Answer the following questions.
Question 1) Briefly describe the flexible exchange rate regime. Bring out the recent developments in your country’s Monetary System.
Question 2) Describe the three components of Balance of Payment.
Question 3) Differentiate between FDI and FPI. Which one is better for the country and why?
Question 4) Describe international cash settlement and processing.
b) What is cross rates? Describe with examples
Question 5) Describe the working capital management in a MNC.
Question 6) What is the difference between interest rate swap and currency swap.
b) How could futures contracts be used to manage exchange risk?