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Questions
1. What do you understand by Exchange Rate Arrangement? Explain the evolution of
exchange rate mechanisim and discuss the present system of exchange rate.
2. Explain the Purchasing Power Parity (PPP) and Interest Rate Parity (IRP) relationship in
detail.
3. Explain the meaning of derivatives. Describe the Currency Swaps in detail.
4. Discuss the objectives of raising of resources from International Markets. Discuss the
procedure for raising External Commercial Borrowings (ECBs).
5. How are Foreign Projects evaluated? Describe the issues involved in foreign investment
analysis.
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