1. How does the International Monetary Fund raise the resources? What are Special Drawing Rights? Briefly explain the funding facilities provided by IMF to its member countries.
2. Explain the structure of balance of payments and discuss what is the impact of various international financial flows on the structure of balance of payments.
3. Explain Purchasing Power Parity and reasons for its deviation. Also discuss its applications.
4. Discuss the reasons for the differences in the cost of capital across various counties. How is the cut off rate of foreign projects determined? Discuss.
5. What are different types of Exchange Rate Exposures? Describe the techniques used to mange Transaction exposure.