Currency Futures and Options

Foreign Bonds vs Eurobonds

Transaction Exposure vs Translation Exposure

Fixed Exchange Rate System vs Floating Exchange Rate System

Domestic Finance vs International Finance

Examine the role of international financial institutions such as the IMF and World Bank in promoting global financial stability and economic development

Explain the theory of purchasing power parity (PPP) and interest rate parity (IRP). Critically evaluate their relevance in determining exchange rates in the modern financial environment.

What is foreign exchange risk? Explain the different types of foreign exchange exposure faced by multinational firms and discuss the methods used to manage these risks.

 Explain the scope and significance of International Business Finance. Discuss how international financial decisions differ from domestic financial decisions in multinational enterprises.

What is business income? Why income should be computed?

Describe the rights of a hirer under hire purchase agreement.

What is the difference between normal loss and abnormal loss? Give examples.

ectify the following errors assuming that a Suspense Account was opened.

(10)

1) A purchase made from Anthony & Co. for Rs. 8,000 was not entered in the Purchases Book.

2) An amount of Rs. 500 received from Mr. Roy was credited to Ray's A/c.

3) A sale of Rs. 600 to Gopal was debited to his account as Rs. 6,000.

4) Salaries paid amounting to Rs. 1,000 was wrongly debited to Wages Account.

5) Rs. 450 received on account of interest stands wrongly credited to Commission Account.

6) The total of Returns Outwards Book amounting to Rs. 560 was hot posted in the ledger. 

7) A credit sale of Rs. 250 to Rakesh was wrongly credited to his Account.

8) A credit sale of Rs. 520 to Madhu debited to him as Rs. 250.

9) A credit purchases from Kailash of Rs. 400 was debited to him.

10) In Cash Book, the total of Discount Allowed column of Rs. 304 has been carried forward as Rs. 403.

Rectify the following errors assuming that a Suspense Account was opened.

Name the three systems of maintaining the accounts of a dependent branch and describe how profit is ascertained under each system.

What are different methods of calculating depreciation. Discuss the advantages and disadvantages of fixed instalment method.

Describe the advantages and limitations of accounting.

Explain briefly various methods of recording the joint venture transactions without maintaining separate set of books.

What is financial leverage? A firm has EBIT of ₹4,00,000 and interest charges of ₹1,20,000.

a) Calculate the Degree of Financial Leverage (DFL).

b) Explain what the result indicates about the firm's financial risk.

Explain the concept of bond valuation. A bond of face value ₹1,000 carries a coupon rate of 9% and has a maturity period of 6 years. If the market rate of interest is 11%, calculate the market price of the bond.