FOREIGN EXCHANGE MANAGEMENT

Multiple choices:

Q1. If in a hall there are 18 persons then how many handshakes are possible?

1. 18*18

2. 18*17/2

3. 18*17

4. None of the above

Q2. If the number of trials be ‘n’ and the probability of occurrence be ‘p’ then the standard deviation with respect to np, is given by:

1. (np)1/2

2. (np(1-p))1/2

3. (np)1/4

4. (np(1-p))1/4

Q3. For a biased coin the probability of occurrence of head is 0.4 ,if the coin is tossed twice then the probability of occurrence of at least one head will be:

1. 0.76

2. 0.48

3. 0.64

4. 0.16

Q4. Factorial of 5 equals:

1. 60

2. 120

3. 24

4. 5

Q5. Combinatory of (4,2) equals:

1. 12

2. 8

3. 6

4. None of the above

Q6. ‘Economic Control of Quality of Manufactured Product’, a book by Walter A Shewhart in:

1. 1931

2. 1941

3. 1930

4. 1956

Q7. Quality is judged by…………

1. Retailer

2. Government

3. Customer

4. Hole seller

Q8. A run chart is a special chart of…………

1. Pie chart

2. Line chart

3. R chart

4. C chart

Q9. Universes may differ :

1. In average

2. In above average

3. At higher level

4. All of the above

Q10. ASQC and ANSI began in the year:

1. 1956

2. 1976

3. 1978

4. 1960

Part Two:

1. Differentiate between ‘Defect’ and ‘Defective’.

2. Explain the need of ‘short method’.

3. What does ‘Tchebycheff’s inequality theorem’ say?

4. Explain the usability of ‘stochastic limit’.

5. Write a note on ‘Cause and Effect’ diagram.

1. What marketing strategy should RSL adopt to remain competitive in the international market?

2. Has the company taken the right decision to forward integrate and enter into the highly volatile garment market?

3. How could have the SQC approach, been useful in solving the immediate problems of Japan?

4. If you were among one of the management members, what would have been your first insight.

5. A sample of 30 is to be selected from a lot of 200 articles. How many different samples are possible?

6. In Dodge’s CSP-1, it is desired to apply sampling inspection to 1 piece out of every 15 and to maintain an AOQL of 2%. What should be the value of i?

Part Two:

Q1. Differentiate between Forward Rates and Expected Spot Rates?

Q2. Write a note on ‘Swaps’?

Q3. Differentiate between Bid Rate and Ask Rate?

Q4. Write a note on ‘Interest Rate Parity’?

Q5. How does the international asset swap mechanism work? Explain.

Q7. Discuss the various benefits of international asset swaps.

Q8. What measures according to you the RBI should take to manage rupee-dollar exchange rates?

Q9. Do you think appreciation of rupee against dollar have any significant adverse impact on the Indian economy? Discuss.

Q10. How many types of Exposures are there in terms of Exchange Risk?

Q11. Write a note on

1. International Monetary Fund

2. International Finance Corporation

3. International Development Association