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1. Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
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or
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ASSIGNMENT
DRIVE FALL WINTER 2014
PROGRAM Bachelors of Business Administration- BBA
SUBJECT CODE & NAME BBA603 & ROLE OF INTERNATIONAL FINANCIAL
INSTITUTIONS
SEMESTER 6
BK ID B1905
CREDITS 4
MARKS 60
Note: Answer all questions. Kindly note that answers for 10 marks questions should be
approximately of 400 words. Each question is followed by evaluation scheme.
1 Give introduction to international finance. Explain the benefits, scope of international finance.
List the advantages and disadvantages of globalization.
Answer : International finance is the branch of financial economics broadly concerned with
monetaryandmacroeconomicinterrelationsbetweentwo or more countries. International finance
examinesthe dynamics of the global financial system, international monetary systems, balance of
payments,exchange rates, foreign direct investment, and how these topics relate to international
trade.
Sometimesreferredtoasmultinational finance,internationalfinanceisadditionally concerned with
matters of international financial
2 Write short note on:
 Balance of Payment
 Current account
 Capital account
 Foreign exchange reserves
 Accounting equilibrium
Answer : Balance of Payment : Balance of Payments is the record of a country’s transactions with
the rest of the world. Terms like trade surplus and deficit are used to describe if the country has
more or exportsthanimportsor importsthanexports.More specifically,acountry has trade surplus
if value of exports

2.  Current account : The current account consists of the balance of trade, net factor income
and net cash transfers. The current account balance is one of two major measures of a
country's foreign trade
 Capital account : A national account that shows the net change in asset ownership for a
nation.The capital account isthe net result of public and private international investments
flowinginandout of a country. A capital account deficit shows that more money is flowing
out of
 Foreign exchange reserves : Deposits of a foreign currency held by a central bank. Holding
the currenciesof othercountriesasassetsallow governmentstokeeptheircurrenciesstable
and reduce the effect of
 Accounting equilibrium:the state of balance inthe economy where supply equals demand
or a country’s balance of payments is neither in deficit nor in excess. The state in which
Q.3 Explain cash-in-advance and write the process of issuing letter of credit and different types of
letter of credit.
Answer : Cash in Advance
The cash-in-advance constraint (sometimes known as the Clower constraint after American
economistRobertClower)[1] is an idea used in economic theory to capture monetary phenomena.
In the mostbasic economicmodels(suchasthe Walrasmodel orthe Arrow–Debreu model) there is
no role for money, as these models are not sufficiently detailed to consider how people pay for
goods, other than to say
Q. 4 Write down the differences between GATT and WTO. Explain the problems and
achievements of GATT & WTO.
Answer: Difference between WTO and GATT:-
The World Trade Organization is not a simple extension of GATT; on the contrary, it completely
replacesitspredecessorandhasa verydifferentcharacter.Among the principal differences are the
following:
The GATT wasa setof rules,amultilateral agreement,withnoinstitutional foundation, only a small
associated secretariat which had its origins in the attempt to establish an International Trade
Organization in the 1940s. The WTO is
5 Explain the main functions of banks. Write down the lending activities and lending policies of
bank.

3. Answer: Functions of banks
A. Primary Functions of Banks ↓
The primaryfunctionsof a bank are also knownasbankingfunctions.Theyare the main functions of
a bank. These primary functions of banks are explained below.
1. Accepting Deposits
Q.6 Write the objectives of global financial regulation. Explain the key features of Basel III and its
impact.
Answer: Aims of regulation
The objectives of financial regulators are usually:
 Market confidence – to maintain confidence in the financial system
 Financial stability – contributing to the protection and enhancement of stability of the
financial system
 Consumer protection – securing the appropriate degree of protection for consumers.
 Reduction of financial crime – reducing the extent to which it is possible for a regulated
business to be used for a purpose con
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
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or
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