INSTITUTE OF PUBLIC ENTERPRISE
Shamirpet Campus: Hyderabad-500101
POST GRADUATE PROGRAMMES
End Trimester Examinations: December-2025/January-2026
Programme : PGDM - BFS Trimester : V
Subject : International Banking, Treasury and Forex Time : 2 Hours
Management
Code : 24CF502 Max Marks : 30
Note: Answer all questions,
Section – I (6X1 = 6 Marks)
[Link] QUESTION BTL CO
Q. 1 State at least TWO impacts of India’s recent
foreign ownership reform in the insurance sector 2
on international capital flows.
Q. 2 What is liquidity risk in treasury operations,
especially in the current global economic and
political scenario which is marked by slower 2
growth, debt challenges, and geopolitical
tensions.?
Q. 3 Mention in brief the impact of the India–Oman
3
trade pact on bilateral current account flows.
Q. 4 Identify a key factor influencing INR exchange
rate volatility amid global uncertainty. 3
Q. 5 List at least TWO ways how hedging can reduce
risks from global trade tensions impacting 3
currency markets.
Q. 6 Identify TWO uses of Letter of Credit for
mitigating risks in export transactions. 3
Section - II (4X 3 = 12 Marks)
[Link] QUESTION BTL CO
Q. 7a Several emerging economies are exploring non- 4
dollar trade settlement mechanisms and
regional payment systems amid rising
geopolitical fragmentation. Analyze how such
developments could alter international banking
relationships, correspondent banking, and
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global liquidity flows.
OR
Ongoing trade tensions between major
economies and frequent use of tariffs and
sanctions have increased uncertainty in global
Q. 7b trade finance. Evaluate the impact of this
environment on cross-border lending decisions
and treasury risk appetite of international
banks.
Following a sudden geopolitical escalation,
global investors shift funds to safe-haven assets,
leading to sharp FII outflows from emerging
Q. 8a 4
markets including India. Analyze the challenges
faced by bank treasuries in managing liquidity
and short-term funding under such conditions.
OR
Despite global slowdown concerns, India
continues to show relatively strong growth
indicators and stable domestic demand.
Q. 8b 5
Evaluate whether India’s macroeconomic
resilience is sufficient to attract and retain long-
term foreign capital during global uncertainty.
Geopolitical conflicts and sanctions have
encouraged some countries to seek alternatives
to traditional international payment systems like
Q. 9a 4
SWIFT. Analyze the implications of this trend for
international settlements, banking efficiency,
and systemic risk.
OR
Banks operating across regions affected by
sanctions and political instability face increasing
operational disruptions. Evaluate how
Q. 9b 5
geopolitical conflicts raise settlement,
counterparties, and compliance risks for
international banks.
Major central banks follow divergent monetary
policies, resulting in volatile capital flows and
exchange rate movements in emerging
Q. 10a 4
economies. Analyze the impact of such global
interest rate divergence on India’s Balance of
Payments.
OR
Q. 10b Currency markets increasingly react to political 5
announcements and geopolitical developments
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rather than economic fundamentals alone.
Evaluate the effectiveness of forex risk
management techniques in such an
environment.
Section – III (2 X 6 = 12 Marks)
[Link] QUESTION BTL CO
11. a) Banks today operate amid persistent
geopolitical tensions, tighter global regulations,
rapid capital movements, and heightened market
Q. 11a volatility. Evaluate how these conditions have 5
expanded the role of the modern treasury
department beyond traditional cash and liquidity
management.
OR
Global banks are increasingly adopting TMS,
automation, AI-based analytics, and enhanced
payment connectivity to respond to volatile
Q. 11b markets and regulatory scrutiny. Evaluate how 5
these technologies strengthen liquidity
management, risk control, and decision-making
in international treasury operations.
Q. 12a An Indian exporter faces USD volatility caused 6
by global monetary tightening, trade restrictions,
and geopolitical uncertainty, affecting export
margins. Design a comprehensive forex risk
management strategy, justifying the choice of
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instruments and timing.
OR
A multinational firm operates across regions
experiencing uneven economic recovery,
sanctions risk, and fluctuating capital controls.
Q. 12b 6
Create a strategic framework to manage
international capital flow risks, integrating
treasury, hedging, and policy considerations.
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