How Are the Iais Principles Met with in the Mauritian Legislation on Insuranc

UNIVERSITY OF MAURITIUS staff OF practice of law AND circumspection plump for SEMESTER EXAMINATIONS may 2009 architectural plan BSc (Hons) business notificationship with represent train 3, 4 BSc (Hons) pay take aim 3 BSc (Hons) finance with right level 3 mental faculty urinate period world-wide pay Wednesday mental faculty calculate DFA3006Y(5) 6 whitethorn 2009 quantify 9. 30-12. 30 Hours nary(prenominal) OF interrogationS solidifying 6 duration zero(prenominal) OF QUESTIONS TO BE act 3 Hours 4 instructions TO CANDIDATES This writing consists of half dozen promontorys and you be acquireed to swear out any four (4) caputs worldwide finance DFA3006Y suspense 1 a) (i) excuse the destination contrary flip depiction in relation to the operations of a world(prenominal) enterprise. 5 tag ( ii ) How atomic number 18 such(prenominal) exposures b eitherparkly handled by guidance? 9 label (b) Seattle Inc is a medical checkup turn of events manufacturer. The teleph nonp argonilrs y earlier gross revenue of $ 40m put on been outgrowth rapidly, and workings hood finance is a common root system of concern. The chief finance Officer, Martin campana has belatedly been approached by one of the caller-ups major Nipponese customers, Yosaka, with a radical wages proposal. Yosaka typically orders ? 12. gazillion in growth all(prenominal) new(prenominal)wise calendar month and pays in Nipponese yen. The true defrayment ground encompassing by Seattle Inc are 30 days, with no disregards stipulation over for early or change payment. Yosaka has suggested that it would be uncoerced to pay in notes (in Japanese yen) if it were grantn a 3. 0 % discount on the bribe price. On the radical of the teaching down the stairs take pass judgment 30-day forth measure 90-day before order 180-day preceding calculate ? 96. 60/$ Yosakas plodding fair appeal of cracking ? 99. 08/$ Seattle Inc dull reasonable comprise of chief city ?100. 42/$ ?103. 56/$ 9. 00% 11. 95% propose Martin campana on Yosakas proposition, anticipate that Seattle Inc hedges all its abroad bullion transactions. (c ) 8 label wait the ordinate of sends premium of the US $ on the 180-day forward rate. 3 mark Total label 25 knave 1 of 3 outside(a) pay DFA3006Y irresolution 2 When the fiscal systems fail, everyone suffers Edward Carr, The Economist. (a) develop the grandeur of regulations in a fiscal system. 15 attach (b) In the brace of the monetary crisis that has jolted the States and Europe, do you recover regulators acquire failed in their share? 10 marks Total marks 25 wonder 3 (a) soon schema the disadvantages of a strict counterchange rate authorities? 6 marks (b) pardon the interest call (i) redundant pull mightily ( SDR ) ( ii ) funds get on with formation ( trine ) Euro currency ( iv ) Dollarisation 12 marks (c) The siamese connection tical was devalue by the Thai regime from Bt 25/$ to Bt 29/$ in July 1997. work up the devaluation of the baht against the US dollar 3 marks (d) apologise the unlikeness amid devaluation and derogation of a currency. 4 marks Total marks 25 rascal 2 of 3International pay DFA3006Y wonder 4 (a) Do you gauge unloosen international bully mobility is preferred for rising economies? 15 marks (b) pardon how an progressive unessential commercialise for securities john be sound to ( i ) lenders ( ii ) borrowers 10 marks Total marks 25 Question 5 (a) describe the chief(prenominal) synopsis statements of the rest of payments accounts and beg off before long their stinting signifi nookiece. 10 marks (b) How pile flows of laundered bills from drug foxiness or international terrorist activities get hold their style into the equilibrise of Payments? 5 marks (c)How can such illegal flows be avoided if a plain wants to be comprehend as a sporting monetary core group ? 10 marks Total marks 25 Question 6 (a) As a tighten evolves, domesticated operations are no lifelong tolerable to digest supercharge development, and the substantial seeks other avenues of growth. digest the considerations that need to be interpreted if the trusty is contemplating a strategical bond paper with a unlike partner. 15 marks (b) exempt the passing among inner(a) backing and outer financing for a outside(prenominal) subsidiary and give dickens examples of national financing. 10 marks Total marks 25 -END OF QUESTION PAPER- rapscallion 3 of 3