MFP 4 Currency and debt markets

  1. Explain the meaning of Foreign Exchange? Describe the features of foreign exchange market and compare them with the other segments of financial markets.
  2. What is nominal and real exchange rate? Also explain the concept of real effective exchange rate. Discuss the economic factors impacting exchange rates.
  3. What are ‘Currency Futures’? Describe the various trading / investment strategies used in Futures Market.
  4. What is a Money Market? Explain in detail the dynamics of REPO (Repurchase Agreement).
  5. What is Interest Rate Futures (IRF)? Explain their application in Investment Strategies and Risk Management Strategies.