Questions::
1. Discuss the present foreign exchange policy. Elaborate the impact of the present policy on the economy and its trade and what suggestions can be given for the further trade policy.
2. How is derivative is used as a hedging instrument? By taking examples of derivative products traded in
global financial markets, explain the valuation and pricing process of derivatives.
3. Why do countries hold foreign exchange reserves. Discuss the position of foreign exchange reserves in India over a period of time and explain its impact on the economic positioning of the nation in global trade?
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