Vskills certification for International Finance Analyst assesses the candidate as per the company’s need for managing financial matters of international nature. The certification tests the candidates on various areas which includes theories and strategies involving exchange rates, balance of payments¸ foreign exchange, euro-currency market, spot and forward market, currency futures and option pricing

1. Certified International Finance
Analyst
VS-1205

2. Certified
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CCCCertifiedertifiedertifiedertified International Finance AnalystInternational Finance AnalystInternational Finance AnalystInternational Finance Analyst
Certification CodeCertification CodeCertification CodeCertification Code VS-1205
Vskills certification for International Finance Analyst assesses the candidate as per the
company’s need for managing financial matters of international nature. The certification
tests the candidates on various areas which includes theories and strategies involving
exchange rates, balance of payments¸ foreign exchange, euro-currency market, spot and
forward market, currency futures and option pricing.
Why shouldWhy shouldWhy shouldWhy should one take this certification?one take this certification?one take this certification?one take this certification?
This Course is intended for professionals and graduates wanting to excel in their chosen
areas. It is also well suited for those who are already working and would like to take
certification for further career progression.
Earning Vskills International Finance Analyst Certification can help candidate differentiate
in today's competitive job market, broaden their employment opportunities by displaying
their advanced skills, and result in higher earning potential.
Who will beneWho will beneWho will beneWho will benefit from taking this certification?fit from taking this certification?fit from taking this certification?fit from taking this certification?
Job seekers looking to find employment in finance, international finance or accounts
departments of various companies, students generally wanting to improve their skill set and
make their CV stronger and existing employees looking for a better role can prove their
employers the value of their skills through this certification.
Test DetailsTest DetailsTest DetailsTest Details
• Duration:Duration:Duration:Duration: 60 minutes
• No. of questions:No. of questions:No. of questions:No. of questions: 50
• Maximum marks:Maximum marks:Maximum marks:Maximum marks: 50, Passing marks: 25 (50%)
There is no negative marking in this module.
FeeFeeFeeFee StructureStructureStructureStructure
Rs. 3,500/- (Includes all taxes)
Companies that hire VskillsCompanies that hire VskillsCompanies that hire VskillsCompanies that hire Vskills International Finance AnalystInternational Finance AnalystInternational Finance AnalystInternational Finance Analyst
International Finance Analysts are in great demand. Companies specializing in foreign
exchange, hedging, option trading or international financial services are constantly hiring
skilled international finance analysts. Various public and private companies also need
international finance analysts for their finance, international finance or accounts
departments.

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Table of ContentTable of ContentTable of ContentTable of Contentssss
1.1.1.1. IntroductionIntroductionIntroductionIntroduction
1.1 The Challenge of International Finance
1.2 Finance Function in a Global Context
1.3 Global Financial Markets
1.4 Taxonomy of Financial Markets
1.5 Percentage of GDP Arising from Exports
1.6 Getting a Grip on Globalization
2.2.2.2. Offshore MarketsOffshore MarketsOffshore MarketsOffshore Markets
2.1 Euro or Offshore Markets: What are They?
2.2 Evolution of Offshore Markets
2.3 Interest Rates in the Global Money Markets
2.4 Sample Problems
3.3.3.3. The Monetary SystemThe Monetary SystemThe Monetary SystemThe Monetary System
3.1 Introduction
3.2 Objectives of IMF
3.3 Fund’s Role of Consultation
3.4 Sources of Funds – Quotas
3.5 Share Capital of IMF
3.6 Other Sources of Funds
3.7 Fund’s Lending Operations
3.8 Standby Arrangements
3.9 IMF Charges
3.10 Other Facilities
3.11 Exchange Rates and Par Values
3.12 International Monetary Reforms
3.13 International Liquidity
3.14 Need for Reserves
3.15 Composition and Level
3.16 Adequacy of Reserves
3.17 Problems of Liquidity
3.18 Augmentation of Liquidity
3.19 Special Drawing Rights (SDR)
3.20 SDRs in India
3.21 India’s IMF Net Position
3.22 Additional SDRs
4.4.4.4. Classic Systems of Exchange RatesClassic Systems of Exchange RatesClassic Systems of Exchange RatesClassic Systems of Exchange Rates
4.1 The Classical Gold-standard System
4.2 Price Adjustment under the Gold Standard
4.3 Price Adjustment under the Gold-Exchange and Dollar Standards

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5.5.5.5. AlternAlternAlternAlternative Systems Of Exchange Ratesative Systems Of Exchange Ratesative Systems Of Exchange Ratesative Systems Of Exchange Rates
5.1 The European Monetary System (EMS)
5.2 Price Adjustment under the EMS
5.3 Hybrid Systems of Exchange Rates
5.4 Mixed Fixed and Flexible Rates
5.5 Cooperative Intervention in Disorderly Markets
5.6 Target Zones
6.6.6.6. Balance of PaymentsBalance of PaymentsBalance of PaymentsBalance of Payments
6.1 Introduction
6.2 Balance of Payments Accounting
6.3 Debits and Credits
6.4 Balance of Payments Statement
6.5 The Current Account
6.6 The Capital Account
6.7 Debit and Credit Entries
6.8 Balance of Payment Crisis
7.7.7.7. Foreign Exchange MarketForeign Exchange MarketForeign Exchange MarketForeign Exchange Market
7.1 Definition
7.2 International Financial System and Foreign Exchange Market
7.3 Foreign Sector and Foreign Exchange Market
7.4 Banks Purchase and Sale
7.5 Instruments of Credit Traded
7.6 Foreign Exchange Market Components
7.7 Gustav’s Theory
7.8 Limitations
7.9 Spot and Forward Rates
7.10 Speculation
7.11 Arbitrage
7.12 Indian Foreign Exchange Market
7.13 Exchange Dealers
7.14 RBI and Exchange Market
7.15 Floating Vs Fixed Exchange Rates
7.16 RBI Policy Applied to Banks
7.17 Trading by Banks
7.18 Spot Trading Operations
7.19 Exchange Rates in India
7.20 Cross Currency Deals
7.21 Mismatch - Need for Matching
7.22 Forex Management
7.23 Explanation of Cross Rates
7.24 Derivative Products
7.25 Forward Contracts
7.26 Swaps

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7.27 Futures and the Options
7.28 Forward Rate Agreements (FRA)
7.29 Forward and Future Contracts
7.30 Currency and Interest Rate Swaps
7.31 Sodhani Committee Report ()
7.32 Capital Account Convertibility Measures
8.8.8.8. EuroEuroEuroEuro----Currency MarketCurrency MarketCurrency MarketCurrency Market
8.1 International Money and Capital Markets
8.2 Exchange Markets vs Currency Markets
8.3 Origins of the Euro-Currency Markets
8.4 Dealers in the Market
8.5 Euro-bond Markets
8.6 Magnitude of Trade
8.7 Euro Bond Clearing and Settlement System
8.8 Petro-Dollar Market
9.9.9.9. International Financial InstitutiInternational Financial InstitutiInternational Financial InstitutiInternational Financial Institutionsonsonsons
9.1 International Finance Corporation
9.2 The Multilateral Investment Guarantee Agency (MIGA)
9.3 A Global Cooperative
9.4 The IMF’s Financial Policies and Operations
10.10.10.10. Spot and Forward MarketSpot and Forward MarketSpot and Forward MarketSpot and Forward Market
10.1 Organization of the Foreign Exchange Market
10.2 The Mechanics of Spot Transactions
10.3 The Forward Market
11.11.11.11. Currency Futures and Options MarketsCurrency Futures and Options MarketsCurrency Futures and Options MarketsCurrency Futures and Options Markets
11.1 Futures Contracts
11.2 Basic Differences Contracts Futures between Forward and
11.3 Advantages and Disadvantages of Futures Contracts
11.4 Arbitrage between the Futures and Forward Markets
12.12.12.12. Options PricesOptions PricesOptions PricesOptions Prices
12.1 Option Pricing and Valuation
12.2 Reading Currency Futures and Options Prices
13.13.13.13. Swaps and Interest Rate DerivativesSwaps and Interest Rate DerivativesSwaps and Interest Rate DerivativesSwaps and Interest Rate Derivatives
13.1 Interest Rate and Currency Swaps
13.2 Interest Rate Swaps
13.3 Exhibit: Classic Swap Structure
13.4 Economic Advantages of Swaps
13.5 Interest Rate Forwards and Futures
13.6 Forward Rate Agreement
13.7 Eurodollar Futures

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14.14.14.14. Management of Foreign Exchange RiskManagement of Foreign Exchange RiskManagement of Foreign Exchange RiskManagement of Foreign Exchange Risk
14.1 What is Exchange Risk?
14.2 Translation Exposure
14.3 Transaction Exposure
14.4 The Exposure Problem
14.5 Tools and Techniques of Foreign Exchange Risk Management
15.15.15.15. Management of Translation ExposureManagement of Translation ExposureManagement of Translation ExposureManagement of Translation Exposure
15.1 The Monetary/Non-monetary Method
15.2 Temporal Method
15.3 The Current/Non-current Method
16.16.16.16. International Financial ManagementInternational Financial ManagementInternational Financial ManagementInternational Financial Management
16.1 Working Capital Management
16.2 Portfolio Management
16.3 Transfer Pricing
16.4 International Taxation
16.5 International M&A

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SampleSampleSampleSample QuestionsQuestionsQuestionsQuestions
1.1.1.1. Which exchangeWhich exchangeWhich exchangeWhich exchange----rate system does not require monetary reserves for officialrate system does not require monetary reserves for officialrate system does not require monetary reserves for officialrate system does not require monetary reserves for official
exchangeexchangeexchangeexchange----rate intervention?rate intervention?rate intervention?rate intervention?
A. Floating exchange rates
B. Pegged exchange rates
C. Managed floating exchange rates
D. Dual exchange rates
2222.... The Euro isThe Euro isThe Euro isThe Euro is ____________________________
A. the currency of EU member countries.
B. a weighted average of the currencies of EU member countries.
C. a currency, the value of which is determined by demand and supply.
D. a currency that is only traded offshore.
3333.... Which of the following is a function of money?Which of the following is a function of money?Which of the following is a function of money?Which of the following is a function of money?
A. a unit of account
B. a store of value
C. medium of exchange
D. All of the above are correct
4444.... Treasury Bonds areTreasury Bonds areTreasury Bonds areTreasury Bonds are
A. Both a store of value and a medium of exchange.
B. A store of value, but not a medium of exchange
C. A medium of exchange, but not a store of value.
D. Neither a store of value nor a medium of exchange
5555.... The price that the buyer of a call option pays to acquire the option is called theThe price that the buyer of a call option pays to acquire the option is called theThe price that the buyer of a call option pays to acquire the option is called theThe price that the buyer of a call option pays to acquire the option is called the
A. strike price
B. exercise price
C. execution price
D. premium
Answers: 1 (A), 2 (C), 3 (D), 4 (B), 5 (D)