BACHELOR'S DEGREE PROGRAMME
Term-End Examination
June, 2010
ELECTIVE COURSE: COMMERCE
ECO-9: MONEY, BANKING & FINANCIAL INSTITUTIONS
Time: 2 hours Maximum Marks: 50
(Weightage 70%)
Note: The paper contains three sections A, B and C. Necessary instructions are given in each section.
SECTION - A
Answer any two questions from this section. 2x12=24
- Explain the functions of a central bank with reference to the Reserve Bank of India.
- Why should inflation be controlled? Discuss the various measures to be adopted to control it.
- (a) Explain the difference between the bank and non-bank financial Intermediaries. (b) What are investment trusts ? Give two examples of such
trusts in India.
- Explain the objectives of the IMF. Discuss the role of Special Drawing Rights (SDRs) in meeting the growing demand for international liquidity.
SECTION - B
Answer any two questions from this section. 2 x 8=16
- Explain the role of commercial banks and their economic significance.
- Describe the primary and secondary functions of money.
- Explain the role of regional rural banks in providing rural credit.
- Who are the main participants in the foreign exchange market? Explain their activities in relation to the foreign exchange market.
SECTION - C
- Explain any two of the following: 2 x 5=10
- Evils of money
- Development Banks
- M1 and M2 measures of money supply
- System of managed float of foreign Exchange.
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