2017 (May)
COMMERCE
(General/Speciality)
Course:
603
(Indian Financial System)
Time:
3 hours
The
figures in the margin indicate full marks for the questions
(New
Course)
Full
Marks: 80
Pass
Marks: 24
1. Fill in the blanks: 1x4=4
a)
Financial institutions are also termed as ____.
b)
Commercial Banks Scheme, 1970 provides that the
board of directors of nationalized banks will be composed of ____ members
including chairman.
c)
The Treasury bill is government ____ for a short
period usually of 91 days duration.
d)
Primary market refers to the long-term flow of
funds from the surplus sector to the government and ____ sector through primary
issue of equity and debts.
2. State whether the following
statements are True or False: 1x4=4
a)
Commercial Bills are one of the instruments of
money market.
b)
Bull, Bear, Stag and Lame Duck are the
speculators who are active on Stock Exchange of India.
c)
Merchant bankers undertake the function of
purchase and sale of securities of the investors and provide portfolio
management.
d)
Capital market deals with buying and selling of
short-term investible fund.
3. Write short notes on (any
four): 4x4=16
a)
Marketable securities.
b)
Management of Reserve Bank of India.
c)
Role of NABARD in rural development.
d)
Need of Central Bank in India.
e)
Primary Market vs. Secondary market.
f)
Commercial paper.
4. What is financial system?
Discuss the major components of Indian financial system. 4+10=14
Or
Discuss about the regulatory
reforms in the Indian banking system. 14
5. Mention the causes of interest
rate reforms in respect of Indian commercial banks since 1991. Discuss about
the pattern of interest rate reforms in the post-liberalized era. 9+5=14
Or
“Regional rural banks are
important financial institutions of the rural credit structure of India.”
Comment 14
6. What do you mean by financial
markets? Who are the participants in financial markets? Why do they participate
in financial markets? Explain. 4+3+7=14
Or
What do you mean by New Issue
Market (NIM)? Mention the characteristics of NIM. Explain the role of New Issue
Market in Indian financial system. 3+4+7=14
7. Discuss the role of mutual
funds in the financial market of India. Mention the problems of mutual funds in
the country. 8+6=14
Or
Mention any two functions of
SEBI. Explain the powers and functions of SEBI regarding protection of the
interests of the investors.
(Old
Course)
Full
Marks: 80
Pass
Marks: 32
1. Fill in the blanks: 1x4=4
a)
NABARD was established in the year ____.
b)
The Reserve Bank of India is managed by ____.
c)
Treasury Bills are instruments of ____ market.
d)
Mutual funds were first started in ____ during
19th century.
2. State whether each of the
following statements is ‘True’ or ‘False’: 1x4=4
a)
Financial market comprises of Capital Market and
Money Market.
b)
Seasonal diversity is one of the defects of
Indian money market.
c)
Price stability is not an objective of monetary
policy of Reserve Bank of India.
d)
The main function of mutual funds is to mobilize
the savings of the general public and invest the same in the stock market
securities.
3. Write short notes on (any
four): 4x4=16
a)
Weaknesses of Indian financial system.
b)
Lender of last resort.
c)
Internet Banking.
d)
Portfolio management.
e)
Advantages of mutual funds.
f)
Underwriting.
4. Explain how financial system
of a country acts as a catalyst to economic development and also highlight the
significant changes in Indian financial system. 7+4=11
Or
What do you mean by financial
system? Discuss the various components of a developed financial system. 3+8=11
5. Explain the credit creation
process of the commercial banks. Mention some of the limitations of the
process. 7+4=11
Or
Discuss the recent developments
that have been taken place in the activities of the commercial banks. What
challenges do they face from the private sector banks? 7+4=11
6. Explain the significance of
the functions of the Central Bank as a banker’s bank and as bankers to the
government. 11
Or
What is Cash Reserve Ratio?
Discuss the salient features of the latest monetary policy of RBI. 2+9=11
7. What do you mean by financial
markets? Mention about the instruments of financial markets. Explain the role
of financial markets in India financial system. 3+4+5=12
Or
What is Merchant Banking? What
are the functions of merchant bankers? How can merchant banking be more popular
and effective? 3+4+5=12
8. Define Stock Exchange.
Mention its characteristics. Explain the role of SEBI and its weaknesses in the
development of Indian capital market. 2+3+6=11
Or
Discuss the role of Stock
Exchange in the Indian financial system. 11