[BA 5th Sem Question Papers, Dibrugarh University, 2014, Economics, Major, Monetary Theories and Finanical Markets]
1. Choose the correct answer/Answer the following/Write True or False: 1x8=8
- The speculative demand for money is
- Interest-inelastic.
- Income-determining, nor income-determined.
- Both (i) and (ii).
- None of the above.
- A situation of simultaneous high inflation and large-scale unemployment is called
- Disinflation.
- Reflation.
- Stagflation.
- Deflation.
- Who talked about ‘primary wave’ and ‘secondary wave’ of expansionary economic activity in the context of trade cycle?
- J. M. Keynes.
- Hawtrey.
- Samuelson.
- J. Schumpeter.
- Wealth theory of demand for money was propounded by
- Alfred Marshall.
- Robertson.
- Milton Friedman.
- A. C. Pigou.
- Define bank rate.
- The monetary base of a country is also known as
- Speed money.
- High-powered money.
- Bank reserves.
- None of the above.
- According to supply-side economists, stagflation arises on account of
- Increase in money wage.
- High marginal tax rates.
- Changes in inflationary expectations.
- All of the above.
- “The present value of a bond goes up with the increase in the market rate of interest.”
- True.
- False.
Answer the following within 500 words each:
2. (a) What is demand for money? Discuss the quantity theory approach to demand for money and critically evaluate it. 2+10=12
Or
(b) What are various measures of money supply in India? Explain how changes in supply of money can affect the rate of interest. 6+6=12
3. (a) Distinguish between ‘demand-pull’ and ‘cost-push’ inflation with the help of suitable diagrams. Examine the effects of inflation on distribution. 6+5=11
Or
(b) Define stagflation. Discuss the views of the monetarists and supply-side economists on the causes of stagflation. Briefly explain the measures that can be taken to combat stagflation. 2+5+4=11
4. (a) What is business cycle? Explain the features of different stages of business cycles. 2+9=11
Or
(b) Critically examine Hawtrey’s monetary theory of business cycle. Point out the policy implications of the theory. 8+3=11
5. (a) Define credit multiplier. Explain the process of multiple credit creation by the commercial banks. 2+9=11
Or
(b) What do you mean by selective credit control? In what ways are they superior to quantitative credit control? 2+9=11
6. (a) What is money market? Discuss the characteristics of a development money market. 2+9=11
Or
(b) Examine the banking sector reforms in India in the context of Narasimham Committee Report. 11
Also Read: Dibrugarh University Question Papers
7. Write short notes on any four within 150 words each: 4x4=16
- Deflation and its impact on production.
- Principles of portfolio management.
- Relationship among money supply, monetary base and money multiplier.
- Speculative demand for money.
- Open market operation.
- Liquidity trap.
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