2015
INDIAN FINANCIAL SYSTEM (CORE)
Full Marks: 80
Time: 3 hours
(The figures in the margin indicate full marks for the questions)
1. Choose the most appropriate answer from the multiple choices given against each: 1x10=10
1) “The financial system basically consist many institutions, instruments, services and markets.” This statement is –
a) True.
b) False.
2) Capital market deals in –
a) Short term fund.
b) Long term fund.
c) Short term and long term fund.
d) None of the above.
3) “Certificate of deposits is a negotiable money market instrument.” This statement is –
a) True.
b) False.
4) Bombay Stock Exchange was established in
a) 1935.
b) 1955.
c) 1875.
d) 1857.
5) Which one of the following is a nationalized commercial bank?
a) HDFC Bank.
b) ICICI Bank.
c) Industrial Bank.
d) Allahabad Bank.
6) Which one of the following is not a public sector bank?
a) Andhra Bank.
b) Dena Bank.
c) Axis Bank.
d) Vijaya Bank.
7) Generally, the best suited Mutual Fund to the retired people is:
a) Balanced Fund.
b) Growth Fund.
c) Income Fund.
d) Taxation Fund.
8) “Depository system is also known as scripless trading system”. The statement is –
a) True.
b) False.
9) Securities and Exchange Board of India Act was passed in the year.
a) 1992.
b) 1949.
c) 1980.
d) 1982.
2. Answer the following questions in about 50 words each: 2x5=10
a) Briefly explain two weaknesses of Indian financial system.
b) Distinguish between primary market and secondary market.
c) Mention two features of Cooperative Bank.
d) What is credit rating?
e) What is hire-purchase system?
3. Answer any four of the following questions in about 200 words each: 5x4=20
(a) “The functions of a good financial system are manifold.” Explain.
(b) What are the major institutions of money market? Explain.
(c) Distinguish between Commercial Bank and Rural Bank.
(d) Explain the advantages of Mutual Funds.
(e) Distinguish between Financial lease and Operating lease.
Or
Discuss briefly the basic characteristics of financial services.
(f) State the scope of Securities Contracts (Regulation) Act, 1956.
4. Explain the concept of financial system. Discuss the components of formal financial system. 2+8=10
Or
“A well developed financial system contributes significantly in the economic development of a country.” Explain. 10
5. What is Capital Market? Explain the functions of Capital Market. Distinguish between Capital market and Money Market. 2+4+4=10
Or
Explain the methods of issue of stock in Primary market. 10
6. What do you mean by ‘Non-banking financial institutions’? What are the various types of Non-banking financial institutions of India? Distinguish between Banking and Non-Banking financial institutions. 2+4+4=10
Or
Explain the advantages of Depository system and Credit rating to the investors. 5+5=10
7. Give an overview of regulatory framework of Indian Financial System. 10
Or
Explain the main functions of Reserve Bank of India. 10
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