2016 (July)
COMMERCE
Paper: 206
(Indian Financial System)
Full Marks: 90
Time: 3 hours
The figures in the margin indicate full marks for the questions
1. Give direct answer: (any ten):    1x10=10
- What is Money Market?
 - What is ‘Financial Asset’?
 - What do you mean by ‘Non-Performing Assets’?
 - What is ‘Rural Banking’?
 - Define a Co-operative Bank.
 - Mention any one function of Central Bank.
 - Write the full form of ATM.
 - What is ‘Share Market’?
 - What do you mean by EMIM Bank?
 - Write the full form of IDBI.
 
2. Write short answer:      4x5=20
  - Characteristics of money market.
 - Interest Rates Reforms.
 - New Issue Market.
 - Needs of Central Banking.
 - Main functions of NABARD.
 
3. (a) What do you mean by Financial System? Mention the chief characteristics of Indian Financial System.                2+10=12
Or
 (b) Distinguish between Capital Market and Money Market. Also discuss the role of financial market in the economy of a country.      6+6=12
  4. (a) “Safety, liquidity and profitability are the three main principles of investment /loan policy” – Do you agree with this statement? Justify your answer. 
Or
 (b) Examine the structure of commercial banking system in India. Also mention the primary function performed by commercial banks.      6+6=12
5. (a) What are the selective methods of Credit Control? Discuss about the significance of these methods.  8+4
Or
 (b) What is the importance of Reserve Bank of India in the Indian economy? Mention its functions as ‘Bankers’ Bank’.     8+4=12
6. (a) Define Stock Exchange. What are its characteristics? Discuss the main functions of Stock Exchange.     2+4+6=12
Or
 (b) What is ‘Merchant Banking’? Give your comment on – How can Merchant Banking be made more popular.               3+9=12
7. (a) Write a note on the objectives and workings of IDBI.    6+6=12
Or
 (b) Discuss about the aims and objectives of IFCI.     6+6=12
