2012
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) Money market refers to that part of debt market where the maturity is:
a) Less than one year.
b) Less than one month.
c) Less than six months.
d) More than one year.
2) ‘Growth Fund’, a type of mutual fund, assures growth in return. This statement is:
a) True.
b) False.
3) In private placement of equities, issuance is done to:
a) More than 50 persons.
b) Less than 50 persons.
c) More than 100 persons.
d) Less than 30 persons.
4) “Credit rating agencies determine the interest rate on securities.” This statement is:
a) True.
b) False.
5) Which of the following is true?
a) In secondary market, pre-issued securities are traded.
b) Secondary market may be a dealer based market.
c) Secondary market may be an auction based market.
d) All of the above.
6) Close-ended mutual funds are:
a) Closed for entry after the initial offering period.
b) Closed for exist before the date of redemption.
c) Both (a) and (b).
d) None of the above.
7) Which of the following is not a regulatory authority?
a) RBI.
b) SEBI.
c) NABARD.
d) None of the above.
8) CRISIL is a:
a) Merchant bank.
b) Private Bank.
c) Credit rating agency.
d) Non-banking finance company.
9) SEBI was established in the year:
a) 1988.
b) 1991.
c) 1992.
d) 1994.
10) Which one of the following is a short term financial instrument?
a) Certificate of deposits.
b) Commercial paper.
c) Treasury bill.
d) All of the above.
2. Answer the following in about 50 words each: 2x5=10
a) What is ‘Rolling Settlement’?
b) What do you mean by ‘Index Funds’?
c) State three financial options available for short term investment.
d) What is ‘depository’?
e) Define the term ‘securities’.
3. Answer any four of the following in about 200 words each: 5x4=20
a) Distinguish between money market and capital market.
b) Briefly discuss the role of SEBI.
c) Write a short note on ‘Chit Funds’.
d) Highlight the role of development banks.
e) State the functions of a merchant bank.
f) Write a short note on the weaknesses of cooperative banks in India.
4. Critically examine the link between financial development and economic development. 10
Or
What are the various components of financial system? Discuss their salient features. 4+6=10
5. Discuss the organizational structure of mutual funds in India. 10
Or
What is meant by financial leasing? How is it an alternative source of financing? Explain. 5+5=10
6. Describe the RBI directions governing acceptance of deposits by non-banking finance companies. 10
Or
Examine the role and importance or Rural banks in Indian Economy. 10
7. Make an assessment of various
Or
What are ‘repos’? State the different types of repos and their benefits. 4+6=10
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