Gauhati University Question Papers:Financial Institutions and Markets (Finance Major) (Nov-Dec’ 2014)


2014
FINANCIAL INSTITUTIONS AND MARKETS
(Finance Major)
Full Marks: 80
Time: 3 hours
(The figures in the margin indicate full marks for the questions)
1. Select the most appropriate answer from the multiple choices given against each:  1x5=5

1)         Which of the following is not a money market instrument?
a)         Treasury Bill.
b)         Commercial Paper.
c)          Promissory Note.
d)         Debentures.
2)         Which of the following governs the capital market?
a)         The SEBI Act 1992.
b)         The Depositories Act 1996.
c)          The Securities Contract (regulation) Act 1956.
d)         All of the above.
3)         Mr. X has 100 shares of Reliance Ltd. which he had purchased one year back. He wants to sell it now. In which of the following market he would be able to sell?
a)         Primary money market.
b)         Secondary money market.
c)          Primary capital market.
d)         Secondary capital market.
4)         Money Market is regulated by:
a)         RBI.
b)         SEBI.
c)          Both (A) and (B)
d)         None of the above.
5)         Reverse-repo implies:
a)         Injection of liquidity in money market.
b)         Absorption of liquidity in money market.
c)          Injection of liquidity in capital market.
d)         Absorption of liquidity in capital market.
2. Answer the following questions in about 50 words each:                           2x5=10
a)         What are the functions of a central cooperative bank?
b)         State the functions of a merchant banker.
c)          State any two differences between banking and non-bank companies.
d)         Mention the various regulatory authorities in the Indian Financial Market.
3. Answer any five of the following in about 200 words each:                           5x5=25
a)         What do you mean by equilibrium in financial market?
b)         Briefly explain the features of commercial paper.
c)          Distinguish between commercial bank and development bank.
d)         How is REPO useful in maintaining liquidity on money market?
e)         What steps had been taken by the SEBI in protecting the investors' interest?
f)          Distinguish between money market and capital market.
g)         Write a short note on demutualization of stock exchanges.
4. Discuss the types of financial markets and their inter-relationship.                     10
Or
Examine the relationship between financial system and economic development.               10
5. State the salient features and function of cooperative banks. Also discuss their weaknesse       10
Or
What are the various types of Non-banking Finance Companies? Briefly discuss their functions.  10
6. Treasury bills are an important short-term source of finance for the government’. Discuss.         10
Or
Discuss the impact of reforms in the secondary market in India.                                10
7. State the power and functions of the SEBI in detail.                                 10
Or
Discuss the role of the Reserve Bank of India as a regulator of financial system.            10

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