Dibrugarh University B.Com 6th Sem: Indian Financial System Question Papers (May'2020)



(General / Speciality)

Course: 603

(Indian Financial System)

Time: 3 hours

The figures in the margin indicate full marks for the questions

(New Course)

Full Marks: 80

Pass Marks: 24

1. (a) Fill in the blanks:   1x2=2

(i) Capital market deals in ______.

(ii) Bombay Stock Exchange was established in the year ________.

(b) State whether the following statements are True or False:  1x3=3

(i) Monetary Policy Committee of RBI is entrusted with the task of fixing repo rate.

(ii) SEBI was set up as a non-statutory body in the year 1888.

(iii) Financial markets are the markets that deal in fixed assets and credit instruments.

(c) Choose the correct answer:              1x3=3

(i) Which of the following categories of mutual fund is redeemable?

1. Open-ended fund

2. Close-ended fund

3. Both 1 and 2

4. None of the above

(ii) Which of the following financial institutions is not a sponsored bank of RBI?


2. SBI

3. UBI

4. NHB

(iii) Which of the following is a financial asset?

1. Land

2. Gold

3. Silver

4. Share

2. Write short notes on (any four):           4x4=16

(a) Components of Indian financial system

(b) Functions of indigenous banks


(d) Monetary policy of RBI

(e) Book building method

(f) The role of SEBI in respect of investor’s protection

3. (a) Explain the structure and significance of Indian financial system. State its role in economic development.  10+4=14


(b) Discuss the major reforms in Indian financial system during post-liberalization.    14

4. (a) Explain the need of Central Banking in India. Critically examine the traditional and modern functions of RBI.  4+10=14


(b) Write a note on the historical evolution of rural banks in India. Justify the need of such institutions in contrast to commercial banks. Distinguish between rural bank and commercial bank.      5+5+4=14

5. (a) Give the meaning of merchant banking. How can merchant banking be made more popular and effective? Discuss.        10+4=14


(b) Define money market. State the various defects of Indian money market. Suggest necessary measures to remove these defects for the development of Indian economy.        4+5+5=14

6. (a) Define mutual fund. How does mutual fund generate earnings? Discuss the features of mutual funds.   2+4=8=14


(b) What is SEBI? What are its objects? Discuss the role of SEBI in the development of Indian capital market.     3+4+7=14

(Old Course)

Full Marks: 80

Pass Marks: 30

1. (a) Fill the blanks:           1x3=3

(i) Money market refers to that part of debt market where the maturity is _______.

(ii) At present, the total number of nationalized commercial bank in India is ______.

(iii) SEBI was set up as a non-statutory body in the year _____.

(b) State whether the following statements are True or False:        1x2=2

(i) “The Indian money market does not deal in cash or money but in promissory notes, government paper.”

(ii) “The market for extremely short-period loans is called money market.”

(c) Choose the correct answer:        1x3=3

(i) Which of the following is a selective credit control measure of RBI?

1. Bank rate

2. Open-market operation

3. Rationing

4. Variable reserve requirement

(ii) Which of the following is a non-banking financial institution?

1. State Bank of India

2. Assam Gramin Vikash Bank

3. Industrial Finance Corporation of India

4. Yes Bank

(iii) Which of the following is an agency function of a bank?

1. Credit creation

2. Accepting deposit

3. Sale and purchase of stock exchange securities

4. Issuing letter of credit

2. Write short notes on (any four):   4x4=16

(a) Characteristics of Indian financial system

(b) Regional rural bank

(c) Difference between credit card and debit card

(d) Objectives of monetary policy

(e) “Stock exchange is the economic barometer of a country.”

(f) Advantages of mutual fund

3. (a) Define financial system. Critically examine the link between financial development and economic development. 2+9=11


(b) What are the various components of financial system? Discuss their salient features.     6+5=11

4. (a) What do you mean by ‘non-banking financial institution’? What are the various types of non-banking financial institutions of India? Distinguish between banking and nom-banking financial institutions.      4+4+4=12


(b) “Commercial bank is the foundation stone of modern commerce and industry.” Explain the statement.       12

5. (a) How does central bank act as a banker to the government? Analyze the monetary policy of RBI.           3+8=11


(b) Discuss about the constitution and management of RBI.   11

6. (a) What is financial market? Discuss the differences between money market and capital market.    3+8=11


(b) What is stock exchange? Discuss the various function of a stock exchange.      3+8=11

7. (a) What is meant by mutual fund? Discuss the various types of mutual funds prevalent in India.  3+8=11


(b) Explain the role of SEBI in Indian financial market.        11


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