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Reg. No. : ..................................... Name : ........................................
Final Year B.A. Degree Examination, March 2009 Part – III (Group – III) : ECONOMICS Paper – VI (Optional (B)): Banking (Old Scheme – Prior to 2005 Admn.) Time : 3 Hours
Max. Marks : 100
Instruction : Answers may be written either in English or in Malayalam. I. Choose the correct answer. Write only the alphabet. 1) The Governor of RBI at present is a) Y.Y. Reddy b) D. Subba Rao
c) Rangarajan
2) Capital Market regulator a) SEBI b) IMF
c) IDBI
3) Apex institution in the field of rural credit a) ICICI b) NABARD
c) SBI
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4) Nationalisation of 14 commercial banks was in a) 1956 b) 1969 c) 1981 5) The earliest type of credit instrument a) Bank notes b) Cheque
c) Promissory note (5×1=5 Marks)
II. State whether true or false : 6) Higher the CRR, more will be the liquidity with banks. 7) Monetary policy is the policy of Central Government. 8) Capital market deals with short term funds. 9) NABARD was set up in 1990. 10) Montek Singh Ahalluwalliah is the Deputy Chairman of Planning Commission. (5×1=5 Marks) P.T.O.
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III. Fill in the blanks : 11) The apex institution in the sphere of development banking in India is _________ a) ICICI
b) IDBI
c) IFCI
12) On 1st April 1935, ______________ was set up a) UTI
b) RBI
c) ICICI
13) One rupee note is issued by ______________ in India a) RBI
b) Ministry of Finance c) State Govt.
14) Dual functions of Industrial Finance Corporation are __________ a) Financier and promoter b) Financier and cordinator c) Promoter and cordinator
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15) Credit control measure adopted by the Central Bank is _____________ a) Banking Amendment Act b) Monetary Policy c) Nationalisation of Commercial Banks
(5Ă—1=5 Marks)
IV. Define any four of the following : 16) Cheque 17) Bank 18) Money market 19) Unit Banks 20) Open market operations.
(4Ă—1=4 Marks)
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V. Explain any seven of the following in not more than half-a-page each : 21) Commercial Paper 22) Capital Market 23) Branch Banking 24) Fixed Deposit 25) CRR 26) Fiscal Policy 27) IFCI 28) Bill of Exchange
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29) Bank Rate
30) Gilt-edged Securities.
(7Ă—3=21 Marks)
VI. Answer any six, each not exceeding one page : 31) Qualitative instruments of credit control. 32) Liquidity Vs Profitability. 33) Objectives of credit control. 34) Examine the relationship between short term and long term rates of interest. 35) Functions of Indian money market. 36) Objectives of Monetary Policy. 37) Explain the process of credit creation by commercial banks. 38) Explain the functions of SEBI.
(6Ă—5=30 Marks)
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VII. Write essays on any three of the following, each not exceeding three pages : 39) Explain the functions of RBI. 40) Discuss the justification for nationalisation of commercial banks in India. 41) Explain the traditional and modern functions of commercial bank. 42) Examine the characteristics of an organised money market. 43) Briefly explain the objectives and functions of NABARD. 44) Trace the influence of interest rate in investment and capital formation. 45) State the defects of the Indian Money Market. 46) Discuss the organisational set up of Co-operative Banking System in India. State the weaknesses of these institutions. (3Ă—10=30 Marks)
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