M.A. DEGREE EXAMINATION, NOVEMBER 2017
Third Semester
Economics
Elective — FINANCIAL ECONOMICS
(CBCS 2014 onwards)
Time 3 Hours Maximum 75 Marks
Part A (10 X 2 20)
Answer all questions.
1. What is money market?
2. Mention any two players of capital market.
3. What is new issue market?
4. What is secondary market?
5. Define financial derivatives.
6. What is put option?
7. What is right issue?
8. What is liquidity?
9. What is EURO issues?
10. State the objectives of NSE.
Sub. Code
4MEC3E1
AFF-4790
2
Ws15
Part B X 5 25)
Answer all questions by choosing either or
11. What is derivative market? What are the
components of the derivative market?
Or
Distinguish between capital market and money
market.
12. Explain the advantages of NSE.
Or
Distinguish between future contracts and forward
contracts.
13. Explain the relationship between volatility and
liquidity.
Or
What are the characteristics of future contracts?
14. Bring out the advantages of EURO issues.
Or
Explain the procedures for IPO.
15. List out the components of financial derivatives.
Or
Bring out the ownership pattern of capital issues.
AFF-4790
3
Ws15
Part C X 10 30)
Answer any three questions.
16. Explain the constituents of capital market.
17. Describe the types of new issue market.
18. Explain the functions of SEBI.
19. What is stock market volatility? Explain the various
measures for minimising it.
20. Explain the procedure for the issue of ADRs and GDRs.