M.A. DEGREE EXAMINATION, NOVEMBER 2017
Third Semester
Economics
MONETARY ECONOMICS
(CBCS 2016 onwards)
Time 3 Hours Maximum 75 Marks
Part A (10 x 2 20)
Answer all questions.
All questions carry equal marks.
1. What is meant by "Money Sitting"?
2. What is real balance?
3. Mention any four determinants of money supply.
4. Define "Monetary Transmission".
5. What is the basis for interest according to the Classical
Theory?
6. What is meant by liquidity?
7. Define "Capital Market".
8. What is swap?
9. Define "Cheap Money Policy".
10. What relationship is explained by Phillips Curve?
Sub. Code
455301
RW-726
2
ws 4
Part B x 5 25)
Answer all questions choosing either or
All questions carry equal marks.
11. Explain Don Patinkin's Integration Theory.
Or
Explain Baumol's Inventory Approach.
12. Illustrate multiple-credit creation by commercial
banks.
Or
Give a summary of the Naasimham Committee's
recommendations.
13. Critically examine the Classical Theory of Interest.
Or
Explain the Expectation Theory of Interest.
14. What are primary and secondary markets?
Or
Explain the capital asset pricing model.
15. Elaborate the role of monetary policy in a
developing economy.
Or
Elucidate Stagflation.
RW-726
3
ws 4
Part C x 10 30)
Answer any three questions.
All questions carry equal marks.
16. Explain the Keynesian Theory of Money.
17. Discuss the methods of credit control by central bank.
18. Explain the Segmented Market Theory of Interest.
19. Explicate the characteristics of Indian Money Market.
20. Examine the impact of financial sector reforms in India.
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