No. of Printed Pages: 5 IEEC-019I
BACHELOR'S DEGREE PROGRAMME Term-End Examination December, 2016 00045 ELECTIVE COURSE: ECONOMICS EEC-019 INDIAN FINANCIAL SYSTEM
Time :2 hours Maximum Marks 50
Note:

Answer five questions in all, selecting two questions from Section-A, two questions from Section-B and Section-C question no. 9 which is compulsory.


Your answer to questions should be in about 400 words each in Section-A, about 300 words each in Section-B and 150 words in Section-Co


SECTION

1. Why are commercial banks required to maintain liquid assets with themselves and Cash Reserve with Reserve Bank of India? Explain the provisions of the relevant laws in this regard.

2. What do you understand by Dematerialisation of securities? What are its advantages? Describe the procedure adopted for this purpose.

3. What do you understand by Global Depository Receipts? Why are they issued and by whom Explain the mechanism involved and the Guidelines issued by the Government for this purpose.

4. Distinguish between any three of the following

Closed-end schemes and open-end schemes

Listing of securities and Rating of securities

Bridge loans and Infrastructure loans

Repo rate and Reverse Repo rate


SECTION

5. What is a Commercial Paper? How is it different from Commercial Bill of Exchange? Who issues these instruments and for what purposes Explain.

6. Narrate in brief the functions various World Bank agencies.

7. What is meant by Term Structure of Interest Rates? Explain the two types of yield curves with the help of diagrams and give reasons for the difference between them.

8. Describe the various financing activities of Small Industries Development Bank of India (SIDBI). Distinguish between Term Loans and Venture Capital.


SECTION

9. Explain any two of the following

Insider Trading

Special Drawing Rights

Treasury Bills

Deficit financing