1. JOSEPH COLLEGE OF COMMERCE (Autonomous)

END SEMESTER EXAMINATION – MARCH/APRIL 2014

BBM – IV Semester

FINANCIAL MARKETS AND SERVICES

Duration: 3 Hours                                                                                       Max. Marks: 100

SECTION – A

1. I) Answer ALL the Each carries 2 marks.                    (10 x 2 = 20)

 

1. Well developed financial markets consisting of both deep and liquid markets are essential for a balanced financial system.
2. Write any four differences between Discounting and Factoring.
3. Explain four functions of a Stock Exchange.
4. Merchant Banking, although non-banking financial activity, resembles banking function.
5. Mention four differences between Futures and Options.
6. What is NASDAQ?
7. Write a note on CRISIL.
8. How does a financial institution help a business to manage its accounts receivables?
9. Mention four Regulatory Functions of SEBI.
10. i) After the collapse of Satyam it was taken over by ——————–.
11. ii) —————- has bought messaging app in a deal worth a total of $19bn (£11.4bn) in cash and shares.

SECTION – B

1. II) Answer any FOUR Each carries 5 marks.                             (4 x 5 = 20)
2. What are the differences between an Operating Lease and Financial Lease?
3. Write a brief note on five kinds of Option Contracts.
4. Mention five advantages and disadvantages of Listing of Shares.
5. What are Financial Services? Explain its Features.  Give two examples.
6. What financial service does the following pie-chart represent? Write a note about the same.

 

16. Explain the features of Factoring.

 

SECTION – C

III) Answer any THREE questions.  Each carries 15 marks.                      (3 x 15 = 45)

17. Explain any TEN functions of Merchant Banking.
18. Write a brief note on the following:
    1. Private Placements
    2. Any three Kinds of Risks associated with Derivatives

• Tripartite Lease

1. Moody’s and S&P
2. Certificate of Deposits and Commercial Papers

 

19. Briefly discuss the various stages in Venture Capital Financing.
20. What are the objectives of Credit Rating? Explain also the procedure for Credit Rating.
21. Write about any five capital market instruments.

 

SECTION – D

1. IV) Compulsory question.    (15 marks)

1. Credit rating started in USA in the late 19th century when early rating agencies began publishing financial analyses on railroad companies. The concept came to India in 1987 with the setting up of CRISIL.  But the turn of the 21st century brought a slew of problems for the credit rating agencies (CRAs) as they failed to detect signals of the collapse of companies like Enron Corp., King Fisher Airlines, and so on. The credit worthiness of the rating agencies and validity of the processes and methodologies adopted for rating began to be questioned and demands for strengthening regulations began to be made. The government began to pressurise SEBI to re-examine the role of credit rating agencies and proposed greater oversight of the rating firms’ anticompetitive practices and conflicts of interest. A few critics also proposed establishing a separate regulatory set-up to monitor the rating agencies. The major question revolved around the extent of regulatory involvement in ensuring the safety and soundness of the rating process. Experts felt that these regulations would change the very nature of the rating industry in the India.

Questions:

1. What are the objectives of CreditRating?
2. Discuss the credibility of credit rating agencies.

• What can be the solution, in your opinion, to the above mentioned setback?

 

 

Latest Govt Job & Exam Updates:

View Full List ...