LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.Com DEGREE EXAMINATION – COMMERCE
FIFTH SEMESTER – NOV 2006
C 532 – ADVANCED CURRENCY
Date & Time : 02-11-2006/1.00-4.00 Dept. No. Max. : 100 Marks
PART – A (8 x 3 = 24 marks)
Answer ALL questions. Each answer should not exceed 50 words. Each question carries 3 marks.
- Why is money so important in a capitalistic economy?
- Distinguish between transaction demand and asset demand for money?
- Explain speculated demand for money.
- State the objectives of exchange management and control.
- State the objectives of I.M.F
- Briefly explain the working of gold standard.
- What are the advantages having a fixed rate of exchange?
- Explain the consequences of the inflation.
PART – B (5 x 8 = 40 marks)
Answer any FIVE questions. Each answer should not exceed one page. Each question carries 8 marks.
- Explain the characteristics of the special drawing rights of I.M.F.
- Explain the stages of a trade cycle.
- How will you control inflation in a country?
- Explain the merits and demerits of the gold standard.
- Explain the factors that affect the propensity to consume.
- Explain the difference kinds of saving. How will you calculate the average propensity to save and the marginal propensity to save
- What role does money play in a socialistic country?
PART – C (2 x 18 = 36 marks)
Answer any TWO questions. Each answer should not exceed four pages. Each question carries 18 marks.
- How is the income theory better than the quantity theory?
- Explain the purchasing power parity theory of exchange.
- Explain the theories of trade cycles.
Latest Govt Job & Exam Updates: