EC 4803 – MONETARY ECONOMICS – II

(Also equivalent to EC 4800)

Date & Time : 20-04-2006/FORENOON Dept. No. Max. : 100 Marks

PART – A

Answer any FIVE questions in about 75 words each. (5 ´ 4 = 20 Marks)

What do you mean by Currency chests? List out the advantages of currency chests.
Distinguish between Maximum fiduciary system and Minimum reserve system.
Write short note on REPO transactions.
Define a capital market.
Explain the concept of security analysis.
How can we control inflation?
Write a short note on indexation.

PART – B

Answer any FOUR questions in about 250 words each. (4 ´ 10 = 40 Marks)

Briefly explain the powers of the Reserve Bank of India.
State and explain the role of Social Banking in India.
“From the stand point of credit control, open market operations are complementary to Bank rate policy” – Discuss.
Discuss the objectives of portfolio management.
Bring out the features of undeveloped money market.
How is capital market helpful in promoting industrialization in India?
Discuss the techniques of monetary policy.

PART – C

Answer any TWO questions in about 900 words each. (2 ´ 20 = 40 Marks)

Critically examine various promotional functions of RBI in India.
Compare the merits and demerits of Unit banking versus Branch banking, Pure banking versus Mixed banking.
Discuss the role of RBI in controlling the growth of NBFIS.
Explain any one of the models of portfolio management.