LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034 B.A. DEGREE EXAMINATION – ECONOMICS
FIFTH SEMESTER – NOV 2006
EC 5502 – MONEY & BANKING
(Also equivalent to ECO 507)
Date & Time : 30-10-2006/9.00-12.00 Dept. No. Max. : 100 Marks
Part – A
Answer any FIVE questions in about 75 words each. (5 x 4 = 20 marks)
- Mention a few definitions of money.
- How does bad money drive out good money?
- How is an equity share different from a debenture?
- Mention the different measures of money stock in India.
- Differentiate between ordinary money and high-powered money.
- Distinguish between money market and capital market.
- Define a commercial bank.
Part – B
Answer any FOUR questions in about 300 words each. (4 x 10 = 40 marks)
- What are the various types of money?
- Explain the techniques of monetary policy employed by the RBI in India.
- Briefly discuss the various components of the money market.
- Explain the quantity theory of Milton Friedman.
- How does SEBI regulate the stock market in India?
- Examine the classical dichotomy and the neutrality of money.
- Mention the assets and liabilities of commercial banks.
Part – C
Answer any TWO questions in about 900 words each. (2 x 20 = 40 marks)
- Critically examine the transaction and cash balance approach to the quantity theory
- Explain how Keynes proves that changes in the monetary sector have an influence on
the real sector.
- Discuss how NBFI’s can make monetary policy ineffective in an economy.
- What are Index numbers? Explain the various steps involved in the construction of
Price Index Numbers.