2020
BA (VI Semester) Examination
ECONOMICS
Paper : BECO–609
( Monetary Economics and Financial Institutions )
Full Marks : 80
Pass Marks : 35%
Time : Three Hours
Section-I
1. Answer any five of the following questions : 2×5=10
(a) What are M1 and M2 money?
(b) Define money market.
(c) What are the financial assets of money demand?
(d) What do you mean by primary capital market?
(e) Explain the main objectives of RBI.
(f) What are the functions of SEBI?
(g) What are IS and LM curves?
Section-II
2. Answer any four of the following questions : 5×4=20
(a) What is reserve money?
(b) Explain the functions of capital market.
(c) Elucidate the sources of change in reserve money.
(d) Discuss the main functions of RBI in India.
(e) Explain the main functions of RRB.
(f) How does SEBI control the capital market in India?
(g) Explain the functions of primary capital market.
(h) Discuss the floating exchange rate.
Section-III
3. Answer any five of the following questions : 10×5=50
(a) Discuss the relationship between reserve money and money supply.
(b) Explain the exogenous concept of money supply.
(c) Discuss Friedman’s restatement of quantity theory of money.
(d) Explain how RBI control the activities of commercial banks.
(e) Discuss primary capital markets. How are these markets regulated?
(f) Explain the credit control mechanism of Central Bank.
(g) Discuss in brief the Mundell-Fleming model.
(h) Explain the fiscal policy under fixed and floating exchange rates.
(i) Evaluate the monetary policy under fixed and floating exchange rates.
