JUNE 2021
B.A. ( VI Semester) Examination
ECONOMICS
Paper: BECO-609
(Monetary Economics and Financial Institutions)
Full Marks : 80
Pass Marks : 35%
Time : Three Hours
Notes: (i) Answer all questions.
(ii) The figures in the margin indicate full marks for the questions.
SECTION-I
1. Answer the following questions : 2x5=10
(a) What is a broad money?
(b) Explain the concept of Credit multiplier?
(c) What is securities market?
(d) What is the full form of IRDA?
(e) Explain the term internal balance?
SECTION-II
2. Answer any four of the following questions: 5x4=20
(a) Discuss the difference between endogenous and exogenous money supply.
(b) What are the factors on which the demand for money depends?
(c) Discuss the objectives of a Central Bank?
(d) Explain the main objectives of LIC
(e) What are the aims of expenditure changing and expenditure switching policies.
(f) Explain the objective of insurance repository.
SECTION-III
3. Answer any five questions: 10x5=50
(a) Explain the endogenous and exogenous concept of money supply.
(b) Critically examine Friedman’s Permanent Income Hypothesis.
(c) Briefly explain the difference between Keynesian and Classical Approaches to money demand.
(d) Explain the credit creation process of commercial banks.
(e) Discuss the functions of SEBI.
(f) Analyze the different shapes of IS_LM-BP curves under money market.
(g) Explain the monetary policy under floating exchange rates.
