Monetary System Question Paper 2009

I Semester M.Com. Degree Examination, February/March 2009

(2007-08 Scheme)(NS)

COMMERCE

Paper - 1.2: Monetary System

Time: 3 Hours                                                                       Max. Marks: 80

Section - A

1. Answer any ten of the following in about 3-4 lines each. Each sub-question carries
2 marks. (2X10=20)
a) What is devaluation?
b) What is forex market?
c) What is B.O.P.?
d) Define value of money?
e) Who are the dealers in foreign currency market?
f) What are index numbers?
g) What do you mean by capital account convertibility?
h) What is S.D.R.?
i) What are future markets?
j) What do you mean by International liquidity?
k) Define flexible exchange rate.
l) What is Fiat money?

Section

 - B

Answer any three from this section. Each question carries 5 marks.  (3X5=15)
2. Explain recent structural changes in the IMF.
3. What are the money market instruments? Explain.
4. "Euro-Bond market is the International market for borrowing capital". Explain.
5. Elucidate Bretton Woods system.
6. Define money and explain its functions.

Section 

- C

Answer any three questions from this section. Each question carries 15 marks.  (3X15=45) 

7. Explain the International monetary reforms.
8. Explain various theories of value of money.
9. Explain the system of note issue highlighting the principles of note issue.
10. Comment on the recent financial crisis in the stock market and its implications on the foreign institutional investors.
11. Explain the recent developments in foreign capital flows.