| 1. |
(a) |
Answer the following:
| (i) | Economics was defined as a science of choice amidst scarcity by
| (A) | Marshall; |
| (B) | Smith; |
| (C) | Robbins. |
|
| (ii) | Equilibrium means
| (A) | Stability; |
| (B) | Equality; |
| (C) | Balance. |
|
| (iii) | Optimum level of population means
| (A) | Maximum level of population; |
| (B) | "maximum returns" level of population; |
| (C) | maximum productive capacity. |
|
| (iv) | IDA (an affiliate of World Bank) stands for
| (A) | Indian Development Association; |
| (B) | International Development Association; |
| (C) | International Development Agency. |
|
| (v) | A firm is said to be in equilibrium in the long run when
| (A) | MR >MC; |
| (B) | AR>AC; |
| (C) | P=AR=MR=MC=AC. |
|
|
1x5 |
|
(b) |
Fill in the blanks:
| (i) | Marginal utility is the utility obtained from one __________ unit of thing. |
| (ii) | The factor cost of land is ____________ |
| (iii) | Capital is defined as ___________ __________ of production. |
| (iv) | Money is a _____________ of exchange. |
| (v) | Invisible items in the balance of payments indicates the value of exports and imports of ________. |
|
1x5 |
|
(c) |
Define the following terms in not more than two lines:
| (i) | Normal Price. |
| (ii) | Velocity of money |
| (iii) | Bank rate. |
| (iv) | GDP. |
| (v) | Concept of multiplier. |
| (vi) | Marginal propensity to consume. |
|
1x6 |
| 2. |
Explain the concept of liquidity preference. What part does liquidity preference play in the determination of rate of interest? |
5+12 |
| 3. |
(a) |
Briefly discuss the various items of balance of payments. |
10 |
|
(b) |
Examine the statement that "balance of payments always balances". |
7 |
| 4. |
What is money? Discuss the quantity theory of money as propounded by Irving Fisher. |
5+12 |
| 5. |
Explain the process of credit creation by commercial banks. What are the limitations to credit creation? |
10+7 |
|
|
SECTION II (50 marks)
|
| Answer Question No. 6 which is compulsory and any two from the rest |
| |
| 6. |
(a) |
Answer the following:
| (i) | A Co-operative society is
| (A) | Profit-oriented; |
| (B) | Service-oriented; |
| (C) | Economic-oriented. |
|
| (ii) | A public limited company can start its business after obtaining
| (A) | Certificate of Incorporation; |
| (B) | Certificate of Commencement of business; |
| (C) | Listing Certificate. |
|
| (iii) | MBO stands for
| (A) | Management by oppression; |
| (B) | Management by ownership; |
| (C) | Management by objective. |
|
| (iv) | Functions of a stock exchange do not include
| (A) | Providing a market for securities; |
| (B) | Safe guarding interests of investors; |
| (C) | Providing a machinery for settlement of conflicts among the brokers. |
|
| (v) | Important barriers to business communications are
| (A) | The long distance between the senders and the receivers; |
| (B) | The cost of sending and receiving communication; |
| (C) | Status levels and personal differences of opinion between the senders and the receivers. |
|
|
1x5 |
|
(b) |
State which of the following statements are "True" and which are "False".
| (i) | Shares of all companies are dealt in on stock exchange. |
| (ii) | 21 clear days' notice must be served to hold a Board meeting. |
| (iii) | Noise is every thing surrounding the entire spectrum of communication. |
| (iv) | Customs, cultural values, religious beliefs etc. do not affect a business. |
| (v) | The Government tries to restrict the activities of co-operative by the Act. |
|
1x5 |
|
(c) |
Define the following in not more than two lines:
| (i) | Convertible debenture |
| (ii) | Quorum. |
| (iii) | SWOT. |
| (iv) | Decoding. |
| (v) | Karta. |
| (vi) | Organic objectives |
|
1x6 |
| 7. |
Distinguish between: |
8+9 |
|
(a)
(b) |
Spot transaction and forward transaction;
Minute writing and report writing. |
| 8. |
Discuss the various stages in the formation of a public joint stock company. |
17 |
| 9. |
Define a meeting. What are the essential requirements of a valid meeting? |
3+14 |
| 10. |
Explain the role of stock exchange as a vital economic institution. What are the requirements for listing of shares in a stock exchange? |
10+7 |
__________ |
