| 1. |
(a) |
Answer the following :
| (i) |
Adam Smith's work on "Wealth of Nations" was published in
|
| (ii) |
According to Keynes, interest is a
| (A) | Fiscal phenomenon |
| (B) | Risky phenomenon |
| (C) | Monetary phenomenon |
|
| (iii) |
India's EXIM Bank is concerned with
| (A) | Foreign trade of India |
| (B) | India's import trade |
| (C) | India's domestic trade |
|
| (iv) |
According to Say's Law,
| (A) | Demand creates further demand |
| (B) | Supply is created by its own demand |
| (C) | Supply creates its own demand |
|
| (v) |
Money is considered to be a
| (A) | Most illiquid asset |
| (B) | Most liquid asset |
| (C) | Most dangerous asset |
|
|
1x5 |
|
(b) |
Fill in the blanks:
| (i) | The want satisfying power of a thing is called ________ |
| (ii) | Demand for a factor of production is called a ________ demand. |
| (iii) | The supply curve of labour for a particular person is partly ________ sloping. |
| (iv) | In BOP, ________ account deals with debts and claims. |
| (v) | In traditional agriculture, many workers' marginal production may be ________ |
|
1x5=5 |
|
(c) |
Define the following in not more than two sentences:
| (i) | Market; |
| (ii) | Long run equilibrium of the firm; |
| (iii) | Trade or business cycle; |
| (iv) | Lender of last resort; |
| (v) | Quota in IMF; |
| (vi) | Public Finance. |
|
1x6 |
| 2. |
Explain the process of credit creation by commercial banks. What are the limitations to credit creation? |
10+7 |
| 3. |
Explain the concept of liquidity preference. What part does liquidity preference play in the determination of rate of interest. |
5+12 |
| 4. |
(a) |
What are the causes of inflation? |
5 |
|
(b) |
What are the effects of inflation? |
6 |
|
(c) |
How would you control inflation? |
6 |
| 5. |
(a) |
Define central bank. How does it differ from a commercial bank? |
3+6 |
|
(b) |
Discuss the functions of the NABARD. |
8 |
