BCom In Accounting & Finance (BCAF) SEM III 2017 2018 March 2018 ECONOMICS Question Paper - Mumbai University | munotes

Questions asked in this paper

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• N.B: 1. Attempt all questions

1. Q2 All questions carry equal marks
2. Q1 Answer any two 15 marks
   • a) Explain the circular flow of income and expenditure in an open economy
   • b) Explain the phases of Trade cycle
   • c) Explain the Theory of multiplier Answer any two 15
   • a) Discuss the different concepts of money supply and its determinants
   • b) Explain the fisher’s equation of exchange
   • c) Explain the effects of inflation
3. Q3 Answer any two 15 marks
   • a) Explain the objectives of fiscal policy
   • b) Explain the classification of public debt
   • c) Explain the important features of FRBM Act, 2003
4. Q4 Answer any two 15 marks
   • a) Explain Ricardian theory of comparative cost
   • b) What are the different types of foreign direct investment?
   • c) Explain the advantages of flexible exchange rate
5. Q5 A) Explain the following concepts (any four) 8 marks
6. Q2 Aggregate demand 3). Inflation
7. Q4 Balanced growth
8. Q5 Free trade
9. Q6 Currency appreciation
   • B) Multiple choice question ( any seven) 07
10. Q1 National income of a country is the total market value of ------ goods and services produced in the economy during a year
    • a) Final
    • b) Intermediate
    • d) None of the above
    • a) Prosperity
    • b). Recession
    • c) Recovery
    • d) All of the above
    • Q.P. Code :23404
11. Q3 Inflation is a state in which the value of money is
    • a) Constant
    • b) Rising
    • c) Falling
    • d) None of the above
12. Q4 Which one of the following is not a selective method of credit control
    • a) Margin requirement
    • b) Rationing credit
    • d) Direct action
13. Q5 Public revenue , public expenditure and public debt are all
    • a) Functions of public finance
    • b) Government decisions
    • c) Costs of public
    • d) None of the above
14. Q6 Which one of the following favoured a balanced budget
    • a) Classical economists
    • c) F.H.Knight
15. Q7 According to Ricardo international trade is beneficial under
    • a) Absolute cost
    • b) Comparative cost
    • c) Equal difference in cost
    • d) None of the above open economy is equal to None of the above
16. Q9 Which of the following represents fisher’s equation?
    • a) MV=PT
17. Q10 Terms of trade are favorable, if the current index in comparison to the base year
    • a) Less
    • c) Same

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