B.Com In Banking & Insurance (BCBI) Sem IV 2017 18 April 2017-18 ) BUS. ECONOMICS Question Paper - Mumbai University | munotes

Questions asked in this paper

• 2. Figures to the right indicate full marks
• 4. Attempt all questions

1. Q1 (a) State whether the following statements are True/ False (Any Eight) 8 marks
   • 1) Trade cycles are recurrent in nature li) Open economy is the one in which there are no exports and imports iil) Deflation is worse than inflation
   • iv) Objectives of monetary policy are conflicting in nature
   • v) Service tax is an indirect tax
   • vi) Fiscal policy is formulated by central bank
   • vii) | Modern theory begins where the Ricardian theory ends Spot exchange rate refers to the rate at which the transaction takes place at a
   • ix) When the payments are more than receipts, then there is said to be a surplus in the balance of payment xX) Protection is required to protect infant industries
   • b) Match the following pairs (Any seven) 7
   • 2) Value of MPC b) borrowing of the Government
   • 4) Quantitative Credit control d) GDP+ Income from abroad
   • 5) Public Debt e) lies between zero and one
   • 6) FRBM Act
   • 8) Trade deficit h)2003
   • 9) Heckscher-Ohlin Theory 1) Export minus Import of visible items
2. Q2 a) Define macroeconomics. What are the importance of macroeconomics? 8 marks
   • b) Explain the factors determining consumption function. 7
   • c) Explain effective demand with the help of the diagram. 8
   • d) Discuss Trade cycle in detail. 7
3. Q3 a) Describe the factors affecting velocity of circulation of money. 8 marks
   • Q.P. CODE: 38202
   • b) Discuss the nature of Inflation in a developing country. 7
   • c) What is monetary policy? Discuss the objectives of monetary policy. 8
   • d) What is money supply? Explain the factors determining money supply. 7
4. Q4 a) What are the factors influencing Incidence of taxation? 8 marks
   • b) Enumerate the significance of public expenditure. 7
   • c) Explain the principles of sound and functional finance. 8
   • d) Explain the burden of Public debt. 7
5. Q5 a) What are terms of trade? Explain the factors determining terms of trade. 8 marks
   • b) Explain the Heckscher — Ohlin theory. of international trade. 7
   • c) Discuss in detail foreign direct investment and foreign portfolio investment. 8
   • d) Explain the structure of balance of payment. 7
6. Q5 Write short notes (on any three): 15 marks
   • a) Relationship between National income and economic welfare
   • b) Fisher’s equation of exchange
   • c) Fiscal policy
   • d) Role of Multinational Corporation

Read from the scan above, so a character or two may differ. The scan is the original.