B.Com. (Financial Management) SEM IV 2018 19 April 2018-19 BUSINESS ECONOMICS II Question Paper - Mumbai University | munotes

Questions asked in this paper

• (2) Figures to the right indicate full marks

1. Q1 A) State whether the following statements are True OR False: (Any 8) 8 marks
   • 1. The concept of national income is a monetary measure
   • 2. Trade cycle is recurring in nature
   • 3. The precautionary demand for money is utilized for unforeseen contingencies
   • 4. Cost push inflation is also called as wage-spiral inflation
   • 5. Government intervention helps to reduce the impact of market failure
   • 6. Income tax is not a type of direct tax
   • 7. Ricardo’s theory is based on absolute difference in cost
   • 8. Arbitrage does not help to equalize the exchange rate
   • 9. Quotas are less effective than tariffs
   • 10. Foreign Direct Investment (FDI) does not involve transfer of technology
2. Q1 B) Match the following pairs- (Any 7) 7 marks
3. Q2 Discuss the circular flow of income in a two sector economy. 8 marks
   • B) Highlight the four main phases of a trade cycle. 7
   • C) Examine Keynes principle of effective demand. 8
   • D) Explain the working of multiplier with a suitable example and diagram. 7
4. Q3 Briefly explain the Keynesian approach to demand for money. 8 marks
   • B) Explain in detail velocity of circulation of money. 7
   • C) Discuss the effects of inflation on production and consumption. 8
   • D) Outline the main objectives of monetary policy. 7
   • A) Highlight the principle of sound finance. 8
   • B) Analyze the various canons of taxation. 7
   • C) Describe the main features of FRBM Act 2003. 8
   • D) Define public debt. Explain its various types. 7 Discuss the arguments for fixed exchange rate. 8
   • B) Describe the structure of balance of payments. 7
5. Q5 Write short notes on the following :(Any 3) 15 marks
   • d) Role of Multinational Corporations (MNCs)
   • e) Net barter and Gross barter terms of trade

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