B.Com In Investment Management SEM IV 2018 19 April 2018-19 INV. MGT BUSINESS ECONOMICS II Question Paper - Mumbai University | munotes

Questions asked in this paper

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

1. Q1 (A) State whether the following statements are True/ False (Any Eight ) 8 marks
   • 1. GNP is the total final output produced with inputs owned by the residents of a
   • 2. Savings are injections in the circular flow of income
   • 3. An increase in Statutory Liquidity Ratio leads to a fall in credit creation
   • 4. Inflation is beneficial to the creditors
   • 5. Fiscal policy deals with managing nation’s money and credit
   • 6. The concept of functional finance was popularised by A.P. Learner
   • 7. Comparative cost advantage theory of international trade is based on labour theory
   • 8. Trade balance is a part of capital account balance
   • 10. When the government interferes in the determination of exchange rate, it is called
2. Q1 B) Match the following pairs (any Seven): 7 marks
   • Q.P.Code: 35414
3. Q2 A) What is the significance of National Income accounting? 8 marks
   • B) Discuss the factors determining consumption function. 7
   • C) Discuss the stages of business cycles. 8
   • D)What is ‘investment multiplier’? Explain its working. 7
4. Q3 A). What do you understand by money supply? What are its determinants? 8 marks
   • B). Explain the qualitative instruments of monetary policy. 7
   • C). What is inflation? What is its effect on production and consumption? 8
   • D). Explain the ‘Fisher’s equation of exchange’? 7
5. Q4 A). Explain the principle of sound finance. 8 marks
   • B). Explain the burden of Internal Public Debt? 7
   • C). What do you understand by public debt? What are its kinds? 8
   • D). Discuss the features of Fiscal Responsibility and Budget Management Act, 2003. 7
6. Q5 A) What are the merits of Foreign Direct Investment? 8 marks
   • B). Explain the Hechsher Ohlin theory of factor endowment. 7
7. Q5 Write short notes on the following-(Any three): 15 marks
   • 1. Scope of macroeconomics
   • 3. Burden of public debt Gains from trade

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