BCom SY BCom Sem 3 BCom Sem 3 (2016 2017) Sep 2017 ECONOMICS Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 Answer the following (Any 2) 15 marks
   • A. Circular flow of income in a two sector economy with saving and investment nks) B. Meaning and features of trade cycle
   • C. Concept and limitations of multiplier
2. Q2 Explain the following (Any 2) 15 marks
   • A. Constituents of money supply
   • C. Liquidity preference theory of interest
3. Q3 Answer the following (Any 2) 15 marks
   • A. Demand — pull inflation with suitable diagram
   • C. Terms related to inflation
4. Q4 Discuss the following (Any 2) 15 marks
   • A. Factors affecting liquidity of banks
   • B. Meaning and objectives of monetary policy Derivation of IS curve with its slope and shift
5. Q5 A.State whether the following statements are TRUE OR FALSE with reasons (Any 4) 8 marks
6. Q1 Savings for a leakage in the circular flow of income
7. Q2 Severe form of recession is depression
8. Q3 Demand deposits are included in traditional measure of money supply 4, Transaction and precautionary demand for money is interest inelastic Deflation is rise in general price level Share capital is not liability of a bank policy is made by central bank
9. Q5 B Fillin the blanks (Any 7) circular flow of income in an open economy 7 marks
10. Q2 The Multiplier — Accelerator Theory of trade cycles is associated
    • a) Dynamic (b) Constant
    • c) Neutral (d) None of the above
    • c) High powered money (d) All the above
11. Q5 According to classical economists people demand money because money
    • a) Store of value (b) Medium of exchange Both b (d) None of the above
12. Q6 At a very low rate of interest the liquidity preference curve becomes
13. Q7 Current inflation rate is referred to as ;
14. Q8 The causes of inflation are ‘
    • c) Population (d) All the above
15. Q9 inflation
    • a) Decrease (b) Increase
    • c) (d) Zero
16. Q10 Quantitative methods of credit control Ceiling on (d) Moral suasion
17. Q11 During deficit financing government than government expenditure
    • a) Less (b) Zero
    • c) More (d) Equal
18. Q12 The slope of LM curve is
    • a) Negative (b) Horizontal
    • c) (d) Positive

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