BCom TY BCom Sem 6 BCom Sem 6 (2016 2017) April 2017 BUSINESS ECONOMICS 7th Question Paper - Mumbai University | munotes

Questions asked in this paper

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• 2. Figures to the right indicate full marks

1. Q1 Attempt any two of the following :- 15 marks
   • a) Discuss how factor intensity and factor abundance will influence the international trade with the help of suitable illustration
   • b) Explain gross factor terms of trade and income terms of trade with limitations
   • c) Describe the gains from trade with the help of offer curves
2. Q2 Attempt any two of the following :- 15 marks
   • a) What are the causes of disequilibrium in the balance of payments? Discuss
   • b) Discuss the changes in India’s balance of payments since 1991, with reference to balance of trade, current account and capital account
   • c) Explain the important aspects of TRIPS and GATS under WTO
3. Q3 Attempt any two of the following :- 15 marks
   • a) Write note on dealers in foreign exchange market
   • b) Distinguish between spot and forward exchange rates
   • c) Define the concepts of Hedging and Arbitrage and explain how they are useful in the
4. Q4 Attempt any two of the following :- 15 marks
   • a) Explain the determination of rate of exchange with the help of suitable diagram
   • b) Discuss the assumptions and limitations of purchasing power partity Theory
   • c) the role of central bank in foreign exchange market
5. Q5 a) State with reasons, whether the following statements are true or false :- (any four) 8 marks
   • i) Trade will not take place in case of absolute cost differences between the countries
   • ii) If the import price is less than the export price, terms of trade is unfavourable to the
   • iii) Depreciation of a currency make the imports cheaper
   • iv) India is a founder member of WTO
   • v) Commercial banks participate in the foreign exchange market
   • vii) Exports generate supply of foreign exchange
   • viii) Currently, India follows the managed flexible exchange rate system
   • b) Choose the correct answer and rewrite the statements :- (any seven) 7
   • i) and double factoral terms of trade were developed by
   • ii), Reciprocal demand is expressed in terms of
   • c) Offer curves d) None of these
   • iii) produces a variety of exports it will have
   • a) Adverse terms of trade b) Favourable terms of trade change in terms of trade d) None of these
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   • iv) The current account of balance of payments does not include
   • a) Balance of visible trade b) Import of services
   • v) The success of devaluation depends on
   • a) Nature of imports and Elasticity of demand for import and export
   • c) International Co-operation d) All of the above
   • vi) TRIMS include measures to
   • a) Treat foreign investment on par with domestic income
   • c) Treat foreign investment on par with domestic investment
   • d) None of the above
   • vii) Which of the following will increase the supply of foreign exchange ina country
   • a) Areduction in exports
   • b) Arise in import of goods
   • c) unilateral payments
   • d) Arise in foreign investment
   • viii) deals in the foreign exchange market
   • c) Travel agents d) All of the above
   • ix) Simultaneous buying of a currency in one market & selling in another to make a profit is known
   • a) Speculation b) Hedging
   • c) Arbitrage d) None of the above
   • x) The relationship between demand for foreign exchange and exchange rate is
   • a) Direct b) Inverse
   • c) Negative d) None of these
   • xi) The purchasing power parity theory was introduced by
   • xii) With the breakdown of the gold standards the lost significance in the exchange market
   • a) of payment theory
   • d) None of these
   • Q.P. Code :02006 Please check whether you have got the right question paper
6. Q3 AY
7. Q3 FUSE HT
8. Q2 a at car
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   • ii) Wert
   • iii) ela at iv)
   • vi) (TRIMS)
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   • vii) Heras viii)
   • ix) SANTA xi)
   • xii) ASE
9. Q3 fic eta
   • Q.P. Code

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