BCom TY BCom Sem 6 BCom Sem 6 (2017 2018) April 2018 BUS. ECONOMICS Question Paper - Mumbai University | munotes

Questions asked in this paper

• Please check whether you have got the right question paper
• 2. Figures to the right indicate full marks

1. Q3 Draw neat and clear diagrams wherever necessary
2. Q1 Attempt any two of the following: 15 marks
   • a) Explain Heckscher-Ohlin theory of international trade
   • b) Discuss different types of terms of trade
   • c) Explain the various gains from international trade
3. Q2 Attempt any two of the following: 15 marks
   • a) Explain the causes of disequilibrium in the balance of payments
   • b) Discuss India’s Balance of Payments position since 1991
   • c) Explain the agreements on TRIPS and TRIMS under WTO
4. Q3 Attempt any two of the following: 15 marks
   • a) Explain the arguments for and against fixed exchange rate system
   • b) State and explain spot and forward exchange rates with suitable examples
   • c) Explain the concepts of Hedging and Speculation in foreign exchange market
5. Q4 Attempt any two of the following: 15 marks
   • a) Explain the determination of foreign exchange rate with the help of demand for and supply of
   • b) Critically evaluate the purchasing power parity theory
   • c) Discuss the role of RBI in foreign exchange rate management since 1991
6. Q5 A) State with reasons, whether the following statements are true or false. (any four) 8 marks
   • i) Factor intensity is measured in absolute terms does not affect terms of trade ili) Balance of payments records only the payments made by a country to the rest of the world
   • iv) A chronic and persistent long term disequilibrium is called ‘Fundamental Disequilibrium’
   • v) Under “free float” the central bank controls exchange rate
   • vi) Flexible exchange rate leads to more speculation
   • vii) Import of capital generates supply of foreign exchange India has full convertibility of rupee on capital account C0146 BACHELOR OF COMMERCE (B.COM.)(CBSGS)(75:25)SEM VI /C0191 BUSINESS ECONOMICS. PAPER VI
   • Q.P. Code : 32369
   • B) Choose the correct answer and rewrite the sentences. (any seven) 7
7. Q1 According to Ricardo, international trade is beneficial under
   • c) Equal differences in cost d) None of the above
   • ii) According to Heckscher — Ohlin theory, product price depends on
   • c) factor cost d) All of the above
   • iii) An offer curve
   • a) differs from an usual demand curve only
   • b) differs from an usual supply curve only
   • c) differs from both usual demand and supply curve
   • d) is like demand and supply curves
   • iv) In the balance of payments external borrowing is treated as
   • c) invisible flow d) none of the above
   • v) is not the cause of deficit in the balance of payments
   • a) Increase in imports b) Fall in exports c) Capital outflows d) Capital inflows
   • vi) Under WTO agreement is deals with trade in services
   • a) GATS b) TRIPS c) TRIMS d) All of the above
   • vii) Under flexible exchange rate system, the exchange rate is determined by
   • a) the central bank b) the forex market
   • c) the government d) all of the above Arbitrage in the foreign exchange market refers to
   • a) arbitrary exchange rate between the two markets
   • b) purchase and sale of an asset for the same price
   • c) Purchase of currency in a low price market and its sale in a higher price market
   • d) none of the above
   • ix) Under the “managed float” the Central Bank of a country intervenes
   • c) purchase and sell foreign exchange as per the requirement
   • d) none of the above
   • x) LERMS was introduced in x1) Under Sterilized intervention policy, RBI will
   • a) Use OMO b) Purchase foreign currencies c) sell foreign currencies d) none of the above
   • xii) A currency that is universally accepted is known as
   • a) nominal vehicle currency _c) depreciated none of the above C0146 BACHELOR OF COMMERCE (B.COM.)(CBSGS)(75:25)SEM VI /C0191 BUSINESS ECONOMICS. PAPER VI
   • Q.P. Code : 32369 Please check whether you have got the right question paper
   • F) HU at) Al S AN)
   • ii) St
   • iv) AAA vi) C0146 BACHELOR OF COMMERCE (B.COM.)(CBSGS)(75:25)SEM VI /C0191 BUSINESS ECONOMICS. PAPER VI
   • Q.P. Code : 32369 vii) viii)
   • i) ad
   • ii) a iii)
   • iv) ast
   • vi) Bl
8. Q3 GATS 8) viii) ix) C0146 BACHELOR OF COMMERCE (B.COM.)(CBSGS)(75:25)SEM VI /C0191 BUSINESS ECONOMICS. PAPER VI
   • Q.P. Code : 32369 xi) xii)

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