MARWADI UNIVERSITY

Faculty of Liberal Studies Enroll. No._________

[ B.com]
[ Indian Financial System ] SEM: 3 WINTER-2019
__________________________________________________________________________
Subject: - (Indian Financial System) (04BC0306) Date:-22/11/2019
Total Marks:-100 Time: - 03:00 hours

Instructions:
1. All Questions are Compulsory.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.

Question: 1.

(a) Objective MCQ [10]

(1) In India, Banking function is centrally controlled and governed by

(i) SBI
(ii) Central Bank of India
(iii) RBI
(iv) SEBI

(2) A RBI started functioning on

(i) 1-4-1935
(ii) 1-4-1948
(iii) 1-4-1882
(iv) 1-4-1945

(3) The oldest stock exchange in India is

(i) Bombay Stock Exchange

(ii) National Stock Exchange
(iii) Saurashtra & Kutch Stock Exchange
(iv) Ahmadabad Stock Exchange

(4) The basic regulatory authority for Stock Market & Mutual fund lies with the:

(i) Stock exchanges

(ii) RBI
(iii) NABARD
(iv) SEBI

(5) What are Gilt-edged Securities in India ?

(i) Securities issued by the Government

(ii) Securities issued by the Private Sector companies
(iii) Securities issued by the Multinationals
(iv) None of the above

MARWADI UNIVERSITY 1|
 Enroll. No._________
(6) NIFTY carries

(i) Top 50 companies from India

(ii) Top 50 companies listed on NSE
(iii) Top 30 companies listed on BSE
(iv) All of the above

(7) A stock market is a place where

(i) Stock buyers & sellers meet

(ii) Investors & companies meet
(iii) Traders & companies meet
(iv) RBI & SEBI meet

(8) Convertible Bonds are

(i) Equity instruments

(ii) Debt instruments
(iii) Hybrid instruments
(iv) Bank notes

(9) Money loaned by a bank or other institution which is repayable on demand called

(i) Risk premium

(ii) Capital receipt
(iii) Bank loan
(iv) Call Money

(10) The risk-return tradeoff states that:

(i) Investment in shares with low brokerages

(ii) NBFC’s investment
(iii) The potential return rises with an increase in risk
(iv) None of the above

(b) Short Que. (answer in one sentence) [10]

(1) What is Money Market?

(2) What is Mutual fund?
(3) Who is a basic regulator for Insurance companies?
(4) What is secondary market?
(5) What is T-bill?
(6) What it stands for OTCEI?
(7) What do you mean by an IPO?
(8) What are the types of Financial Derivative Instruments?
(9) What is India's largest custodian and depository participant?
(10) What is a dividend?

Question: 2.

(a) Explain about Indian financial System, both organized and unorganized system. [08]

(b) Write a note on IRDA. [08]

OR

(b) Write a note on SEBI [08]

MARWADI UNIVERSITY 2|
 Enroll. No._________
Question: 3.

(a) Explain in detail about depository participants, custodial services and Credit rating agencies. [08]

(b) Explain about factoring, its types, forfeiting and venture capital financing in detail. [08]

OR

(a) What is Forex market? Explain in detail. [08]

(b) Explain in detail about Hybrid instrument. [08]

Question: 4.

(a) Enumerate the functions of Commercial Bank in detail. [08]

(b) What is the corporate restructuring through Leveraged Buyout [04]

(c) What is Bill-discounting? [04]

OR

(a) Differentiate between Money market and Capital Market. [08]

(b) Explain the functions of RBI. [04]

(c) Explain the role of Stock exchange. [04]

Question: 5.

(a) State the functions of Regional Rural Banks. [08]

(b) Short note: Commercial Paper [04]

(c) Explain the types of Mutual Fund. [04]

OR

(a) State the functions/role of financial intermediaries in Indian financial system. [08]

(b) State the objectives of NABARD. [04]

(c) Why credit rating useful to borrowers of money? [04]

Question: 6.

(a) Describe the role of NBFC’s in economic development of India. [08]

(b) List down the new financial instruments available in the market. [04]

(c) Describe contributions of IFS in economic growth. [04]

OR

(a) Differentiate between fund based and fee based financial services. [08]

MARWADI UNIVERSITY 3|
 Enroll. No._________

(b) Explain about BSE, NSE & SENSEX and NIFTY. [04]

(c) Explain about Credit unions and Pension funds. [04]

---Best of Luck---

Remember/Knowledge 24 1a, 1b, 6b

Understand 32 2a, 2b, 3a, 3b,
Apply 08 5c, 6c
Analyze 24 4a, 4b, 4c, 6a
Evaluate 12 5a, 5b,
Higher order Thinking ** **

35
30
25
20
15
10
5
0

MARWADI UNIVERSITY 4|