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Reg. No. : .................................... Name : .........................................

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Final Year B.A. Degree Examination, March 2009 Part III Group III: ECONOMICS Paper VI Optional (i) : Banking and Public Economics (New Scheme 2005 Admn. Onwards)
Time : 3 Hours Max. Marks : 100

Instruction : Answers may be written either in English or in Malayalam. I. Choose the correct answer. Write only the alphabet. 1) Fiscal deficit minus interest payments is known as a) Revenue deficit c) Primary deficit b) Budget deficit d) All of the above

2) Taxes levied by union but collected and appropriated by States a) stamp duties c) excise duties b) terminal tax d) land revenue

3) Principles of Federal Finance is given by a) Alfred Marshall c) Adarkar b) Wagner d) Harrod Domar

4) Which one of the following is source of Internal Borrowing ? a) SBI c) IFC b) IMF d) IBRD

5) Which one of the following is a demerit good ? a) Education c) Road b) Sanitation d) Tobacco (51=5 Marks)
P.T.O.

1255 II. State true or false :

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6) Income from public enterprise is tax revenue. 7) The Chairman of the 10 th Finance Commission is Dr. C. Rangarajan. 8) The deficit budget should be adopted during the time of inflation. 9) The tax collection and income distribution is the function of Planning Commission. 10) The Principles of maximum social advantage was given by B.M.MinRass. (51=5 Marks) III. Fill in the blanks : 11) The Chairman of the 11th Finance Commission was ___________ [K.C.Panth / A.M.Kushroo] 12) Which of the following is Internal Borrowing ? ___________ [RBI / IMF] 13) Treasury bonds are ___________ debt. [Internal / External] 14) The first phase nationalisation of bank in ____________ [1969 / 1980] 15) NABARD is the _______ Bank. [Government / Private] IV. Define any four of the following : 16) Public wants 17) Excise duty 18) Capital levy 19) Public Finance 20) Money. (41=4 Marks) (51=5 Marks)

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V. Answer any seven of the following in not more then half a page each. 21) Types of money 22) Internal borrowing 23) Public Expenditure 24) Relationship between monetary and fiscal policies 25) Direct taxes 26) Sources of public borrowing 27) Write a short note in fiscal deficit 28) Commercial Bank 29) What are the objective of fiscal policy ? 30) Federal Finance. VI. Answer any six of the following. Each not more than one page. 31) Explain the public debt. 32) State the causes for the public borrowing. 33) Write a note on zero base budget in India. 34) List out the functions of fiscal policy. 35) Write a note on the allocation function of fiscal finance. 36) Examine the federal finance. 37) Explain the structure of local bodies in India. 38) Write a note on deficit financing. 39) Briefly discuss the role of Government in a mixed economy. 40) Distinguish between social and Merit wants. (65=30 Marks) (73=21 Marks)

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VII. Answer any three of the following not exceeding three page each. 41) Discuss the burden of public debt in India. 42) Explain the principle of maximum social advantage with reference to Dalton and Musgrave. 43) Discuss the various functions of Commercial Bank. 44) What are the reasons for the frictions in Central - State financial relations in India ? Examine the methods to remove these frictions. 45) Discuss the objectives of fiscal policy with special reference to developing countries like India. 46) Public expenditure is a most powerful weapon in the hands of the Government for bringing about an equitable distribution of wealth. Discuss. (310=30 Marks)