QP Code : 53403

Even Semester End-Term Examination 2022 (August 2022)

B.Com. — IV Semester

INDIAN FINANCIAL SYSTEM (IFS)

Time : Two hours Maximum Marks : 50

Additional one (1) hour, over the aforementioned time, is provided for
upload and email of Answer Script.
SECTION A – (10 × 1 = 10 marks)

Answer ALL questions

Choose the correct option. Write the answer in the answer script.

1. Bank note of one rupee is issued by

(a) Government of India (b) State Government
(c) RBI (d) Finance Commission

2. For Which function, money is accepted as unit of account?

(a) Measure of value (b) Medium of exchange
(c) Standard of deferred payment (d) Store of value

3. Financial assets are —————— in nature.

(a) Homogeneous (b) Heterogeneous
(c) Both (d) None

4. RBI was established on 1st April, under the Reserve Bank of India Act
(a) 1934 (b) 1935
(c) 1936 (d) 1932

5. What is the full form of CRR?

(a) Cash Reserve Rate (b) Cash Reserve Ratio
(c) Cash Recession Ratio (d) Core Reserve Rate

6. In the definition of money supply M or M1 indicate

(a) C+R+OD (b) C+DD+OD
(c) C+H+OD (d) None

[Turn over
7. In India, which of the following have the highest share in the disbursement of
credit to agriculture and allied activities?
(a) Commercial Banks (b) Cooperatives Banks
(c) Regional Rural Banks (d) Microfinance Institution

8. What is the ideal of designing Regional Rural Banks?

(a) Works on basis of commercial banks
(b) Help the targeted groups
(c) Keep lending rates lower than cooperatives institutions
(d) Work on innovative and adaptive ideals

9. The Gilt edged market refers to the market for

(a) Government and semi government securities
(b) Public limited company securities
(c) Industrial securities
(d) Shares and debentures

10. The basic regulatory authority for mutual funds and stocks markets lies with the:
(a) Stock Exchanges (b) Government of India
(c) Reserve Bank of India (d) SEBI

SECTION B – (4 × 5 = 20 marks)

Answer any FOUR questions

11. What are financial assets? State the features of financial assets.

12. What is high-powered money? How does it influence money supply?

13. Briefly explain the classifications of Bank in India.

14. Write short note on:

(a) Statutory Liquidity Ratio (SLR)

(b) NABARD

QP Code : 53403 2
15. Distinguish between Capital Market and Money Market on the basis of :
(a) Meaning
(b) Objective
(c) Instruments
(d) Functions and
(e) Relationship

SECTION C – (2 × 10 = 20 marks)

Answer any TWO questions

16. Explain the various constituents of Financial System and gives their respective
functions.

17. Elaborate the role of RBI in Indian Financial System?

18. What do you mean by a Stock Exchange? How does the operation on Stock Exchange
influence the economic life of the country?

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QP Code : 53403 3