LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034 B.A., DEGREE EXAMINATION – ECONOMICS FIFTH SEMESTER – SUPPLEMENTARY – JUNE 2012 EC 5506/EC 5502 – MONEY AND BANKING Date : 28-06-2012 Time : 2:00 - 5:00 Dept. No. Max. : 100 Marks PART – A Answer any FIVE questions in about 75 words each: (5×4=20) 1. What is value of money? 2. Write a short note on ‘neutrality of money’. 3. Discuss the chain of causation. 4. Distinguish between central and commercial banks. 5. What is money market? 6. What is liquidity trap? 7. State the various types of securities. PART – B Answer any FOUR questions in about 300 words each: (4×10=40) 8. Bring out the different types of money. 9. Explain the steps involved in the construction of index numbers 10. Discuss the superiority of cash balance approach over transaction approach. 11. Analyse the functions of RBI. 12. Explain the origin of commercial banking in India. 13. Discuss the weaknesses of Indian capital market. 14. Explain the various instruments of qualitative credit control. PART – C Answer any TWO questions in about 900 words each: 15. Discuss the functions of money. 16. Critically analyse the classical quantity theory of money. 17. Critically analyse the working of RBI. 18. Bring out the SEBI’s guidelines for primary and secondary market. $$$$$$$ (2×20=40)