School of Distance Learning ADBFM (New Course)

advertisement
Date: 21/12/2006
Time: 11 am to 2
pm
School of Distance Learning
ADBFM
(New Course)
Semester I
Economic Environment for Banking
Marks: 100
--
Instruction:
1) Answer all questions as directed.
2) Figures in brackets in the margin indicate full marks.
Section I
Basic Concepts:
Answer any Eight questions
(8 x 5 = 40 Marks)
1. Discuss some of the implications of WTO which pose a challenge for India.
2. Differentiate between Consumer Price Index (CPI) & Wholesale Price Index (WPI).
3. Describe the purposes for which people hold money.
4. State & explain the components of M3.
5. State & explain Repo and Reverse Repo as tools of Monetary Policy.
6. Explain the impact of rising Fiscal Deficit on the Economy.
7. Explain the reason for increasing interest in implementing the Principles of Corporate
Governance in the Indian Companies in the recent years.
8. Differentiate between Balance of Trade (BoT) & Balance of Payment (BoP).
9. Describe the unfinished areas of Financial Sector Reforms of India.
10. State and explain the two approximate sources of Thailand's Crisis in the late
nineties.
11. Describe the benefits of a Joint Venture.
12. Describe the importance of Development Financial Institutions (DFI) for economic
development of any country.
Section II
Conceptual Understanding and Analytical Ability:
Answer any Three of the following questions
(3x15=45 Marks)
1. Discuss the advantages and disadvantages of the recent transformation of the leading
Development Finance Institutions (DFI) into banks, especially in the light of the
experiences emanating from Asia and South-East Asian countries.
2. a) Define the term Fiscal Deficit. Describe the three major drawbacks pointed out by
Raja J Chelliah, the eminent Fiscal Expert, in any popular definition of Fiscal Deficit.
b) Describe the three different Deficit concepts and their relevance in
overcoming the limitation of Fiscal Deficit.
3. a) State and explain the major components of Balance of Payment (BoP)of
a country.
b) What do you understand by Balance of Payment (BoP) deficit or surplus?
4. What is meant by convertibility of currency? Is India ready for 'Full Convertibility of
Rupee'?
5. What is SWOT Analysis? State & explain in brief the strengths & weaknesses of the
Indian Economy.
6. What do you understand by Demographic Environment? What is its relevance in the
study of Business Environment?
Section III
Problems and Situational Analysis
(15 Marks)
Answer any One of the following questions.
1. a). What are the various methods for measuring Gross Domestic Product
(GDP)?
b). The following are the values of the various components of the
National Income of India:
Sr.
No.
1
Components of National Income
Rs (Crores)
Value of all final consumption and capital
6,000
Qoods
2.
Depreciation Allowances
750
3.
Value of Imports
450
4.
Subsidies
225
5
Value of Exports
375
6
Commodity Taxation
450
the above
values,
you are required to calculate
7 From Net
Income
from Abroad
50
I. GDP at Market Prices il.
GNP at Market Prices iil.
NNP at Market Prices iv.
NNP at Factor Cost
2. The following are the cases of a few companies which had faced many problems
because of certain weaknesses and threats from the environment. These companies
have certain inherent strengths and favorable environment also which may enable
them to overcome the problems, survive and grow:
a. Peerless General Finance & Investment Company had faced many problems in the
past such as instability in the top management, unfavorable public image,
unfavorable Government relations, liquidity constraint, etc. But it has a huge amount
of capital of Rs 800 crores invested in fixed assets which the company proposes to
use for funding its diversification plans.
b. LML has collected nearly Rs 126 crore as advance for booking of scooters. But
within five years, its cash position deteriorated owing to a sudden and unforeseen
cancellation of booking and withdrawal of deposit resulting in a huge interest
burden. These had continually affected its profitability. On the other hand, another
new entrant in the highly competitive scooter market namely Gujarat Narmada Auto
Limited (GNAL), entered the industry with the financial backing of Gujarat Valley
Narmada Fertilizer Company (GNFC). GNAL had the Government of Gujarat to
support it during its initial difficult years.
Questions:
I. Please analyze the two cases separately; identify their strengths, weaknesses
opportunities and threats (SWOT).
il. Please also comment on the prospects of their survival and growth.
xxxxx
Download