Total No. of Questions : 5] SEAT No.

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P3818 [Total No. of Pages : 3

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F.Y. M.B.A. (Finance)

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205 FIN - SC-FIN - 01 : FINANCIAL MARKETS & BANKING

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OPERATIONS

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(2019 Revised Pattern) (Semester - II) (Theory)
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Time : 2½ Hours] 7/2 [Max. Marks : 50
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Instructions to the candidates:

1) Draw neat labelled diagram wherever necessary.
2) Figures to the right indicate full marks.
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3) Attempt all the questions.
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Q1)Solve any Five out of Eight.

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a) _________ is an alpha numeric code that uniquely identifies bank-branch

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participating in the NEFT system. [2]
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i) IFSC ii) STP
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iii) SFMS iv) RTGS

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b) In banking ATM stands for _________ . [2]

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i) Automated Tallying Machine

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ii) Automated Teller Machine
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iii) Automated Totalling Machine
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iv) Automated Transaction of Money
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c) The relationship between a banker and its customer is basically______ .

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i) A debtor and a creditor

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ii) A trustee and the beneficiary

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iii) A principal and agent

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iv) None of these

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d) Which of the following are the instruments of money market? [2]

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i) Call money ii) Certificate of deposits

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iii) Treasury bills iv) All of the above

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 e) Which of the following is the function of financial market? [2]

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i) Mobilization of savings

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ii) Price fixation

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iii) Provide liquidity to financial assets

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iv) All of the above

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Non - Banking financial Companies are the financial intermediaries engaged
primarily in the business of ________ [2]
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i) Lending loans and advances

ii) Leasing
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iii) Hire purchasing
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iv) All of the above
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g) What does I stands for in IMPS? [2]
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i) Instant ii) Inter
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iii) Interface iv) Immediate
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h) IMPS is managed by? [2]

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i) RBI ii) NPCI

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iii) SBI and NPCI iv) RBI and NPCI

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Q2) Solve any TWO out of THREE.

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a) Explain in detail Commodity market with example. [5]

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b) Describe principles of Sound Bank Lending. [5]

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c) Explain in detail MICR. [5]

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Q3) Solve any One:

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a) Elaborate Wholesale and Retail Banking [10]

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b) Elaborate the contribution of Banks to Indian economy. [10]

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Q4) Solve any One:

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a) Ramesh buys a financial asset from the RBI. This financial asset is an

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instrument of short term borrowing. He has bought it because he doesn’t

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want to take risk and wants an assured return. This instrument is a

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promissory note. It is highly liquid. This instrument is also known as

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Zero Coupon Bond. On this instrument is written T- 91. [10]

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i) Which financial asset is indicated in the above case?

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ii) On whose behalf does the RBI issue this instrument?
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iii) Why is this instrument called as the Zero Coupon Bond?
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iv) What does T-91 denote here?

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v) What is the minimum amount for which this instrument is available?

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b) Identify the type of financial market in the following cases with justification:
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i) The value of securities issued by a company is low. It has not set
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up a huge financial outlay. Mr. Manuj has purchased 100 units of
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shares with the value of Rs. 8 each. Though he has small savings
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yet he is able to invest money in this financial market.

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ii) A financial market deals only in short term securities. The securities
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in the market may even be issued for a single day.

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iii) A financial market deals in medium term and long term securities
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such as equity shares and debentures.

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iv) The participants in this financial market are institutions like banks,
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corporations, large sized companies and members of the public.

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v) The securities in this financial market yield low rate of return.
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Q5) Solve any One:

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a) “The role of technology is essential in banking services”, justify the

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statement. [10]
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b) Critically evaluate the Role of Financial System in Economic

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Development. [10]
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