ECO-09 Important Questions

ECO-09 Important Questions for upcoming exams

ECO-09 Important Questions
1. Explain the role of commercial banks in the economic development of a country.
2. Distinguish between money market and capital market. Discuss the structure and characteristics of Indian money market.
3. Discuss Keynes’ theory of money and prices. Is it the correct explanation of changes in price level ?
4. Explain the concept of inflation. Examine its effects. Why should inflation be controlled ? Explain the various types of inflation. State the factors responsible for inflation.

5. Explain the various functions of Reserve Bank of India. Describe the methods of credit control adopted by the Reserve Bank of India.
6. What is Non-Bank Financial Intermediation ? Discuss the role of Non-Bank Financial Intermediaries.
7. Explain the objectives and functions of World Bank. Critically evaluate the contribution of World Bank towards the economic development of the underdeveloped countries.
8. Discuss the various motives for holding money. Is demand for money a function of income or rate of interest or both ? Explain.
9. Distinguish between Branch Banking and Unit Banking.
10. Examine the role of NABARD in providing agricultural finance in India.

11. What is a Development Bank ? Discuss the origin and functions of Development Banks.
12. What is credit creation ? How do commercial banks create credit ? State the limitations to this process of credit creation.
13. What is Central Bank ? Discuss the traditional as well as promotional functions of Central Bank.
14. What are foreign exchange markets ? Distinguish between the Spot and Forward foreign exchange markets.
15. Write notes on:
a. NABARD
b. Special Drawing Rights (SDRs)
c. State Financial Corporations (SFCs)
d. Foreign Exchange Market
e. Inflation
f. Branch and Unit Banking System
g. Money market and Capital market
h. Central Bank and Commercial Bank