Section - I

1. Candidate should attempt any SEVEN parts of the following questions. (Answer to each part should be approximately of 50 words):-

Marks: 5 × 7 = 35

(a) Explain the meaning of "National Product at Market Prices" and "National Product at Factor Costs". Illustrate the relationship between the two types of valuations.

(Comment for solution.)

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(b) Briefly discuss "Primary and Secondary Markets".

(Comment for solution.)

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(c) Meaning of "Exchange Rate Risk".

(Comment for solution.)

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(d) Briefly discuss the merits of "Liquidity Adjustment Facility"(LAF).

(Comment for solution.)

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(e) Distinguish between "Hot Money" and "Capital Flight".

(Comment for solution.)

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(f) Explain "Futures Contract". What are the main types of Futures?

(Comment for solution.)

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(g) State the stages of Economic Growth in Rostow's model.

(Comment for solution.)

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(h) Explain the term "Capital Deepening". Under What condition(s) Capital deepening takes place?

(Comment for solution.)

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(i) When Financial Markets are said to be perfect?

(Comment for solution.)

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Section - II

Candidates should attempt any SEVEN of the following questions. (Answer to each question should be approximately of 150 words):

Marks: 15 × 7 = 105

2. state briefly the key propositions of Monetarist School of Macro Economics.

(Comment for solution.)

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3. Elucidate the concept of "Balanced Growth" Will its achievement be easier if the supply of capital is larger than if it is smaller?

(Comment for solution.)

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4. Explain the concept "Capital Market Efficiency" What are the different forms of the Capital Market Efficiency?

(Comment for solution.)

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5. "Despite merit, Heckscher-Ohlin theory has some shortcomings." Discuss.

(Comment for solution.)

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6. Briefly explain "Net Barter Terms of Trade". What are the important limitations of the theory?

(Comment for solution.)

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7. "The Balance of Payment always balances." Comment on the statement.

(Comment for solution.)

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8. "Growth of GNP is an unfailing Index of a country's economic progress." Elucidate the idea.

(Comment for solution.)

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9. The "Physical Quality of Life Index" is an instrument to measure development. Elaborate the statement.

(Comment for solution.)

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10. Explain briefly the objectives of IMF.

(Comment for solution.)

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Section - III

Attempt any TWO of the following questions. (Answer to each question should be approximately of 500 words):

Marks: 30 × 2 = 60

11. Examine the circumstances that gave rise to the mercantilism and those that brought about its decay. Is the world going back to mercantilism in a new form ?

(Comment for solution.)

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12. "Domar assigned a key role to Investment in the process of Economic Growth" Keeping the statement in mind explain Domar's Economic Growth model.

(Comment for solution.)

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13. What is "Reciprocal Demand"? Critically evaluate Reciprocal Demand Theory.

(Comment for solution.)

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