Annamalai University 2007 B.A BUSINESS ECONOMICS - MONEY, NKING AND INTERNATIONAL TRADE - Question Paper

B.A. DEGREE EXAMINATION, 2007
( BUSINESS ECONOMICS )
( 2nd YEAR )
MONEY, BANKING AND INTERNATIONAL TRADE
December ] [ Time : three Hours
Maximum : 100 Marks
part - A (8 × five = 40)
ans any 8 ques..
All ques. carry equal marks.
1. discuss the primary functions of money.
2. Distinguish clearly ranging from demand pull and
cost push inflation.
3. elaborate the functions of a Central Bank ?
4. explain the advantages of Branch Banking.
5. Outline the essentials of comparative cost
approach to international trade.
6. Analyse the factors which determine the terms
of trade of a country.
7. explain the various forms of restriction on
international trade.
8. Analyse the pros and cons of free ?trade?.
9. elaborate the factors that led to short period
modifications in exchange rates ?
10. Write a note on international liquidity issue.
part - B (3 × 20 = 60)
ans any 3 ques..
All ques. carry equal marks.
11. discuss clearly the demand for money
according to the classical volume theory.
12. What is meant by selective credit controls ?
In what ways are they superior to traditional
monetary weapons ?
13. explain the methods of correcting an adverse
balance of payments.
14. Bring out the salient features of regional
economic integration.
15. State the purchasing power parity theory and
discuss why it does not give a theoretically
defensible equilibrium rate of exchange.

Earning:   Approval pending.