Punjab University 2008 M.A Economics Financial Institutions and rkets - Question Paper

1. (a) Why and how does financial intermediation take place ? (12)

(b) define the major risks involved in financial intermediations. (13)

OR

discuss the coordination ranging from economic development and development of financial
system. (25)

2. (a) Is it actual that interest rates are a function of time ? provide explanation for your
answer. (12)

(b) define the advantages and disadvantages of administered interest rates. (13)

OR

define the factors that affect the profitability of banks. (25)

3. Write a detailed note on insurance services. (25)

OR

discuss how the money market works. (25)

4. Write short notes on any 2 : (25)
(i) Equilibrium in financial markets.
(ii) Monetary Policy.
(iii) Control of non-bank financial institution.
(iv) Securities markets.

Earning:   Approval pending.