M.B.A. DEGREE EXAMINATION, NOVEMBER/DECEMBER 2017.
Third Semester
FINANCIAL MARKETS AND INSTITUTIONS
2 90139-A
Time 3 Hours Max. Marks 70
SECTION — A
Answer the following questions. 2 10 Marks)
1. Monetary policy.
2. Non-banking institutions.
3. IRDA.
4. Call money market.
5. Credit rating.
SECTION — B
Answer the following questions. 10 50 Marks)
6. Explain the elements of financial system and economic development.
Or
Explain the functions and role of RBI.
7. Bring out the banking structure in India.
Or
Discuss the growth of mutual funds in India.
8. Explain the classifications of capital market.
Or
What are the various securities in money market?

9. What is hire purchase? Explain the advantages and disadvantages of it.
Or
Explain in detail the venture capital financing.
10. What are fee based services? Discuss.
Or
Bring out the challenges faced by investment bankers.
SECTION — C
Compulsory. 10 10 Marks)
11. Case study
Saqib Ltd. is a large credit worthy company operating in the Kashmir Valley. It is
an export oriented unit, dealing in exclusive embroidered shawls. The floods in the
valley have created many problems for the company. Many craftsmen and workers
have been dislocated and raw material has been destroyed. The firm is therefore,
unable to get an uninterrupted supply or raw material, and the duration of the
production cycle has also increased. To add to the problems of the organization, the
suppliers of raw material who were earlier selling on credit are asking the
company, for advance payment or cash payment on delivery. The company is facing
a liquidity crisis, the CEO of the company feels that taking a bank loan is the only
option with the company to meet its short term shortage of cash. As a finance
manager of the company name and explain the alternative to bank borrowing that
the company can use to resolve the crisis.
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