B.B.A. (Semester III) (CBCS) Examination Mar/Apr-2018
BUSINESS ECONOMICS II (Macro)
Time: 2½ Hours
Max. Marks: 70
Instructions: All questions are compulsory. Figures to the right indicate full marks. Neat diagrams should be drawn wherever necessary.
Q.1

Choose correct alternative from the given alternatives:
07
Debit card money.
Currency
Legal tender
Credit
All of these
Bank is not a profit making institution.
Reserve Bank of India
Co-operative
Private
None of these
Goods and Service Tax is a tax.
Global
Direct
Indirect
Local
A recession phase of trade cycle is characterized by
Fall in profit
Fall in price
Fall in demand
All of the above
is a macroeconomic objective.
Maximum profit
Maximum sale
Full employment
Maximum satisfaction
Services transactions is a part of account of Balance of payment.
Current
Capital
Settlement
All of these
During inflation gains more.
Businessmen
Traders
Merchants
All of these
Q.1

State the following statements true or false.
07
Repo rate is a short term lending rate of Central Bank.
Direct Tax reduces purchasing power.
Current account deposits are not useful for credit creation.
Monetary policy is employed by Finance Minister.
Demand pull inflation is because of rise in import prices.
Balance of payment is for local trade.
Money is a medium of barter exchange.
Q.2
Write short notes (Any two)
14
Balance of payment and Balance of Trade
Sources of public expenditure
Types of deposits.
Page 2 of 2
SLR-CU-15
Q.3
Write short notes (Any two)
14
Macro- economic objectives.
Business cycle
Functions of money
Q.4
Describe process of multiple credit creation. Write its limitations.
14
OR
Define indirect tax. Explain its merits and demerits.
Q.5
Discuss the causes of inflation and explain measures to control it.
14
OR
Explain the features of foreign trade. Describe the cause of disequilibrium in balance of payment.