K.L.E.

SOCIETY’S I (C) 17
LINGARAJ COLLEGE, BELAGAVI
BELAGAVI
(AUTONOMOUS)
M.COM. Degree Examinations, January 2017
First Semester
MCOM107 – FINANCIAL MARKETS AND INSTITUTIONS
Duration: 3 Hours Max. Marks: 70

• Answers to all the questions should be written in the same answer book.

SECTION - A
Answer all of the following questions.

10x2=20 Marks

1. What do you mean by financial intermediaries?

2. State the relevance of financial system in Economic Development.
3. Distinguish between marketable and non-marketable financial instrument.
4. What do you mean by Private Placement?
5. Give the meaning of NBFCs.
6. What is a fund of funds?
7. State why derivatives are used.
8. What are SWAPS?
9. Mention the structure of insurance industry in India.
10. What are development banks?

SECTION - B
Answer any Four of the following.

4x5=20 Marks

11. Bring about the role of financial instruments in financial syatem.

12. What are commercial Papers? Who issues them and why?
13. Explain the functions of Money Market.
14. What are exchange Markets? State the role of foreign exchange Market.
15. Explain in detail the various types of derivations.
16. Elucidate the objectives of development financial institutions (DFIs)

1
 SECTION - C

Answer any Two of the following questions.

2x10=20 Marks

17. ‘Financial Markets are integral part of efficient financial System’. Explain.
18. Discuss the structure and types of Mutual funds in India.
19. Explain the features of derivatives trading.
20. Discuss the Working of LIC and GIC.

SECTION - D

21. Case Study (Compulsory).

1x10=10 Marks

Calculate the many Shri Banwari Lal & sons, New Delhi will receive or pay for its
following four foreign currency transactions;

(I) The firm receives dividend amounting to Euro 1,12,000 from its French
Associate Company.
(II) The firm pays interest amounting to 2,00,000 Japanese Yens for its barrowing
from a Japanese Bank.
(III) The firm expected goods to USA and has just received US $ 3,00,000.
(IV) The firm has imported goods from signature amounting to signature Dollars
(SGD) 4,00,000.
Given
1$ = Rs. 40.00/40.05
1Euro = Rs 56.00/56.04
1 SGD = Rs 24.98/25.00
100 Yens = Rs 44.00/44.10

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