Fin Model
Fin Model
Fin Model
A Examination (Regulation 2010-2012) MBA 307F Financial markets and stock exchanges
Section A
Time: 3hrs Max marks: 70M
Answer the following questions. All questions carry equal marks. 5X10=50M
UNIT I 1) Justify the statement The economic development of any country depends upon the existence of a well organized financial system. Or 2) How does SEBI protect the interest of the investors? UNIT II 3) In what way NBFCs are able to bridge the credit gaps which the banks are unable to fulfill? Or 4) Explain the scope and importance of financial services in India. UNIT III 5) What are the various methods of floating securities in new issue market? Or 6) Describe the importance of guilt-edged securities market in Indian securities market. UNIT IV 10M 10M 10M 10M 10M 10M
7) Define a money market. List down the money market instruments and state their features in brief. Or 8) Write a detailed note on a) Commercial bill market b) Treasury bill market UNIT V 9) Mutual funds provide stability to share prices, safety to investors and resources to prospective entrepreneurs. Discuss. Or 10) Explain the important phases of insurance business in India 10M 10M 5M 5M 10M
Section B
1X20=20M
Yet another monsoon season was approaching; but Joshuna Begum (Begum) unlike her neighbours was not worried about her house getting damaged during the monsoon. Her house now had a tin roof, mud walls and wooden windows, a luxury in rural Bangladesh. Earlier, Begum's house had a straw roof and bamboo walls, which used to get damaged in the monsoon season, forcing the whole family to live in the kitchen. She got her hut repaired with a loan from the Bangladesh Grameen Bank (Grameen Bank). Begum wasn't the only one; there were thousands of people in rural Bangladesh who had improved their living conditions with the help of the microfinance programs of Grameen Bank, a pioneer in micro finance. Grameen Bank helped thousands of poor Bangladeshi women to improve their lives by extending loans to them to start their own enterprises. By 2003, it was reported that between 33-48% of Grameen Bank borrowers had moved above the poverty line. By 2003, with 1,170 branches across Bangladesh, Grameen Bank was seen as a role model for microfinance all over the world. The Grameen Bank model was replicated across the world -- not only in developing countries like India, Pakistan, and
Vietnam, but even in developed countries such as Australia and the USA, where similar schemes were set up to improve the lives of the urban poor . However, the Grameen Bank also attracted criticism from the media and economists all over the world. Analysts pointed out that there was no proper monitoring of how the loans were utilized; it was reported that the loans availed of by women were used largely for consumption rather than for investment purposes. Analysts also pointed out that the accounting methods used by Grameen Bank were not in accordance with industry standards, and that the bank did not provide full details about its financial position and loan repayments position.
Answer the following Questions: 1) Do you think monitoring by micro finance institutions is needed? If so, how will it benefit MFIs and rural poor? 2) How can micro finance be useful for a developing country like India? 3) What are the possible causes for criticism on Grameen bank? 4) Why most of the banks and financial institutions are reluctant to include microfinance schemes in their operations. ?