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AEREN
FOUNDATION’S Maharashtra Govt. Reg.
No.: F-11724
Total Marks: 80
SUBJECT :MARKETING FINANCE MANAGEMENT
N.B. : All questions are compulsory
Question.1.
Define the different types of scheme’s floated by mutual fund’s briefly.
Answer: The Mutual Funds usually invest their funds in equities, bonds,
debentures, call money etc., depending on the objectives and terms of scheme
floated by MF. Now a days there are MF which even invest in gold or other asset
classes.
What is NAV? Define NAV: NAV means Net Asset
Value. The investments made by a Mutual Fund are marked to market on daily
basis. In other words, we can say that current market value of such investments
is calculated on daily basis. NAV is arrived at after deducting all liabilities
(except unit capital) of the fund from the realisable value of all assets and
dividing by number of units outstanding. Therefore, NAV on a particular day
Question.2.
Analyse the trend in different call rates in India.
Answer: The Reserve Bank of India left its benchmark repo rate at 6.75 percent
during the meeting held on February 2nd, as expected. While awaiting further
data on inflation, policymakers said they would stay accommodative but look
forward to the government's budget statement at the end of February. The
central bank also decided to keep the cash reserve at 4.0 percent, to provide
liquidity under overnight repos at 0.25 percent and to maintain daily variable
rate repos and reverse repos to smooth liquidity. Interest Rate in India
averaged 6.71
Question.3.
Comment on the following statements.
Question.A)
Public Deposits are short term substitute for Money.
Answer: Public Deposits: The deposits that are raised by enterprises
directly from the public are called as public deposits. The Rates of interest
obtained on public deposits are comparatively higher than that obtained from
the bank deposits. A person can fill up a prescribed form of the organization
and deposit the money on to it. The organization would in return issue an
acknowledgement in the form of a deposit receipt. It is only Public deposits
take care of both medium and short-term financial requirements of a business.
These deposits
Question.b)
Public Deposits are addition to savings.
Answer: The insurance coverage of public unit accounts depends upon the type of
deposit and the location of the insured depository institution. All time and
savings deposits owned by a public unit and held by the public unit's official
custodian in an insured depository institution within the State in which the
public unit is located are added together and insured up to $250,000.
Separately, all demand deposits owned by a public unit and held by the public
unit's official custodian in an insured depository institution within the State
in which the public unit is located are added together and insured up to
$250,000. For the purpose of these rules,
Question.c)
Direct acceptance of Deposits by companies pose threat to the working of credit
policy in theeconomy.
Answer: The
Lessors
1. Specialised Leasing Companies: There are
approximately 400 big companies with an organisational focus on leasing, and
therefore, called as leasing companies.
2. Banks and Bank-subsidiaries: In February
1994, the RBI allowed banks to directly enter leasing. Till then, only bank
subsidiaries were allowed to engage in leasing operations, which was regarded
by the RBI as a non-banking activity.
3. Specialised Financial Institutions: A
number of
Question.d)
The entries in the public deposit raises the debt/equity ratio of the
companies.
Answer: An official custodian is an officer, employee, or agent of a public unit
having official custody of public funds and lawfully depositing the funds in an
insured institution. In order to qualify as an official custodian, a person
must have plenary authority - including control - over the funds. Control of
public funds includes possession as well as the authority to establish accounts
in insured depository institutions and to make deposits, withdrawals and
disbursements.
Deposit insurance coverage cannot be
increased by dividing
Question.4.
Write a brief note on discounting service and its importance in money market.
Answer: As money became a commodity, the money market became a component of the
financial markets for assets involved in short-term borrowing, lending, buying
and selling with original maturities of one year or less. Trading in money
markets is done over the counter and is wholesale. There are several money market instruments,
including treasury bills, commercial paper, bankers' acceptances, deposits,
certificates of deposit, bills of exchange, repurchase agreements, federal
funds, and short-lived mortgage-, and asset-backed securities. The instruments
bear differing maturities, currencies, credit risks, and structure and thus may
be used to distribute exposure. Money
markets, which provide liquidity for the global
Question.5.
The good absorptive capacity to government securities market has increased due
to thedisproportionate support by the RBI. Justify.
Answer: In response to the macroeconomic crisis, a programme of stabilisation and
structural adjustment was initiated in July 1991, with wide ranging reform
measures encompassing the areas of trade, exchange rate management, industry,
public finance and the financial sector. Fiscal correction, exchange rate
adjustment, monetary targets and inflation controls constituted the immediate
measures for macroeconomic stability.
These measures were supported by structural
reforms in the form of industrial deregulation, liberalisation of foreign
direct investment, trade liberalisation, overhauling of public enterprises and
financial sector reforms. Apart from aiming at restoring the economic stability
on both domestic and external fronts, the economic reform programme
Question.6.
Give a brief note on different types of options and highlight the various
services provided bythem.
Answer: In finance, an option is a contract which gives the buyer (the owner or
holder of the option) the right, but not the obligation, to buy or sell an
underlying asset or instrument at a specified strike price on or before a
specified date, depending on the form of the option. The strike price may be
set by reference to the spot price (market price) of the underlying security or
commodity on the day an option is taken out, or it may be fixed at a discount
or at a premium. The seller has the corresponding obligation to fulfill the
transaction – to sell or buy – if the buyer (owner) "exercises" the
option. An option that conveys to the owner the
Question.7.
What are the drawbacks of foreign capital inflow.
Answer: Capital inflows from Multi National Companies (MNCs) primarily refer to
inward investment from MNC into European economies.
The effect of these capital inflows involves
increased levels of Investment. MNCs inject investment into the economy. This
causes several benefits for the economy.
1. Increased Aggregate Demand: As a component of AD, higher Investment will
boost AD, causing improved economic growth. This should lead to
Question.8.
What is the relationship between short term and long term interest rates.
Answer: You can think of interest as the price for renting money, whether you are
borrowing it or loaning it. When you put your money into a savings account, the
bank pays you interest for the use of your money. When you take out a mortgage
to buy a house, you pay interest to the mortgage company to use its money. The
amount of interest charged or earned depends in part on whether the loan is
long-term or short-term.
Term: When it comes to interest rates, short-term and long-term are ambiguous
phrases. Different financial experts and organizations define the terms
differently. For example, the Securities Industry and Financial Markets
Association considers bonds with
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students get fully solved assignments
Send
your semester & Specialization name to our mail id :
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or
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us at : 08263069601
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