MGT411 - Money & Banking FINAL TERM PAPERS

DEAR STUDENT TODAY MY WAS MAY PAPER OF MGT 411

 Total question was 69. 62 mcqs mostely was past papers and 7 was subject out of which 3 was 3 marks and 4 was 5 marks.

 Discuss A well-designed policy framework helps policymakers establish credibility.
Discuss the principles of central bank design.
 Give brief explanation of the following.
a)What is discount rat?
b) How it is controlled?
c)What is impact on economy?
 Central bank has monopoly in issuance of currency”. Discuss
 Monetry policy can be used to stabilized economy.
 Difference b/w Debit Card and Credit card

Best Of Luck DEars

my today paer of mgt 201 arbaz qadeer

Q1:what is the financial lease
Q2:effects of financial and operating lease on ROE
Q3:difference in ask rate and bid rate
Q4:difene operatin lease
Q5:how a company make a decision to divide dividend
Q6:aik sardar & sadar company wala tha jis maun ka profit 2 per share tha wo 7 % chaty thy investor 16% chaty thy or amount moloom karni the imployed

thanks

Q: why there is need for accounting & transparency for C-B ?
Q: why do we care about monetary aggregates ?
Q: what is the effect of an increase in potential input and output on inflation?
Q: briefly explain the reason that why the government get involved in financial system ?

MGT411 Paper 12-08-2010 at 07:00

Total Questions: 53

Multiple Choice Questions : 48 (30% were from Past and Current Papers)



Subjective Questions : 05

Factors on which size of Money Multiplier depends (03)

Why Aggregate Demand Curve slopes down (03)

Lease payments are fixed for the full term of the lease and therefore not subject to inflationary increases. (05)

(a) What does the Slope of Aggregate Demand Curve show and (b) In which situation Aggregate Demand Curve will be Flat and Steep (05)

Supervisors uses ancroym CAMELS to discribe to eveluate the health of the a bank. Discuss CAMELS ?

Why demand curve slope down ?

Quantity theory of money ??

What will be the impact of the supply curve ? (1) Arise in labour (2) current output raise over potential output ?

Names the factor,s that affect the transaction demand of for money ?

Aoa everyone, I attempted my mgt411 ppr today

30-40% mcq were from past pprs.

Subjective Q are as follows:-

Name factors that effect transactions demand for money. 3marks

Why aggregate demand curve slopes downwards. 3marks

Explain how deposit expansion takes place . 5 marks

Describe working of a finance company. 5 marks

Why govt gets involved in financial system. 5 marks

18 to 20 MCQ’s were from past and current papers



Long Questions were



What is monetary policy? How it is controlled? 3



Explain following briefly. 3

What is discount rate?

How it is controlled?

What’s its impact on the economy?



What are the main functions of central bank? 5

When excess deposits take place? How they can be controlled? 5

Explain the components of aggregate demand sensitive and non-sensitive? 5
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Q#1 a )what does the slope of average demand curve show?

a demand curve that is usually downward sloping. The downward slope reflects the relationship between price and quantity demanded: as price decreases, quantity demanded increases. In principle, each consumer has a demand curve for any product that he or she would consider buying, and the consumer's demand curve is equal to the marginal utility (benefit) curve. When the demand curves of all consumers are added up, the result is the market demand curve for that product. If there are no externalities, the market demand curve is also equal to the social utility (benefit) curve.

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b)In which situation aggregate demand curve will be flat and steep.



 Flat if current output is very sensitive to inflation (a change in current inflation causes a large

movement in current output)

 Steep if current output is not very sensitive to inflation



Q#2 how does the deposit expansion take place in system of banks

Deposit Expansion in a System of Banks

 The loan that the First bank made was spent and as the checks cleared, reserves were transferred to

Other banks

 The banks that receive the reserves will seek to lend their excess reserves, and the process

Continues until all of the funds have ended up in required reserves

Q#3what do u understands by liquidity?

Liquidity

 Liquidity is a measure of the ease an asset can be turned into a means of payment, namely money

 An asset is liquid if it can be easily converted into money and illiquid if it is costly to convert.

 Cash is perfectly liquid.

 Stocks and bonds are somewhat less liquid.

 Land is least liquid

Q#4 characteristics of financial instruments?

Characteristics of Financial Instruments

 Standardization

 Standardized agreements are used in order to overcome the potential costs of complexity

 Because of standardization, most of the financial instruments that we encounter on a day-to-day

basis are very homogeneous

 Communicate Information

 Summarize certain essential information about the issuer

 Designed to handle the problem of “asymmetric information”,

 Borrowers have some information that they don’t disclose to lenders

Q#5 monetary policy of reaction curve how it location can be determine

The relationship between current inflation and the real interest rate set by monetary policy makers

What determines its

location?

Drawn so that, when current inflation equals target inflation, policymakers

will set the real interest rate equal to the long run real interest rate



Q#6 what is discount how is it control and what is impact on economy

.

Discount rate Interest rate charged by the

central bank on loans to

commercial banks

how is it control

Set as a premium over the

target federal funds rate

IMPACT

Provides short-term

liquidity to bank in times

of crisis and aids in

controlling the federal

funds rate

Q#7 central bank maintain financial system stability discuss

Financial System Stability

The Central Bank regulates and supervises banks and other financial institutions and payments systems to promote the financial system stability

 Financial system stability is an integral part of every modern central banker’s job.

 The possibility of a severe disruption in the financial markets is a type of systematic risk that central

banks must control. The Central Bank regulates and supervises banks and other financial institutions and payments systems to promote the financial system stability

F i n a n c i a l s y s t em s t a b i l i t y i s

evidenced by and reflected through

(i) an effective regulatory infrastructure,

(ii) effective and well developed financial

markets and

(iii) effective and sound financial institutions
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best of luck dostu [You must be registered and logged in to see this image.]

thanks kamran jee :32: