IUANAGE}IENT PROGRAMME
Term-End Examination
December, 2A06
MS41@ : WORKINGCAPITAL
MANAGEMENT.
-il .
Tine: 3 hours MaximumMarkg: 700
(IlVeightage
7@/o)
" ffole t Attempt any fioe questions. All questions carry
equal marks.
1. "Every financial decision has an impact on the risk*efum
profile of a firm. Therefore, the financing decision of
worhng capital of a firm also determines the riskreturn
profile of a firm with regard to its working capital." Do you
l
e with the_ statement ? Support your answer with
necessary examlle(s). Also, discussvarious approaches to
financing 'of worhng capital and how each approach
affects a firm's overall risk and profitability. 20
MS-41o P.T.O.
2. State with reasons whether the following statements are
true : 20
(i) The underlying objective behind working capital
decisions is to ensure sound liquidity position of a
firh so that it can meet its businesscommitments on
time and at the minimum cost.
(iil Both, the Baumol Model and the Miller-On Model,
determine the optimum cash holding by firms under-
different set of assumptions.
(iii) ABC Analysis is a better indicator of the quality of
inventory than Inventory Turnover Ratio.
(iv) There is no difference between a commercial paper
and a commercial bill of exchange.
3. (a) What do you understand PrudentialNorms for
by
ExpgsureUmits ? Why have they been prescribed
by ReserveBank of India ?
(b) What do you understand Consortium
by Lending ?
How doesit differ from syndication loans ?
of 20
4. (a) Discusshow.the Baumol Model can reduce the cost
of managing working capital of a firm.
MS41@
(b) A company - Sneh Manufacturing Pvt. Ltd. -
has finalised its annual accounts. Profit and Loss
Account and Balance Sheet for the year 2005 - 06
are glven oelow :
'
Profit and Loss Account
For the year ending on 31-03-2006
Debit Credit
Particulars Particulars (Rs.)
(Rs.)
Opening Stock : Sales 1,00,000
Raw Material 10,000 Closing Stock r
Work-in-Progress 30,000 Raw Material 11,000
Finished Goods 5,000 Work-in-Progress 30,500
Purchases 35,000 Finished Goods 8,500
wages ancl
Manufacturing Expenses 15,000
Gross Profit c/d 55,000
1,50,000 1,50,000
Administrative Expenses 15,000 Gross Profit b/d 55,000
Selling and Distributive
Expenses 10,000
Net. Profit 30,000
55,000 55,000
MS41@ P.T.O.
Balance Sheet
as on 31-3-2006
Uabilities Rs. . Assets Rs.
Share Capital 1,60,000 Fixed Assets 1,00,000
Profit and Loss Account 30,000 Closing Stock :
Creditors 10,000 Raw Material 11,000
Work-in-Progress 30,500
Finished Goods 8,500
Debtors 30,000
Cash and Bank 20,000
2,00;000 2,00,000
Opening Debtors and Opening Creditors u)ere
Rs. 6,500 and Rs. 5,000 respectively. You are
required to determine the Operating Cycle of the
Company. 20
5. The details of XYZ Company's producl costs, stock and
plans, liabilities are as follows :
Activity l-evel
Produce 10,000 units of Product lX' in a period of
four weeks. There is no opening stock for the
product.
MS-41o
* Cost Structure of Product
Raw material = Rs. 75 per unit
latrour costs = Rs. 60 per unit
Variable Overheads= Rs. 25 per unit
Fixed Overheads= Rs. 15,00,000 per 4 weekly
Period
'
Selling price = Rs. 500 per unit
t lpvels of Stocks Planned
(i) Raw materials : 2 weeks consump.tion
(i0 Work-in-Process : 4 weeks
(ii| Finished Goods : 2 weeks supply
(iv) Debtors settle the bills six weeks after supply
* Current Liabilities Structure
(i0 Raw materials paid for ot ihe end of the
month in which delivery is made.
t (i\4 Expense creditors allow an'aveftlge of six weeks
credit.
You are required to estimate . the level of working
and 4 weeks in a month for computation purposes. 20
Ms41@ P.T.O.
6. In May 2006, Mr, Sushil Vats was appointed",as the new
Chief Manager-Financeof M,/s Deshmukh Industries Prirate
Umited (DIPL). He was responsiblefor looking after the
Working Capital Management of the Company. He first
went through the Annual Financial Statements of the
Company and found that the Company did not have
. sufficient amount of worhng capital to meet 2006 - 07
sales targets. Thercfore, he immediately constituted a team
of two fingnce managers - Mr. V.K. Sood and Mr. Rishi
Wadhwa to work out necessaryamount of working capital
that is to be needed to meet the targets of the year
2006 - 07 and also, suggest the ways to find better
managementof the Working Capitalat DIPL.
DIPL was set up in July 1986 and since then it is
mainly in the businessof manufacturing hardware, cutlery,
steel fumiture and office steel equipment. They are not in
the retail business. Ttieir major clients are Government
offices and corporates who buy these on credit basis.
Due to the stiff competition, there is always a pressure
on the Company to sell on credit basis and in fact, a
pressure of extending the usual credit period. This has
forced the Company to being arrange more funds for
wdrking capital. Further, due to hard pressed for profits
in the last 5 years, the managementof the Company has
decided to diversify its operation and they have entered
MS41o
into bus-building actMty from March 2006 at Nazafgarh,
Delhi. Atl these are making the job of Mr. Vats a
challengingjob - he has to optimize the use of working
capital and provide necessarysupport for the same.
Mr. Sood and Mr. Wadhwa have collected the following
information about the sales and cost.
Rs. in lokhs
(i) Sales Targets for the year 2006 - 0T Rs.12,000
(i0 Existing Level of Sales Rs.9,000
for which the following cost sheet is available
(iit Cost Statement :
(a) Raw Material 50'0070
(b) Direct Wages 5'0070
(c) Direct Expenses 2.:500/o
(d) Variable Factory Overheads l'50o/o
(e) Depreciation - Fixed 0'5Ao/o
0 Fixed Factory Overheads
'other than Depreciation
1'007o
(g) Administrative Expenses- Fixed 2'OOo/o
(h) Marketing and Selling Expenses
(40o/oare hxedl
5'00%o
Ms41@ P.T.O.
They have also collectedthe following information
that, they think, wouldbe very usefulin the estimation
of working capitalrequirement the Company:
of
(i) Stock of Material 2 month's dverage
tii) Work-in-process 1 month'saverage
2
-(a) Completed 100V0with respect to Material
(bl Completed 750lo with respect to Direct
Fxpenses
(c) Completed 500/6with respect to all other
relevant o(Penses
1
iiit) Finished Goods Inventory li month's average
(iv) Average Collection
2'months
period of Debtors
(v) Average Payable period 1
to Creditors 2i months
z'
(vi) All expenses are paid with a lag of one month
excgpt 507o of Fixed Marketing and Selling
Distribution, which are paid in advance for a
quarler.
Mr. Wadhwa has instructed them to ensure 25o/oof
Current Liabilities should be in the form'of Cash in
hand and at Bank while estimating the amount of
working capital as it is very essential to ensure
sufficient liquidity in the Company.
Required :
Determine the required amount of working capital
that is to be financed from sources other than the
present current tiabilities.
MS-41@
7. Explain in brief the following and bring out the differences
between them : 20
(i) Reorder Level and Safety Stock Level
(ii) Bank Credit and Trade Credit - as source of
financing working capital requirement
(iii) Bank Rate and Prime Lending Rate
M Current Ratio and Quick Ratio - measures of
liquidity.of a firm
8. Write short notes on any four of the following : 20
r (i) Liquidip vs. Profitability in Working Capital
. (ii) VED Analysis
(iit Treasury Bills
. (iv) Multivariate Statistical Models to determine the credit
rating of a customer
(v). Cash Budget
(vi) Simulation - as modelling tool for various financial
decisions
MS41 9 1,000
t
IT{ANAGEMENTPROGRAMME
Term-End Examination
Decembeu 2OO6
MS-42@: CAPITAL
INVESTMENTAND
FINANCINGDECISIONS
Time:3 hours MaxlmumMarks: 700
(Weightage7@/o)
Nofe ; Attempt'any fioe questions. questiions
All carry
equal marks. Present Value Tables witt be
supplted,if askedt'or.
1. "Forward is a plain vanilta instrument that gives birth to
derivativesthrough financial engineering." In the light of
this statement explain the meaning and significance of
derivatives. Explain any two derivative products and show
the value addition in them.
2. What do you understand by re-organisation of capital ?
How does it differ from financial reconstruction ? Discuss
the ways in which capital re-organisationmay take place.
MS42 @ P.T.O;
3. Write explanatory notes on :
(a) Soft Loans
(b) Venture Capital
(c) Conversion Option
(d) Euro-CurrencyMarket
(e) Mortgaged B'ackedSecurities
4. Precision Instruments is considering two mutually exclusive
projects X and Y. The following details arc made arnilable
to you :
Rs. in lokhs
Project X Project Y
Project Cost 700 700
Cash flows :
Year 1 100 500
Year 2 200 400
Year 3 300 200
Year 4 450 100
Year 5 600 100
Total 1650 1300
Assume no residual value at the end of the fifth year. The
firm's cost of capital is L}o/o. You are required to
calculate :
(i) Net Present Value, using 10% as discount rate,
(ii) Internal Rate of Return, and
(iii) Profitability Index in iespect of each project.
Ms426
5. Ashoka Ltd. is expanding its capacity. In the corning year,
the company will either purchase or lease eqtripment which
it plans to use for 4 years and then replace it.with a new
one. Its current tax bracket is 507o. The other data are as
'
fotlows ,
Purchase :
(i) The purchaseprice of"the equipment is Rs. 40 lakhs.
(i0 Expected salvagevalue after 4 years is Rs. 10 lakhs.
(iii) The equipment is subject to the straight line method
of depreciation.
M Funds to finance the equipment can be obtained at
160/oper annum. ,
(v) The loan is to be repaid in four equal annual
instatmentsdue at the end of each year.
(vi) The equipment will increase the annual revenue by
Rs. 30 lakhs and increase annual cash operating
costs by Rs. 20 takhs.
Leasing :
(i) Tha annual lease is Rs. 10 lakhs.
(ii) The lease rent is payable at the end of each year for
4 years.
(iii)The equipment will increaseannual revenue by Rs. 30
lakhs and increase annual non-depreciation operating
coststby Rs. 19 tak*rsas the lessor will pay Rs. 1 lakh
for the maintenance costs associated with the
equipment.
'are
You required to determine whether the company
should purchase or lease the equipment.
MS42 @ Pf.o,
6. (a) What do you understandby Project Life Cycle ? With
the help of a diagrarn, show time distribution of
project effort.
(b) Write an explanatory note on Cybernetic control.
7. Explain, with the help of a diagram, the Decision Tiee
Analysis and show its significance in capital budgeting
decisions.
8. (a) "social costs and benefits and private costs and
benefits differ, while undertaking economic appraisat
of a project." Explain the reasons for such
differences between the two.
(b) Distinguishbetween businessrisk and financial risk. If
the businessrisk in a project is high, what advice
would you give ?
MS42@ 1,000
IUANAGEMEM PROGRAMME
Term-End Examination
Decembe4 2OO6
MSit(t @ : MANAGEMENTCONTROL
SYSTEMS
Time:3 hours Maxlmum Marks: 700
(Weishtage70%o)
Nole :
(i) There are two Sections: Section andB.
A
(ri) SectionA is meant for the students who haue
registered MS-45beforeJanuary2005 i.e. upto
for
July 2004 semesten
Aiil Sectton B is meant for the sfudents who haue
registered MS-43from January2005 semester
for
onwards.
(iu) Attempt any fiue questions
(u) All questionscarry equal marks.
Ms43@ P.T.O.
SECTION A
1. "The changing organisationalstructure of companies has
lead to increased delegation of authority and
responsibility." Explain.
2. Explain the yardsticks available for measuring the
performance of a profit centre.
3. Describethe variousmethodsavailable determinationof
for
interdivisional hansfer pnce.
4. Discuss the methods available for the measurement of
performance of an investmentcentre.
5. Explain the concept of Zero Base Budgeting. Describethe
methodology used ahd steps taken to implement the Zeto
Base Budgeting process.
6. "The objective of responsibility accounting is to estrablisha
means of performance maintenanceand control." Explain.
7. Write short notes on the following :.
(i) Management control systemin professionalfirms
(iil Managementcontrol systemin hospitals
(iii) Sub-contractingand control
(iv) Management control systemin hotels
8. Explain the primary diflerence between profit and
non-profit organisations. Discuss the method adopted for
measuring output in a non-profit organisation'
Ms43@
SECTION B
1 . Identify the viarious critical components of management
control and explain how do they influence the behaviour in
an organisation.
2. Differentiate between Corporate tevel strategies and
Business unit level strategies. Also explain the application
of BCG Model in formulating Businessunit level strategies.
3 . Discuss the general nature of responsibility centres and
explain the consideration involved in their classification.
4. Explain the role of profit centre in an organisation and
discuss how the boundary conditions influence the
measurement of the performance of profit centres.
5. How is the control process for Capital expenditure
different from that for Revenue expenditure ?
6. Explain the ',rarioustypes of metrics used in Performance
Measurement.
7 . What are the risks faced by the banks ? Explain the rote of
Management Control System in containing these risks.
8. Whert are the characteristics of a project organisation ?
Explain how do these characteristics affect the design. of
control system for a project.
1,000
MANAGEMENT PROGRAMME
Term-End Examination
December, 2006
MS44@ : SECURTTY
ANALYS|SAND
PORTFOLIOMANAGEMENT
Time:3 hours MaximumMarks: 100
(Weightage70%o)
Note : Attempt any fiae questions.All questionscarry
equal marks presentualueqnd annuity tablesare
to be prouided,if askedfor.
l. What is Invesknent ? How is it different from speculation
?
Explain the various steps invorved in the investment
process.
2' (a) Explain the risks'invorved,in Bond investment. How
would you calculate the value of a bond ? Illustrate
your answer with an example.
(b)
'j
Find the present value of the Bond when its face
rnlue is Rs. 100, coupon rate is L5% and current
'
market price is Rs. 90,/-. The bond has a maturity
six years and will be redeemed at a premium of
70o/o.
of
l
Ms-44@ P.T.O.
reform the
$ . , Wtrat initiatives have been taken by SEBI to
Indian capital market ? Critically evaluate the same'
jl
' '.:'1t, l: : ' .:* i, r,l: ; ' l l i , ' ri
,1 ,t't ;',, . r il
an
4. What is an efficient frontier ? How does it establish
optimum Portfolio
?
5. (a) What do you understand by Portfolio Management
,n&c-uss"the '.vartous stepsr 'inwlved:' in' ptirtfolio
m a n a g e f n e :f :t ,t ) , " : : ' : 1 " ". ' '
i 1: ' I r ' " ' l
h) The ABC and XYZ Corporations have the followtnS
''
risk and return status :
', o.='Z$o/o
%=3d6
'
" '' YRx=o'5
Determihe the minimum'risk portfolio'
1"*l':'::' ::'i:
----:------
.
,, .,,
?
6. What qre the pros and cons of investing in mutld Junds
OO"r* * uurro,r, typeslqf mutr,ratfund schemes avalbblg
in India.
' '-
7 . \lr/ritp shor-t'sotep9n'-aEy/onr oJ'tho'jfollowirg n; '""i "'
(a)'' ArbitrdEbur
(b) Filter Test
(c) Beta
@)';lnvpstraent'Media
(e) AgencYCost
(0 Inflation Risk
:1,o00
r,$,i
Ms44@
MANAGEMENT PROGRAMME
Term-End Examination
December, 2006
MS-45@ : INTERNATIONAL
FINANCIAL
MANAGEMENT
Time:3 hours MaximumMarks: 100
(Weightage704/o)
Note : This question paper consisls of two Secfions,
Section A and Section B.
Section A is fo be attempted by students who
were registered t'or the course prior to January
2006.
Section B is to be attempted by students who
have been registeredt'or the coursefrom January
2006 onwards.
Attempt any fiue questions. AII questions carry
equal marks.
MS45@ P.T.O.
SECTION A
l. In the light of various theories of Foreign Direct
Investment, explain the drivers encouraging Foreign Direct
Investmentin India.
What is Balance of Payments ? Explain in detail the various
concepts and conventions regarding Balance of Payments
(Bo").
3. Write short notes on the following :
(i) Foreign Exchange Market
(ii) Spot and Forward Exchange Rates
(iii) Cross Rates
(iv) AccountingExposure
4. Discuss in detail the External Techniques of Foreign
Exchange Exposure Management.
Distinguish between pre-shipment financing and
post-shipment financing. Discuss in detail how
pre-shipment credit is provided by comrnercial banks. Are
they entitled for refinancingalso ? If yes, by whom ?
6. "ln the.gontext of international cash management, hedging
is an amalgam of insurance and specdation." Explain.
7. Explain the various considerations irrvobJ in International
Financing Decisions.
MS-45
@
Write short notes on the following
: ,
(t Strategiesof portfolio investment
(ii) Reinvestment
and Repatriation of earnings
by
subsidiaryof an MNC
(iil) Rupee Accounts
of Non{ndians
(iv) Euro-currency and
Euro-bond markets
Ms45@
P.T.O.
SECTION B
for EastAsian FinancialCrisis
1 . Explainin detail the causes
qf L997. , ,
MonetaryFund (lMF) in
2. Explain the role of International
maintainingintemationalliquidity'
3. Write short noteson the following
(i)' CurrencY Futures
(ii) CurrencY'SwaPs
(iiO Transaction ExPosure
(iv) Tax Havens
Power Parity relationship'
4. Explain in detail the lPurchasing
which are used to
5 . Fxplain in detail the various instruments
markets'
raise resources from international
and provided. by
6. Explain the various products 11ces
to
(ESGC) exporters
Corporation
Guarantee
il;;it
in India.
,,Diversification attempts to combine high returns with low
7.
risks." FxPlain.
budgting differ from
8. How does the iniernational capital
Discuss'
the domestic capital budgeting ?
1,000
MS45@
MAIIAGEMENT PROGRAMME
Terrn-End Examination
December, 2AO6
MS-46@ : MANAGEMENT FINANCIAL
OF
SERVICES
Time:3 hours MaximumMarks: 700
Note t
There are three SectionsA, B and C.
Section A is compulsory t'or all the candidates.
Sectlon B is meant only t'or the candidates, who
haue registered for MS-46 prior to July, 2045 i.e.
upto January, 2005 semesten
Section C is meant only t'or the candidates who
haue registered for MS-46 from July, 2005
semester onwards.
All quesfions carry equal marks.
Ms-46
o P.T.O.
SECTION A
Attempt any three quesfions from this section.
l. "The success of financiat services firms depends on their
ability to identify risk associatedwith different financial and
trade dealings in the market, devise a product to tmnsfer
the risk and develop a strategy to manage the risk."
Identify these risks and discussthe different strategies that
are available to such firms to manage these risks.
2 . Describe the manner in which debt instruments are traded
in stock exchanges. Also explain the execution and
settlement of trades in debt instruments.
3. What are Mutual Funds ? Describe in brief their
constitution in India according to SEBI regulations.
Distinguish between closed-end schemes and open-end
schemes.
4. Discuss the various pre-issue activities undertaken by
merchant bankers while raising funds from the capital
markets.
5. Explain the meaning and significanceof factoring. What
are different types of factoring arrangements ? Discussthe
important aspects to be incorporated in factoring
agreements.
MS46 @
SECTION B
(Pre-Revised)
Attempt any two questions from this section.
'lSecuritisation
6. can be implemented by three kinds of
instruments differing mainly in their maturity
characteristics." Discuss these instruments in detail and
explain their pricing mechanism.
7. Briefly describe the emergence of merchant banking in
India. Enumerate the specialised services provided by the
Merchant Bankers.
8. Write short notes on any four of the following :
(a) Chip card
(b) Conservative fund
(c) Fund of funds
(d) Utility Ratings
(e) Governmeni dated securities
Ms46@ P.T.O.
SECTION C
(Revised)
Attempt any two questions from this section.
6. (a) "The emergence of depository system is a sign of
prosperity of financial market system, specially
capital market." Discuss. l
(b) Describe in detail the working of National Securities
Depository Limited.
:
7. How do insurance brokers differ from insurance agents ?
Discussdifferent types of brokers and write a detailed note
on the fungtions of a direct broker.
8. Write short notes on any tour of the following I
(a) Travel insurance
(b) Property risks
(c) Business card
(d) Bond fund
{e) Repo and Reverse repo
..
MS46@ 1,000
MANAGEMENT PROGRAMME
(Banking and Finance)
Term-End Examination
December, 2A06
MS-422@: BANK FINANCIAL
MANAGEMENT
Time:3 hours Maximum Marks: 700
Note:
(r) Atte;mptany fiue guesfions.
(ri) All questionscarry equal marks.
1. (a) "The basic role of financial system is to allow the
capital flow from Surplus sector to Deficit sector."
Elaborate.
(b) Explain the different categories of Financial
Institutions which play a role in channelling savings
for productive purposes.
2. What do you understand by own funds of the banks ?
Explain the provisions of the Banking Regulations Act,
L949 in this regard.
MS422@ P.T.O.
--.-
'
3. Why is cost of funds important for banks ? Discussthe
factors affecting cost of funds of a bank.
4. Discussthe varioustypes of securities which banks invest
in
their funds. Explain the three categories in which these
securities are classified and show the importance of
Government Securities.
5. Discussthe salient features of the following :
(a) Inter-BankPqrticipation Certificate
(b) Certificate of Deposit
6. Why should banks manage their risks ? Describe briefly,
different types of risks a bank is exposed to.
7. Why is product pricing important in the context of a
bank ? What inputs, in your view, are neeAed banks in
for
order to price their products ?
8. Write short notes on arry four of the following :
(a) Scope of Financial Managementin Banks
(b) Rupee SubordinatedDebt
(c) Treasury function in Banks
(d) Credit Rating
(e) Accounting Standards for Banls
Ms422@ 1,000
II{ANAGEMENT PROGRAMME
(Banking and Finance)
Terrn End Examination
December, 2OO6
MS-423@ : MARKETING F|NANC|AL
OF
SERVICES
Time:3 hours MaximumMarks: 700
(Wetghtage
70%o)
Note : Attempt any liue guestions.All questtonscarry
equal marks.
1. Explain the various behavioural models for analysing
buyers' behaviour and discussthe marketing applications of
each model.
2. Discuss the rmrious products and services that are offered
by banks.
3. Why is pricing important for.banks ? Explain briefly the
various methods of pricing of banking products/services.
4. How do banks retain the customers through quality,
servicesand values ? Discusswith suitable examples.
Ms+zs
@ P.T.O.
5. How have the information and communication
technotogies changed the various facets of stock-broking
. I ';.^ l':;":
services?
Discuss the need for marketing insuiance services' Explain
the various strategies adopted for effective marketing of
insuranceservices.
7 . How do the developments in information and
communication technologi", impact on international
"*"*
businessand the supporting financial services? Discuss'
8. Discussthe basic steps involved in portfolio management of
Mutual Funds. How do the Mutual Funds calculate the Net
Asset Value of their units ? Discuss.
MS-423
o 1,000
MANAGEMENT PROGRAMME
(Banking and Finance)
il:*ff;H""
MS-424@: INTERNATTONAL
BANKTNG
MANAGEMENT
Time :3 hours Maximum Marks : i.AO
Note t Attempt any fiue quesfions. AII questions carry
equal marks.
1. (a) Differentiate between World Bank and International
Monetary Fund.
(b) Briefly discussthe role and functions of International
Bank for Reconstruction and Development flBRD)
and its subsidiaries.
2. What is Basel Capital Accord, 1988 ? Explain its details
and the Amendments, made therein in the year 1996, to
incorporate market risks.
3. Why is 'Choice of [aw' important in the context of
International Banking ? Discuss the factors which may
influence the parties in their selectionof a governing law.
MS424@ P.T.O.
'Exchange Earner's Foreign Currency Account' ?
4. What is
Discuss the limits upto which Foreign Currency may be
credited to these Accounts and the approved purposes for'
which funds held in these Accounts are permitted to be
utilised.
'Dealing Room' in a Forex
5. What is the role of a
Treasury ? Explain the risks involved in Dealing Room
operations and the mechanismsof eliminating or reducing
these risks.
'lnterest risk' ? What are the major types of
6. What is
interest rate risk ? Explain the different methods of
measuring and managing interest rate risk.
'currency swaps' ? Explain the different types of
7 . What are
currency swaps and indicate their benefits and risks'
8. Wite short notes on any fourof the following :
(a) Forms of Regulation
(b) FASB 133
(c) Foreign Currency Loans
(d) Lead Management Team
(e) CAMELS Model
;1,000
MS424@
'i-
:::r'':: nannacrnaerw
pfocnnlruE
i:':1: : : '
.
. (Banking and Finance)
Term-End Examination
i,,.,i,r .
,, Depgmberr,,2Q06,
MS-425@ : ELEGTRONIC BANKINGAND
IT IN BANKS
Time:3 hours MaximurnMarks: 700'
(Weightage
70%o)
Note ; Answer any fiue questions.AII questions carry
. equal morrcs.
1. (a) i'ir"ttu*,ian,leapfrog through IT." -: Discuss.
rr{Stendardization
fttri' is a must foribanks." - Explain.
2. (a) "Call-centre is a key to achieve CRM." - Discuss.
(b) "EBPP reducescost to the banks." - Justify.
3. (a) What is a smart card ? How is it useful for banks ?
(b) Explain credit card activity cycle.
4. (a) What is a VPN ? How is it useful for banks ?
(b) How does data mining support customer
intelligence?
{v1&425
(D P.T.,O.
5. (a) Distinguish between Cybercash and Digicash.
(b) How do we enable .e-commerce? What are the
components to start e-commerce actMties ?
6. (a) Explain the role and functions of certification
.
authorities.
h) What is a digital signature and what are its uses ?
'' :': I r1''
7. Explainany fourof the following:
: : : ' . .
(a) WAP Technology
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(b) Benefitsof'SCM
(c) Data Mining
(d) EDI . .: :;''.:.i;
(e) Decision Support System (DSS)
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8. (a) Explain the phases of Disaster Recovery Flanning. ; i
(b) What is co-sourcing ? Discuss its advantages again$
the outsourcing.
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