MAISAGEIVTENT
P,RoffiE
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Term-End Examination
June, 2OO7
MS45O : MANAGEMENT OF FINANCIAL
$ERVICES
Time: S,hours Maximlrm Marks ' 100
Nofe 3 Attempt any fiue questions. AII quesfions carry
equal marks.Present ualue tables will be prouided
if asked for.
1 . Disctrss the impact of inforrnation technology o" the
financial services sector from the service providers' and
customers' points of view
l '
2. Explain,,theconcept of ,depositories. the process
,D€scribe
of sudtching,over,to:
depository,systgmfrom the scrip based
system.Bring out the advantages the depositorysystem.
of
3. (a'}' "Explainthe concept'and philosophyof mutual funds.
(b) "Mutual funds arecharacterised many advantages
by
that they share with other forms of investmentsand
"
what they possessuniquely themseltdes. What are
t ":.i .^ , "
these advantages Briefly discuss.
?
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4. ABC Chemicals Ltd. is planning to come up with a new
product and hence is considering the acquisition of a large
equipmentto set up a separateunit for Rs.12,00,000. The
equipment is expected to have an economic useful life of
B years. The equipment can be financed either with an
eight yeay term loan at l4o/o interest, repayable in equal
instalments of Rs. 2,58,676 per year or by an equivalent
amount of lease rental per year. In both cases, payments
aye due at the end of the year. The equipment is subject to
the straight line method of deprecration. Assuming no
salvage value anC 50o/ocorporate tax rate, which of these
financing alternatives should the ccmpany select ?
5. Who is an insurance broker ? Discuss the different
categories of brokers and the functions performed by each
of them.
6. Explain the meaning and mechanism of factoring. Enlist the
main functions performed by a factor. Distinguish between
With Recourse Factoring and Without Recourse Factoring.
7. (a) What are the various aspects that a merchant banker
has to keep in mind before selecting a public issue
proposal ?
(b) Explain the book building process in detail"
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@
8. Write short notes on any four of the following :
(a) Leveragedlease
(b) Securitisation housing loans
of
(c) Burglaryinsurance
(d) Travel insurance
(e) Credit cards
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o 1,000