VIEWS: 9 PAGES: 1 POSTED ON: 3/7/2010
-2- Register Number: 3231 6. State the importance and the economic functions of Name of the Candidate: stock exchange. 7. Describe the nature and role of any Five money DIPLOMA EXAMINATION, 2008 market Instruments. (BANKING AND FINANCE) 8. What is ‘Securitization’? Explain the process (PAPER-III) involved in it. 130-FINANCIAL MARKETS 9. Describe the framework of ‘Liquidity preference theory of Interest’. May) (Time: 3 Hours Maximum: 80 Marks 10. What are the regulations governing transactions (5×16=80) between clients and stock brokers? Describe. Answer any Five questions Each questions carries 16 mark ~~~~~ 1. Distinguish between money market and capital market and state the constituents of each. 2. Account for the causes of fluctuations in foreign exchange rates. 3. Explain clearly the concepts ‘present value’ and ‘yield to maturity’ and stake their significance. 4. What do you understand by ‘Factoring’ and ‘Forfeiting’ services? Describe. 5. Who are the participants in derivatives market? State the important features of ‘Derivatives’.
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