Code No. : Sub. Code : R 3 EC 52/ B 3 EC 52

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1 Reg. No. :... Sub. Code : R 3 EC 52/ B 3 EC 52 B.A. (CBCS) DEGREE EXAMINATION, NOVEMBER Fifth Semester Economics Main MONETARY ECONOMICS (For those who joined in July ) Time : Three hours Maximum : 75 marks PART A (10 1 = 10 marks) Answer ALL questions. 1. "" n '' GßÓ zupzøu GÊv Áº õº? (A) D.H. μõ ºm\ß (B) â õ μ QöμÍuº J.M. Rßì ÁõUPº

2 Who wrote the book money? (a) D.H. Robertson (b) Geoffrey Crowther (c) J.M. Keynes (d) Walker 2. Ê E»õP n Gß x (A) Esø v = Aa]h mh v (B) Esø v > Aa]h mh v Esø v < Aa]h mh v CøÁ GxĪÀø». Full bodied coins are (a) intrinsic value = face value (b) intrinsic value > face value (c) intrinsic value < face value (d) none 3. ö õß vmh øpâh mh Bsk (A) 1937 (B) The year in which gold standard was given up (a) 1937 (b) 1917 (c) 1930 (d) 1929 Page 2

3 4. uõ ì lu Gß Áº G u ÒÎ ß A[PzvÚº (A) Á[Q ÒÎ (B) õn ÒÎ Cμsk (A) ØÖ (B) GxĪÀø» Thomas Tooke is a member of (a) banking school (b) currency school (c) both (a) and (b) (d) none of the above 5. n v ÁÖ káx (A) Âø»US º P õp (B) Âø»US Gvº P õp ö õ mpðus º P õp ö õ mpðus Gvº P õp The value of money varies (a) (b) (c) (d) directly with the price level inversely with the price level directly with the commodities inversely with the commodities Page 3

4 6. ªP AvP õú n ªP SøÓ u AÍÄ ö õ øí ØÖÁx Cx õ øh TØÖ? (A) Pß\ß (B) QöμÍuº öá.g. Rßì hõàhß ØÖ PõÀ ºß. Who stated Too much money chasing too few goods? (a) Hansen (b) Crowther (c) J.M. Keynes (d) Dalton and courlbourn 7. }ºø ö õô GÚ káx (A) nzvß uøá (B) nzvß AÎ nzvß _ÇØ] ÁP GxĪÀø» Liquidity trap means (a) demand for money (b) supply of money (c) velocity of circulation of money (d) none of the above Page 4

5 8. öμõup C Põm õmøh GÊv ö õ Î À AÔbºPÒ (A) P mä ÀPø»UPÇP (B) ]UPõ Põ ÀPø»UPÇP xøμ Põ μõä ÀPø»UPÇP GxĪÀø» The cash balance approach to the quantity theory of money was developed by the economists of (a) (b) (c) Cambridge university Chicago university Madurai Kamaraj university (d) None of these 9. W.C. ªmaö\À GÊv zupzvß ö º (A)  õ õμ _ÇØ] (B) Áõo a _ÇØ] n Kº ÁºnøÚ GxĪÀø» The book written by W.C. Mitchell is (a) (b) (c) (d) Business cycles Trade cycles An outline of money None of the above Page 5

6 10. Rßêß TØÖ i õöqßó ÁoPa `ÇÀ GuÚõÀ HØ kqóx? (A)»uÚzvß CÖv{ø» BUPzvÓß (B) uøá² AÎ CÖv{ø» ~PºÄ  GxĪÀø» According of J.M. Keynes, how are trade cycles caused (a) (b) (c) (d) marginal efficiency of capital demand and supply marginal propensity to consume none PART B (5 5 = 25 marks) Answer ALL questions, choosing either (a) or (b). Answer should not exceed 250 words. 11. (A) J À» nzvß ußø PÒ õøá? What are the qualities of a good money? (B) nzvß \õº opøí ÂÍUQ GÊxP. Explain the contingent functions of money. Page 6

7 12. (A) nzvmhzvß C»UPn TÔ Auß ]Ó UPøÍ B P. Define monetary standard and explain its importance. (B) PõQu n öáî±mià ß ØÓ k À ÁÖz uzxá[pøí Bμõ P. Point out the principles followed in the printing of paper currency. 13. (A) n AÎ GßÓ öuõhøμ ÂÍUQ GÊx. Explain the term Money supply. (B) S, õºåà μõ ºm\ß BQ õ ß P mä \ ß õmiøú Bμõ P. Explain the Cambridge Equations of Pigou, Marshall and Robertson. 14. (A) náõmh GßÓõÀ GßÚ? ÂÍUQ GÊxP. What is meant by deflation? Explain. (B) nãup Gß x Âø»Áõ] ß E ºøÁU SÔUS ÂÍUSP. Inflation is a rise in the price level Explain. Page 7

8 15. (A) u GßÓõÀ GßÚ? GÆÁõÖ Pmk kzu kqóx? What do you mean by depression? How is it controlled? (B) ""J ÁoPa _ÇÀ u Põ»zvÚõÀ öuõhμ k ö\è U Põ» '' Bμõ P. A trade cycle is a period of depression followed by a period of prosperity Examine. PART C (5 8 = 40 marks) Answer ALL questions, choosing either (a) or (b). Answer should not exceed 600 words. 16. (A) nzvß ÁøPPøÍ ÂÍUQ GÊx. Explain the different kinds of money. (B) nzvß nõ Áͺa]ø ÂÁ. Explain the various stages in the evolution of money. 17. (A) Áøμ øóusm mh, Áøμ øóusm hõu \mh øó nzøu ÂÍUQ GÊx. Explain limited and unlimited legal tender money. Page 8

9 (B) Kº E»õPz vmhzvß ßø wø PÒ õøá? What are the merits and demerits of monometallic standard? 18. (A) P mä \ ß õk å ß \ ß õk J mk GÊxP. Compare the Cambridge equation with the cash transaction approach. (B) nz uøáø {ºn US PõμoPÒ õøá? What are the factors that determine the demand for money? 19. (A) nãup { õ ØÓx. n Áõmh `ÌÂøÚz vó øh ußö. CøÁ CμsiÀ náõmh ªP õ\ õúx ÂÁ. Inflation is unjust; deflation is inexpedient; of the two deflation is worse Explain. (B) nãup CøhöÁÎ GÝ P zvøú ÂÍUQ GÊx. Explain Inflationary Gap diagrammatically. Page 9

10 20. (A) ÁoPa_ÇÀ Pmk õk háiuøppøí ÂÍUSP. Discuss the measures undertaken to control trade cycle. (B) nãup náõmh Cμsøh² J mk GÊxP. Compare inflation and deflation. Page 10

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