Course questions: Money Banking & Finance

BC: 307 1
University of the Punjab

MONEY, BANKING & FINANCE

Total Marks: 100
Passing Marks: 40

Money Section
1. Define Money. Discuss its important functions OR what money is. Discuss its
primary and secondary function or “Money is what money does.”
2. What is barter system? Describe the inconveniencies / inefficiencies / difficulties involved in the
barter exchange. How these difficulties can be removed by the introduction of money
3. Discuss the growth and evolution of money and also discuss the qualities of good money material
OR Define money. What are the different stages in the evolution of money?
4. Discuss the role / significance / importance of money in modern economy.
5. Define paper money. Discuss the advantages and disadvantages of paper money
6. Describe the various principles and methods of note issue. What method or system is followed in
Pakistan?
7. What is the term “Value of money”? What are the factors which bring changes in the value of
money?
8. What is meant by the term value of money? Discuss the consequences or effects of the changes in
the value of money OR What are the effects of changes in Price Level on different
classes of the society?
9. State, explain and criticize the Quantity Theory of Money? Prove it with the help of Fisher`s
equation of exchange and also do criticize on it.
10. Discuss the Cambridge or Cash Balance Version to the QTM
11. Define & explain the modern theory of the value of money
12. What is meant by the term value of money, how value of money is measured OR What is
index number? How it is constructed also discuss its uses / advantages and limitations/
disadvantages of it.
13. What is meant by inflation? Discuss the causes of inflation in Pakistan and also suggest the
remedial measures
14. Define deflation. What are the causes and remedies of it?
15. What is devaluation? Give in detail its effect on the economy of a country
16. Differentiate between deflation, reflation, stagflation, disinflation and devaluation
17. What is trade cycle? Describe the various phases / Characteristics /features of trade cycle
B.COM Part I

18. What is trade cycle? Explain its various causes / theories and also describes the remedial
measures of it. Suggest measure to control it
19. What is meant by foreign exchange? Discuss the factors causing in exchange rate
20. What is foreign exchange? Explain the method of foreign exchange control
21. Explain the following:

IMF, IBRD, ADBP

Rawalpindi Cantt College of Commerce

 Course questions: Money Banking & Finance
BC: 307 2
University of the Punjab

FINANCE
1. Define business finance. What are the different types of business finance? Also examine the
sources of different types of business finance
2. Discuss the equity financing. What are the advantages and disadvantage sof it?
3. What is debt financing? Discus its advantages and disadvantages of it
4. Explain the various modes of Islamic financing OR What is interest free financing?

BANKING
1. Define bank. Discuss in detail the different kinds of bank.
2. What is commercial bank? What are the primary & secondary functions of central bnak?
3. How does commercial bank create credit? Indicate the limitations on the powers of a bank to
create credit OR “Loans create deposit”, discuss the statement and point out the limitation
on the power of bank to create credit
4. What is central bank? What are the functions of central bank? Also discuss its objectives
5. Differentiate between central bank and commercial bank
6. Define monetary policy. What are the objectives of it? Briefly discuss the methods of monetary
policy OR Define monetary policy. What are its implementing tools?
7. What is letter of credit? What are the parties to it? What is the procedure to open a letter of credit
and also describe its types and importance?
8. Define negotiable instrument. Why these are called negotiable? Differentiate between bills of
exchange, promissory note and Cheque
9. Define Cheque? Write in detail about its different types? Under what circumstances a cheque is
terminated or dishonored?
10. What are the different types of advances / loans offered by commercial bank?
11. What is the procedure for opening a bank account? Discuss the various sources of funds for
commercial bank?
12. Explain in brief the rights and duties of banker and customer.
13. What is capital market? Differentiate between capital and money market
14. Discuss the privatization of the bank in Pakistan. What are its advantages and disadvantages?
15. Explain the causes of nationalization of banks in 1972? Describe the advantages and
disadvantages of such nationalization
16. Discuss the role of commercial bank in modern economy
17. Write short notes on the following:
a. Types of bank account f. Relationship between banker and customer
b. Banking in Pakistan g. Islamic development bank
c. Credit instruments h. Mint par parity thery
d. Clearing house i. Open market operation
B.COM Part I

j.Cooperative banks

Recommended Book:

Rawalpindi Cantt College of Commerce

 Course questions: Money Banking & Finance
BC: 307 3
University of the Punjab

B.COM Part I

Rawalpindi Cantt College of Commerce