CWA ICWA Foundation : Economics and Business Fundamentals - December 2009

CWA ICWA Foundation • Economics and Business Fundamentals • December 2009

This Paper has 69 answerable questions with 0 answered.

P—3(EBF) Syllabus 2008
Time Allowed : 3 Hours	Full Marks : 100

The figures in the margin on the right side indicate full marks.
SECTION I (Marks 60)
Answer Question No.1 which is compulsory and any two from the rest.
Marks

The figures in the margin on the right side indicate full marks.

SECTION I (Marks 60)

Answer Question No.1 which is compulsory and any two from the rest.

Marks

(a)

Answer the following :

1x9

(i)

Scarcity definition was given by:

(A)	L.Robbins
(B)	Alfred Marshall
(C)	J.M.Keynes
(D)	Adam Smith

(0)

(ii)

Real Investment comprises of:

(A)	Machine
(B)	Shares
(C)	Debenture
(D)	Bond

(0)

(iii)

Consumer‘s surplus was propounded by:

(A)	Alfred Marshall
(B)	Pigou
(C)	Malthus
(D)	Robbins

(0)

(iv)

Law of demand explains:

(A)	Quantitative relationship
(B)	Qualitative relationship
(C)	Functional relationship
(D)	None of the above.

(0)

(v)

Exception to the law of supply is:

(A)	Agricultural product
(B)	Scarce goods
(C)	Labour market
(D)	All the above.

(0)

(vi)

Economic costs comprise of:

(A)	Explicit costs
(B)	Implicit costs
(C)	Normal profit
(D)	All the above.

(0)

(vii)

Homogeneous product is the characteristic of:

(A)	Perfect competition
(B)	Monopoly market
(C)	Monopolistic competition
(D)	Oligopoly

(0)

(viii)

Types of price discrimination are:

(A)	Price discrimination of first degree
(B)	Price discrimination of second degree
(C)	Price discrimination of third degree
(D)	All the above.

(0)

(ix)

Non–price competition exists in:

(A)	Monopoly market
(B)	Oligopoly
(C)	Monopolistic competition
(D)	Discriminating monopoly.

(0)

(b)

Fill in the blanks :

1x12

(i)

Net National Product = Gross National Product minus ________

(0)

(ii)

Per Capita Income = National Income.

(0)

(iii)

National Income data depict the ________ of Income among economic units.

(0)

(iv)

Labour cannot be separated from ________.

(0)

(v)

Essay on the Principle of Population was written by ________.

(0)

(vi)

Formula for calculating optimum population is ________.

(0)

(vii)

Visible items comprise of exports and ________.

(0)

(viii)

Comparative Cost Theory of International Trade was propounded by ________.

(0)

(ix)

Balance of payment is ________ than Balance of Trade.

(0)

(x)

Money is a matter of functions four:
a medium, a measure, a standard and a ________.

(0)

(xi)

Quantitative Theory of Money was propounded by ________

(0)

(xii)

Cash Balance Approach is based on the ________ of money.

(0)

(c)

State which of the following statement is ‘true’ and which is ‘false’.

1x9

(i)

There is continuous rise in price level and the value of money decreases during inflation.

(0)

(ii)

Dear Money Policy is adopted during inflation.

(0)

(iii)

There is glut of goods during deflation.

(0)

(iv)

Central Bank creates credit.

(0)

(v)

Cash Reserve Ratio is a limitation of credit creation.

(0)

(vi)

IFCI was set up in July 1948.

(0)

(vii)

Unit Trust of India is an Investment Bank.

(0)

(viii)

International Monetary Fund stabilises the foreign exchange rate.

(0)

(ix)

Special Drawing Rights facilitate the international liquidity.

(0)

(d)

Define the following terms in not more than two lines:

1x6

(i)

Indirect Tax,

(0)

(ii)

Proportional Tax,

(0)

(iii)

Principle of Certainty,

(0)

(iv)

Bank Rate,

(0)

(v)

Marginal Cost,

(0)

(vi)

Cash Reserve Ratio.

(0)

Define Central Bank. Discuss its various functions.

2+10

(0)

Write short notes on the following:

4+4+4

(a)

Characteristics of Perfect Competition;

(0)

(b)

Consumption Function;

(0)

(c)

Deficit Financing.

(0)

What is EXIM Bank? What are its functions? State the ‘three dimensional strategy’ developed by the EXIM Bank.

4+4+4

(0)

SECTION II (Marks 40)
Answer Question No. 5 which is compulsory and any two from the rest.
Marks

SECTION II (Marks 40)

Answer Question No. 5 which is compulsory and any two from the rest.

Marks

(a)

Answer the following :

1x6

(i)

Economic activities are those which are inspired by:

(A)	Spiritual needs
(B)	The desire to earn money
(C)	Desire to help mankind
(D)	All the above.

(0)

(ii)

In a limited liability partnership:

(A)	All partners have limited liability
(B)	All partners have unlimited liability
(C)	Some partners have limited liability
(D)	Some partners have no liability at all.

(0)

(iii)

Minimum number of members needed for a public company is:

(A)	9
(B)	7
(C)	5
(D)	2

(0)

(iv)

Which of the following is not a social obligation for a firm:

(A)	Avoiding anti–social practices
(B)	Maintaining a healthy environment
(C)	Ensuring job satisfaction of employees
(D)	Earning adequate profit.

(0)

(v)

Organised stock exchange in the country was started in Bombay in

(A)	1877
(B)	1939
(C)	1977
(D)	1907.

(0)

(vi)

Latest developments in communications media include:

(A)	Email
(B)	SMS
(C)	Video–conferencing
(D)	All the above.

(0)

(b)

Fill in the blanks :

1x6

(i)

A company is an ________ association.

(0)

(ii)

The quorum at the annual general meeting in case of a private company is _______.

(0)

(iii)

Government policies are an important part of ________ environment of a company.

(0)

(iv)

No person can be a member of a stock exchange if he is less than ________ years of age.

(0)

(v)

Written communication provides a ________ record for future reference.

(0)

(vi)

The main motive of state enterprises is to render ________.

(0)

(c)

State which of the following statement is "True" and which is "False":

1x6

(i)

The liability of a sole proprietor is always limited.

(0)

(ii)

The Company Law has not given any legal status to promoter.

(0)

(iii)

The same environment may offer opportunities to some firms and threats to some other firms.

(0)

(iv)

A stock market encourages capital formation.

(0)

(v)

A stock exchange deals with the securities of all companies.

(0)

(vi)

For communication to be effective, it must be communicator–oriented.

(0)

(d)

Define the following terms in not more than two lines:

1x6

(i)

Trade secretary.

(0)

(ii)

Partner by estoppel.

(0)

(iii)

A multinational company.

(0)

(iv)

Certificate of commencement of business.

(0)

(v)

Stock Exchange Clearing House.

(0)

(vi)

Forward delivery contracts.

(0)

Write short notes on the following:

4+4

(a)

Merits of Limited Liability Partnership;

(0)

(b)

Shares and Debentures.

(0)

What is listing of securities? What are the steps involved in completing a transaction through stock exchange broker?

2+6

(0)

What is communication? Explain Encoding, Decoding and Feedback as the elements in the process of communication.

2+2+2+2

(0)

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