1. Explain the Fisher’s equation of exchange. How is the cash balances equation an improvement over Fisher’s equation? (20)

2. Explain the concept of ‘Unit Banking’. What are the merits and demerits of unit banking system? Suggest measures to overcome the demerits of unit banking system. (20)

3. Discuss briefly the management, functions and performance of SIFCs/SIICs. (20)

4. Discuss the functions of the World Bank. Does its performance solve the capital scarcity problem of less developed countries? (20)

5. Write short notes on the following :

(a) Cambridge equation of Exchange

(b) Money market

(c) Nationalisation of Commercial Banks

(d) Inflationary gap (4×5)