Download JNTUA (JNTU Anantapur) MBA (Master of Business Administration) 2019 June Supplementary 2nd Sem 18E00204 Financial Institutions, Instruments And Markets Previous Question Paper
MBA (Fintech) II Semester Regular Examinations June 2019
FINANCIAL INSTITUTIONS, INSTRUMENTS & MARKETS
(For students admitted in 2018 only)
Time: 3 hours Max. Marks: 60
All questions carry equal marks
*****
SECTION ? A
(Answer the following: 05 X 10 = 50 Marks)
1 Discuss the constituents of Indian financial system.
OR
2 Critically analyse the role of RBI in Indian economy.
3 Define NBFC. Discuss various services provided by NBFCs.
OR
4 What are the different types of mutual funds? Explain in detail.
5 Define and differentiate between primary markets and secondary markets.
OR
6 Explain in brief about the money market instruments.
7 Define factoring. What are the advantages of factoring?
OR
8 What are the features of operating lease? Differentiate between lease and hire purchase.
9 What are the challenges being faced by investment bankers? Explain in detail.
OR
10 Who is depository participant? What are the benefits of depository system?
SECTION ? B
(Compulsory question, 01 X 10 = 10 Marks)
11 Case Study:
Life insurance in India traditionally has been sold by way of harping on the tax benefits. An
endowment plan has been the eternal favourite of life insurance agents. Let us consider one
such endowment plan by ABC company Ltd below. Assume Mr. Vijay to be an individual,
30 years of age, who is to decide whether to buy a regular endowment plan. The sum assured
for the plan is Rs. 10,00,000 and the tenure is 15 years.
Endowment plant of ABC company Ltd.
Age(years) Sum Assured(Rs) Premium(Rs) Tenure(Years) Maturity Amount(Rs)
30 10,00,000 65,070 15 16,84,000
(Assured rate of return by the insurance company: 10%)
{Compounded annual growth rate(CAGR) on Rs.65,070: 6.55%}
Contd. in page 2
Page 1 of 2
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Code: 18E00204
MBA (Fintech) II Semester Regular Examinations June 2019
FINANCIAL INSTITUTIONS, INSTRUMENTS & MARKETS
(For students admitted in 2018 only)
Time: 3 hours Max. Marks: 60
All questions carry equal marks
*****
SECTION ? A
(Answer the following: 05 X 10 = 50 Marks)
1 Discuss the constituents of Indian financial system.
OR
2 Critically analyse the role of RBI in Indian economy.
3 Define NBFC. Discuss various services provided by NBFCs.
OR
4 What are the different types of mutual funds? Explain in detail.
5 Define and differentiate between primary markets and secondary markets.
OR
6 Explain in brief about the money market instruments.
7 Define factoring. What are the advantages of factoring?
OR
8 What are the features of operating lease? Differentiate between lease and hire purchase.
9 What are the challenges being faced by investment bankers? Explain in detail.
OR
10 Who is depository participant? What are the benefits of depository system?
SECTION ? B
(Compulsory question, 01 X 10 = 10 Marks)
11 Case Study:
Life insurance in India traditionally has been sold by way of harping on the tax benefits. An
endowment plan has been the eternal favourite of life insurance agents. Let us consider one
such endowment plan by ABC company Ltd below. Assume Mr. Vijay to be an individual,
30 years of age, who is to decide whether to buy a regular endowment plan. The sum assured
for the plan is Rs. 10,00,000 and the tenure is 15 years.
Endowment plant of ABC company Ltd.
Age(years) Sum Assured(Rs) Premium(Rs) Tenure(Years) Maturity Amount(Rs)
30 10,00,000 65,070 15 16,84,000
(Assured rate of return by the insurance company: 10%)
{Compounded annual growth rate(CAGR) on Rs.65,070: 6.55%}
Contd. in page 2
Page 1 of 2
Code: 18E00204
Now let us look at an alternative scenario. Consider a case where Mr. Vijay, instead of investing
Rs. 65,070 in an endowment plan, buys a term plan with a sum assured of Rs. 15,00,000 for
tenure of 15 years. The premium works out to approximately Rs. 3,600 per annum. Also, he
invests the remaining amount of Rs. 61,470 (Rs. 65070-Rs, 6,600) in public provident fund
(PPF).
Term plan from XYZ company Ltd.
Age (years) Sum Assured (Rs) Premium (Rs) Tenure (Years) Death Benefit (Rs)
30 15,00,000 3,600 15 15,00,000
PPF
Amount Invested p.a (Rs) Assured Rate of Return Tenure (years) Maturity Amount (Rs)
61,470 8.00% 15 18,02,564
61,470 7.00% 15 16,52,808
Questions:
(a) What is the basic motive behind buying a life insurance policy?
(b) What are the various life insurance products offered by companies in India?
(c) What are the basic features of an endowment plan and a term plan?
(d) Calculate and compare the returns that would be available to Mr. Vijay under the two alternative
scenarios over the life of the investment.
(e) Which alternative would provide him with greater returns and why?
*****
Page 2 of 2
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This post was last modified on 27 July 2020