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M.B.A. (Banking and Finance) DEGREE EXAMINATION, MAY 2010. First Semester PRINCIPLES OF BANK MANAGEMENT (2005 onwards) Time : Three hours Maximum : 100 marks PART A (5 8 = 40 marks) Answer any FIVE questions. All questions carry equal marks. 1. Describe the roles of a bank manager. 2. Explain the types of plans in banks. 3. What are the principles of delegation? 4. Enumerate the principles of direction. 5. How do you measure profitability in banks? 6. What are the acts and omissions amounting to indiscipline? 7. Describe the role of computerisation in modern banking. 8. How are leadership theory and styles related to motivation? PART B (4 15 = 60 marks) Answer any FOUR questions. All questions carry equal marks. 9. Write an essay on environment for effective bank management. 10.Explain the steps involved in MBO process. State its advantages and disadvantages.

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11.Discuss the process of organisation and explain what type of organisation structure is suitable to different types of organisation. 12.Compare and contrast any three theories of motivation with suitable illustrations. 13.What are the stages in controlling process? Explain. 14.Describe the stages in a selection process. 15.Discuss the steps in resource planning.

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M.B.A. (B & F) DEGREE EXAMINATION, MAY 2010. First Semester ORGANISATIONAL BEHAVIOUR (2005 onwards) Time : Three hours Maximum : 100 marks PART A (5 8 = 40 marks) Answer any FIVE questions. Each answer not to exceed 2 pages. 1. Explain the nature and importance of organizational behaviour. 2. Define group cohesiveness. What are the factors that influence group cohesiveness? 3. Explain organizational communication process and its barriers. 4. State the steps involved in organisational effectiveness. 5. What are the types of power? 6. Explain the elements of organisational change. 7. What is the significance of organisational culture? 2

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8. What are the findings in Hawthorne experiments? PART B (4 15 = 60 marks) Answer any FOUR questions. Each answer not to exceed 5 pages. 9. Explain the challenges and opportunities in organisational behaviour. 10.What are the factors that influence perception? 11.Examine how the principles of group dynamics could be applied in organisations. 12.Explain the organisational climate and discuss its impacts on employees behaviour. 13.Discuss the different styles of leadership. 14.List out the various consequences of job stress in employees. 15.Briefly enumerate on organisational development.

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M.B.A. (Banking and Finance) DEGREE EXAMINATION, MAY 2010. First Semester MANAGERIAL ECONOMICS (2005 onwards) Time : Three hours Maximum : 100 marks SECTION A (5 8 = 40 marks) Answer any FIVE questions. All questions carry equal marks.

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1. What is Managerial Economics? Explain the role of a Managerial Economist? 2. Define Demand and enumerate the chief characteristics of the law of demand. 3. Differentiate Explicit Cost and Implicit Cost. 4. What is Cost Control? Discuss the factors affecting it in India. 5. Explain profit as a consequence of market imperfection and monopoly. 6. Discuss the relationship between AC and MC with suitable diagram. 7. The Marginal Cost (MC) is always equal to the product price in perfect competition Comment. 8. Explain the various concepts of National Income that are useful for business decisions. SECTION B (4 15 = 60 marks) Answer any FOUR questions. All questions carry equal marks. 9. State and explain the various basic economic principles applied in business. 10.Enumerate the various factors determining the demand for non-durable consumer goods. 11.Discuss the different approaches to cost reduction. 12.What is price discrimination? When is it possible? Describe its types and objectives. 13.Explain production function with one variable input. 14.Discuss the evil effects of cyclical fluctuations on business firms. 15.What is Break-even analysis? Describe its uses.

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M.B.A. (Banking and Finance) DEGREE EXAMINATION, MAY 2010. First Semester FINANCIAL SERVICES AND INSTITUTIONS (2005 onwards) Time : Three hours Maximum: 100 marks SECTION A (5 8 = 40 marks) Answer any FIVE questions. 1. Discuss about various facets of Financial Services Industry in India. 2. What is leasing? Explain its merits and demerits. 3. Elucidate the various services rendered by Factoring Institutions. 4. What is meant by mutual fund? Explain its types. 5. What do you understand by portfolio management? 6. Write a detailed note on Bill discounting. 7. State the salient features of SIDCs. 8. List out the restrictions imposed on non-banking Financial Companies by RBI. SECTION B (4 15 = 60 marks) Answer any FOUR questions. 9. Briefly explain the functions of finance companies. 10.Explain the various guidelines relating to hire purchase financing. 11.What is factoring? How does it work? What are the various types of factoring? 12.Bring out the salient features of venture capital. 5

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13.Briefly explain guidelines relating to credit rating services. 14.Examine the role of NBFCs in the economic development of our country. 15.Discuss about the various kinds of financial services.

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M.B.A. (B & F) DEGREE EXAMINATION, MAY 2010. First Semester BUSINESS LAW (2005 onwards) Time : Three hours Maximum : 100 marks PART A (5 8 = 40 marks) Answer any FIVE questions. 1. What are the remedies for the breach of a contract? 2. What is Bailment? State the features of a Bailment Contract. 3. Differentiate between sale and agreement to sell. 4. What are the structures of consumer protection councils in Tamil Nadu? 5. List out the circumstances under which a court of law can order for dissolution of a partnership firm. 6. What is material alteration any two examples for material alteration? 7. State the features of Life Insurance Contracts. 8. What is a Memorandum of Association? What are its contents? PART B (4 15 = 60 marks) Answer any FOUR questions. 9. Explain legal provisions relating to free constant. 6

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10.What is contract of agency? What are the essentials of relationship of agency? 11.Explain how bailment may result without the owner actually delivering the goods to bailee. 12.Who are liable for mis statement in a prospectus? Explain the extent of the liabilities for such misstatements. 13.Explain the objectives of consumer protection act 1986. 14.Discuss the rights, duties and liabilities of partners in a partnership firm. 15.Define marine insurance. Explain the different types of marine policies.

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M.B.A. (B & F) DEGREE EXAMINATION, MAY 2010. Second Semester FINANCIAL ACCOUNTING (2005 onwards) Time : Three hours Maximum : 100 marks SECTION A (5 8 = 40 marks) Answer any FIVE questions. 1. Define accounting and give main attributes of accounting. 2. Briefly explain the different branches of accounting. 3. Distinguish between trade discount and cash discount. 4. Journalise the following transactions : (a) (b) (c) Bought goods on credit from John Rs. 4,000 Goods returned by Balu Rs. 500 Paid carriage inwards Rs. 100

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(d) (e) (f) (g) (h) (i)

Cheque Rs. 1,400 received from Charles in settlement of a debt of Rs. 1,500, returned dishonoured from bank. Paid insurance Rs. 300 Sale of Typewriter for Rs. 300 Rs. 250 owing by Mani written off as bad debt Drew three months bills on Nath for Rs. 4,000 Sold goods for 2,500 to David on credit.

5. Nataraja keeps his books by single Entry system. His position on 1 January 2003 was as follows. Cash in hand Rs. 300; Cast at Bank Rs. 3,750; Stock Rs. 16,000; Furniture Rs. 2,250; Sundry debtors Rs. 10,500; Plant and machinery Rs. 24,500; Sundry creditors Rs. 32,000. On 31st December, 2003 his position was as follows : Cash hand Rs. 375; Stock Rs. 23,750; Furniture Rs. 2,125; Debtors Rs. 18,300; Plant and machinery Rs. 33,750; Creditors Rs. 35,000. Bank over draft Rs. 13,000. in

During the year, Nataraj withdrew from the business for his private use Rs. 17,500 and introduced a further capital of Rs. 10,000. Find out the profit made during the year 2003. 6. What do you mean by Interim dividend and Final dividend? 7. What is acquisition of business? Give journal entries for its accounting treatment. 8. What are the advantages for a limited company by computerising their accounts? SECTION B (4 15 = 60 marks) Answer any FOUR questions. 9. What is an accounting equation? Describe the rules governing the accounting equation. 10.Following is the Trial Balance of Mr. Venu as on 31.3.2001, prepare a trading and profit and loss account for the year ended on 31.3.2001 and a balance sheet as on that date. Trial balance
Debit balances Stock (1.4.2000) Rs. 16,000 Credit balances Sales Rs. 1,00,00 0

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Drawings Wages Building Purchases Carriage inwards Cash in hand Sundry expenses Bills receivable Sundry debtors Bad debts Salaries Rent Printing and Stationery Loan to Ram

4,000 3,200 44,000 72,000 2,000 1,200 3,200 10,000 12,000 1,800 4,800 2,400 600 20,000 1,97,20 0

Bills payable Sundry creditors Bank overdraft Capital Commission Discount Returns outward

8,000 15,200 20,000 48,000 400 1,200 4,400

1,97,20 0

Adjustments : (a) (b) (c) (d) (e) Closing stock Rs. 25,000) Rs. 23,000 at cost (market value

Outstanding wages Rs. 1,000 ; Salary Rs. 700 and rent Rs. 400 Interest on loan outstanding Rs. 1,400 Depreciate building at 5% p.a. Create a provision on sundry debtors @ 5% for doubtful debts.

11.A Ltd and B Ltd. have agreed to amalgamate. A new company C Ltd. has been formed to take over the combined concern as on 31st December 2004. After negotiation, the assets of the two companies, have been agreed as shown in the following sheet. Balance sheets
Liabilities A Ltd. Rs. B Ltd. Rs. Assets A Ltd. Rs. B Ltd. Rs.

Share capital in 5,00,00 10,00,00 Land and 0 0 Rs. 10 each Reserve fund Profit and loss 50,000 50,000 buildings 3,00,00 5,00,000 0 Plant and 50,000 machiner 2,50,00 2,00,000 y 0

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Creditors

50,000

80,000 Goodwill Patents Stock Sundry debtors Bank

50,000

1,10,000 20,000 1,50,000 20,000 1,20,000 10,000 50,000 6,50,00 11,30,00 0 0

6,50,00 11,30,00 0 0

The assets and liabilities will be taken over by C Ltd. It issued 50,000 shares of Rs. 10 each to the public for raising working capital. Assuming purchase price is to be settled in fully paid shares of Rs. 10 each, compute the purchase consideration payable. Give journal entries and balance sheet in the books of C Ltd. 12.M/S Big Ltd. is a company with an authorised capital of Rs. 5,00,000 divided into 5000 equity shares of Rs. 100 each. On 31.12.2005, 2500 shares were fully called up. The following are the balances extracted from the ledgers of the company as on 31.12.2005.

Rs.
Stock Sales Purchases Wage (productive) Discount allowed Discount received Insurance up to 31.3.2006 Salaries Rent General expenses P and L a/c Printing and stationery Advertisement Bonus 10

50,000 4,25,000 3,00,000 70,000 4,200 3,150 6,720 18,500 6,600 8,950 6,220 2,400 3,800 10,500 DE8588

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Debtors Creditors Plant and machinery Furniture Cash and bank Reserve Loan from MD Bad debts Calls in arrear Additional informations : (a) (b) (c) (d)

38,700 35,800 80,500 17,100 1,34,700 25,000 15,700 3,200 5,000

Closing stock Rs. 91,500 Depreciation to be charged on plant and furniture at 15% and 10% respectively. Outstanding liabilities wages Rs. 5,200, Salary Rs. 1,200, Rent Rs. 6,00 Dividend @ 5% on paid up share capital is to be provided. Prepare Trading and Profit and Loss account for the year ended 31.12.2005 and balance sheet as on that date.

13.The following are the figures extracted from the books of Indian Bank Ltd. as on 31st March 2007. (All figures are in rupees) Interest and discount received Interest paid on deposit Commission, exchange and brokerage Rent received Profit on sale of investments Loss on sale of investments Salaries and allowances Directors fee Rent and taxes paid Printing and stationery Postage and telegram Other expenses

Rs. 12,50,000 6,50,000 2,40,000 40,000 20,000 5,000 3,60,000 30,000 24,000 12,000 5,000 4,000

11

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Audit fee Depreciation on banks property Balance of profit as on 1st April 2006 Other informations : (a) (b) (c) (d) Provide Rs. 15,000 for doubtful debts Provide Rs. 60,000 for taxation

3,000 15,000 2,40,000

Rebate on bills discounted on 31.3.2007 Rs. 40,000 Provide 10% dividend proposed on the paid up capital of Rs. 10,000

14.A Ltd sells its business to B Ltd. as on 31st December 2005 on which date its balance sheet was as under. Liabilities Rs. Assets Rs. Paid up capital 4,000 shares of Rs. 10 each Debentures Trade creditors General reserve P and L a/c Goodwill 4,00,00 Property 0 2,40,00 Machinery 0 80,000 Stock 80,000 Debtors 30,000 Cash 8,30,00 0 80,000 3,20,00 0 2,60,00 0 50,000 56,000 64,000 8,30,00 0

A Ltd. agreed to take over the assets exclusive of cash and goodwill at 10% less than the book value and to pay Rs. 1,20,000 for goodwill. The purchase consideration was to be discharged by the allotment of 4,000 shares of Rs. 100 each at a premium of 10% and the balance in cash. The cost of liquidation amounted to Rs. 8,000. Show the necessary accounts in the books of both the companies. 15.Explain the history of evolution and development of computers.

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M.B.A. (B & F) DEGREE EXAMINATION, MAY 2010. 12

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Second Semester BANKING LAW AND PRACTICE (2005 onwards) Time : Three hours Maximum : 100 marks PART A (5 8 = 40 marks) Answer any FIVE questions. 1. Write a note on branch banking system in India. 2. What do you know about Bank Charges? 3. What is a letter of introduction? Why is it required at the time of opening a new account? 4. Define a cheque and distinguish it from a bankers cheque. 5. Which form of crossing is the safest and why? 6. Write the advantages of lending against a fixed deposit receipt. 7. What are the requisites of a valid cheque? 8. Write a note on Fixed Deposit. PART B (4 15 = 60 marks) Answer any FOUR questions. 9. Describe the functions of the Reserve Bank of India. 10.Explain the factors determining the cash reserves of banks. 11.State and explain the bankers obligation to honour cheques. What risks he has to face in the case of wrongful dishonour of a cheque? 12.Explain the provisions to be followed while opening accounts in the name of limited companies. 13.Distinguish between a Current Account and savings Bank Account. 14.Define the term holder and holder in due course under the Negotiable Instrument Act.

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15.Explain the advisability of lending by a banker against goods and documents of title to goods.

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M.B.A. DEGREE EXAMINATION, MAY 2010. Second Semester Banking and Finance CENTRAL BANKING AND MONETARY MANAGEMENT (2005 onwards) Time : Three hours Maximum : 100 marks PART A (5 8 = 40 marks) Answer any FIVE questions. All questions carry equal marks. 1. What are the characteristics of Indian money market? 2. Discuss the essential functions of a Central Bank. 3. Describe the processes of credit creation by commercial banks. 4. Explain the principal instruments of monitary policy. What are their limitations? 5. Explain how the Reserve Bank of India manages the exchange control system in our country. 6. How does a Central bank control the volume and direction of credit? 7. What are the monetary and credit control measures recently adopted by the Reserve Bank of India? 8. Discuss the main functions of the RBI relating to credit planning in India. PART B (4 15 = 60 marks) Answer any FOUR questions. All questions carry equal marks.

14

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9. Explain in detail the characteristics a developed money market. What are the shortcomings noticed in the Indian Money Market? 10.Discuss the various functions performed by the Central Bank of India. 11.Explain the role of Central Bank in the economic Development of a country. 12.Discuss the functions of various Department of the Reserve Bank of India. 13.Explain the provisions of RBI Act relating to licensing of banks and regulations over non-banking institutions. 14.Explain how the Bank Rate policy is operated by the Reserve Bank of India. 15.What are the instruments of selective credit control employed by the RBI? Discuss their effectiveness.

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M.B.A. (Banking and Finance) DEGREE EXAMINATION, MAY 2010. Second Semester RURAL BANKING (2005 onwards) Time : Three hours Maximum : 100 marks PART A (5 8 = 40 marks) Answer any FIVE questions. 1. What is the need for rural banking? 2. Explain the various sources of rural finance. 3. State the priority sector lending norms stipulated by the RBI for foreign banks.

15

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4. Explain the direct and indirect financial assistance given to farmers under priority sector lending. 5. Narrate the features of the Bio-gas programme. 6. Discuss in the brief the duties, functions and responsibilities of the Lead Bank Officer. 7. Explain the features of District Credit Plan. 8. Explain the role of KVIC in rural development. PART B (4 15 = 60 marks) Answer any FOUR questions. 9. Explain the functions of co-operative credit institutions. 10.Discuss the problems faced by commercial banks while extending agricultural finance. 11.Evaluate the performance of commercial banks under TRYSEM. 12.Examine the role of commercial banks under the new 20-point Economic programmes. 13.Explain the functions of various committees set up under Lead Bank Scheme to ensure co-ordination. 14.Discuss the different stages involved in the implementation of Service Area Approach. 15.Explain the role played by the NABARD in rural development.

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M.B.A. (Banking and Finance) DEGREE EXAMINATION, MAY 2010. Second Semester BUSINESS ENVIRONMENT

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(2005 onwards) Time : Three hours Maximum : 100 marks SECTION A (5 8 = 40 marks) Answer any FIVE questions. All questions carry equal marks. 1. Explain the nature of business environment. 2. Bring out the relationship between Government and business. 3. Explain the need for government control. 4. Describe the concept of technology transfer. 5. How does economic planning promote economic development? 6. Write a brief note on banking structure in India. 7. Discuss the interface between government and public sector. 8. What are mergers? Distinguish them from acquisitions. SECTION B (4 15 = 60 marks) Answer any FOUR questions. All questions carry equal marks. 9. Explain the factors that affect environment of business. 10.Write a detailed note an socio-economic problems of India. 11.Discuss the salient features of New EXIM Policy. 12.Narrate the relationship between fiscal and monetary systems. 13.Describe the various government policies on small scale industry. 14.State and explain the industrial independence and their implications. policies announcements since

15.What is Privatisation? Narrate the merits and drawbacks of Privatisation.

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DISTANCE EDUCATION M.B.A. (Banking and Finance) DEGREE EXAMINATION, MAY 2010. Third Semester PROJECT FINANCE (2005 onwards) Time : Three hours Maximum : 100 marks SECTION A (5 8 = 40 marks) Answer any FIVE questions. 1. Explain the various aspects of technical appraisal of a project. 2. Explain public deposits as a source of financing a project. 3. As a banker, how do you evaluate managerial skills of the proposed borrower? 4. What is project appraisal? What are its features? 5. How do you evaluate international competitiveness of a project? 6. Discuss the causes for sickness of an industrial unit. 7. Explain the utility of ratio analysis in appraising the project. 8. What type of information is needed for calculation of net present value and internal rate of return? Give an example. SECTION B (4 15 = 60 marks) Answer any FOUR questions. 9. Explain the features of different stages in a project cycle. 10.What do you mean by internal generation of funds? How it is helpful for financing a project? 11.How do you estimate total capital requirements for a project? 12.Explain the significance of appraising the management. 13. How do you evaluate commercial aspects of a project? 14.Emphasize the need for post-sanction supervision and its follow-up. 15.How BIFR is helpful to rehabilitate sick industrial units in India?

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M.B.A. (B &F) DEGREE EXAMINATION, MAY 2010. Third Semester INTERNATIONAL BANKING AND FOREIGN EXCHANGE Time : Three hours Maximum : 100 marks PART A (5 8 = 40 marks) Answer any FIVE questions. 1. Distinguish between Nostro account and Vostro account. 2. What are the causes for fluctuations in exchange rate? 3. Explain the features of unified exchange rate system. 4. What are the objectives of exchange control? 5. Explain the features of letter of credit. 6. What are the salient features of packing credit advances? 7. Write a note on financing turnkey projects. 8. Give a brief account on loan syndication. PART B (4 15 = 60 marks) Answer any FOUR questions. 9. Explain the various functions of foreign exchange department. 10.Explain the significance of spot and forward deals in foreign currencies. 11.Highlight the problems of foreign exchange in India. 12.Explain the focus of Indias recent foreign trade policy. 13.Explain the importance international trade. of various methods of settling debts in

14.Discuss the various support schemes for encouraging exports.

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15.Explain the role of EXIM Bank.

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M.B.A.(B AND F) DEGREE EXAMINATION, MAY 2010. Third Semester MANAGEMENT INFORMATION SYSTEM (2005 onwards) Time : Three hours Maximum : 100 marks PART A (5 8 = 40 marks) Answer any FIVE questions. 1. What is system testing? Explain its advantages. 2. Explain the requirements of management information systems. 3. What are the pre-requisites of an effective MIS? 4. Distinguish MIS and data processing. 5. Explain any one expert system and its use. 6. Explain the concept of video conferencing and its uses. 7. Explain the advantages of client/server computing. 8. What is electronic commerce? Explain its use. PART B (4 15 = 60 marks) Answer any FOUR questions. 9. Explain the concept of system design and development. 20

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10.Discuss the characteristics and structure of MIS. 11.Write notes on (a) (b) Concept of global village and Electronic mail.

12.Discuss the use of computers for developing MIS. 13.Explain local area network and wide area network and its uses. 14.Discuss the concept and advantages of enterprise resource planning system with an example. 15.Explain the method of managing a website.

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M.B.A. (B & F) DEGREE EXAMINATION, MAY 2010. Third Semester COMPUTERS AND BANKING (2005 onwards) Time : Three hours Maximum : 100 marks PART A (5 8 = 40 marks) Answer any FIVE questions. 1. Define computer. Briefly explain the history of computer. 2. Explain the representation of non-numeric data. 3. Write short notes on Peripheral controllers. 4. What is the need of software? 5. Write notes on MICR. 6. Explain Home banking.

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7. What is system software? 8. Explain Inter branch reconciliation. PART B (4 15 = 60 marks) Answer any FOUR questions. 9. Write an essay about the uses of computers. 10.Explain binary and octal number system. 11.Explain programming languages. 12.Explain the benefits of Home banking and EFT. 13.Explain the different types of software. 14.Explain power failures and malicious damage. 15.Explain security considerations.

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M.B.A. (B&F) DEGREE EXAMINATION, MAY 2010. Third Semester QUANTITATIVE METHODS (2005 onwards) Time : Three hours Maximum : 100 marks SECTION A (5 8 = 40 marks) Answer any FIVE questions. All questions carry equal marks. 1. Explain the various type of decision making situations that a manager might encounter. 2. What are the major assumptions of linear programming? 3. What are physical models? Explain its types.

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4. A pair of dice is thrown together and the sum of points of the two dice is noted to be 10. What is the probability that one of the two dice has shown the point 4? 5. What are the applications of simulation? 6. Explain the methods used for decision under risk. 7. Explain utility measures and utility functions in utility theory. 8. What are the laws of probability? Explain its types. SECTION B (4 15 = 60 marks) Answer any FOUR questions. All questions carry equal marks. 9. Calculate the break-even point from the following data: The fixed costs for the year are Rs. 96,000; variable cost per unit of a single product being made is Rs. 4, while each unit sells for Rs. 20. Estimated sales for the year are valued at Rs. 2,00,000. The number of units involved coincides with the expected volume of output. 10.Using graphical method, find the minimum value of Min Z = 3x1 + 10x2 Subject to
15x1 + 4x2 60 8x1 + 8x2 40 4x1 + 16x2 32 and x1 , x2 0.

11.Find the initial basic feasible solution to the given transportation problem by : (a) (b) North-west corner rule. Vogels approximation method. P A B C 5 4 6 Q 7 4 7 R 8 6 7 Suppl y 70 30 50

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Deman 65 d

42

43

12.In connection with a random experiment, it is found that,

P ( A ) = 2 3, P ( B ) = 3 5, P ( A B ) = 5 6

Evaluate the following probabilities. (a) (b) (c)

P /B (A ) P /A (B )

P( A /B)

13.Explain the simulation of an inventory system. 14.The research department of Hindustan Lever has recommended the marketing department to launch a shampoo of three different types. The marketing manager has to decide one of the types of shampoo to be launched under the following estimated pay-off (in millions of Rs.) for various levels of sales.

Estimated level of sale (Units)

Types of Shampoo 15,000

10,000 10 15 20

5,000 10 5 3

Egg Shampoo Clinic Shampoo Deluxe Shampoo

30 40 55

What will be the marketing managers decision if (a) (b) (c) Maximax criterion Maximin criterion Regret criterion is applied.

15.There are two urns containing 5 red and 6 white balls, and 3 red and 7 white balls respectively. If two balls are drawn from the first win without replacement and transferred to the second urn and then a draw of another two balls is made from it, what is the probability that the balls drawn are red?

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DE-8604
DISTANCE EDUCATION M.B.A (B&F) DEGREE EXAMINATION, MAY 2010. Fourth Semester BANK MARKETING (2005 onwards) Time : Three hours

41

Maximum : 100 marks SECTION A (5 8 = 40 marks) Answer any FIVE questions.

1. What do you mean by Bank marketing? What are its components? 2. Explain SWOT analysis. 3. State and explain the different types of users of the banking services. 4. How would you select a suitable location for a bank branch? 5. What does price mean for a bank? How can price be fixed? 6. What do you understand by Customer Relationship Management (CRM) in banks? 7. What are the characteristics of good promotional mix in bank marketing? 8. What are the areas of training programme in Bank marketing? SECTION B (4 15 = 60 marks) Answer any FOUR questions. 9. Discuss the components of marketing information system. 10.Bring out the constraint of product development in banking. 11.Explain the different processes for the development of product in the banking services. 12.Explain the different components of promotion mix that helps you in promoting the banking business.

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13.Explain the strategies to be adopted for bank marketing in rural areas. 14. Discuss the role of price in bank marketing. 15.Write short notes on : (a) (b) (c) Customer meets Public relations Direct marketing

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M.B.A. (B & F) DEGREE EXAMINATION, MAY 2010. Fourth Semester INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT (2005 onwards) Time : Three hours Maximum : 100 marks PART A (5 8 = 40 marks) Answer any FIVE questions. All questions carry equal marks. 1. Explain the primary and subsidiary objectives of investment. 2. Describe systematic and unsystematic risk. 3. State the basic approaches to security analysis. 4. (a) In a portfolio of the company, Rs. 2,00,000 have been invested in asset X which has an expected return of 8.5% Rs. 2,80,000 in asset Y which has an expected return of 10.2% and Rs. 3,20,000 in asset Z which has an expected return of 12%. What is expected return for the portfolio?

(b)

The Elu. Co is contemplating a debenture issue on the following terms : Face value = Rs. 100 per debenture Term to maturity = 7 years Coupon rate of interest : Years 12 = 8% p.a. 26

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3 4 = 12% p.a. 57 = 15% p.a. The current market rate of interest on similar debentures is 15% p.a. The company proposes to price the issue so as to yield a (compounded) return of 16% p.a. to the investors. Determine the issue price. Assume the redemption of debenture at a premium of 5%. 5. State the advantages management. of adopting CAPM model in the portfolio

6. State the modern approach in the construction of the portfolio. 7. Explain the Jensen index of portfolio performance. 8. How does a formula plan aid the investor to invest in a defensive portfolio? PART B (4 15 = 60 marks) Answer any FOUR questions. All questions carry equal marks. 9. Discuss the factors that differentiate the investor from speculator and gambler. 10.Explain the basic valuation model used in investment management. How is it used for valuation of bonds? 11.An investor is contemplating the construction of a portfolio for which he has short-listed two securities X and Y. The expected return and standard deviation of these securities are as follows : Exp. return Security X Security Y 9% 9% St. Deviation 2% 4%

Find out the expected returns and standard deviation of the following portfolios given that the correlation coefficient between X and Y is 1. Security Security X Y 100% 80% 0% 20%

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66% 22% 0%

34% 80% 100%

12.Discuss the scope for index futures in Indian capital market. 13.Explain the capital asset pricing model and its validity in the stock market. 14.Explain the concept of DOW theory. 15.Formula plans help the investor to overcome being emotionally attached to the stock Discuss.

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M.B.A (Banking and Finance) DEGREE EXAMINATION, MAY 2010. Fourth Semester INVESTMENT AND DERIVATIVES MARKETS (2005 Onwards) Time : Three hours Maximum : 100 marks PART A (5 8 = 40 marks) Answer any FIVE questions. 1. State the nature of Debt instruments. 2. How would you immunize the bond portfolio using the immunization technique? 3. Explain about the Bond swaps. 4. What are the factors that have to be taken into account when pricing a new issue of shares? 5. What are the factors affecting the call premium?

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6. Why is an interest rate swap simpler to a future (or forward) contract? 7. Explain the importance of the futures markets. 8. How does a futures contract differ from a forward contract? PART B (4 15 = 60 marks) Answer any FOUR questions. 9. Explain the features of Debt market in India. 10.What is meant by duration? Explain the relationship between duration and price change. 11.Explain the nature and features of equity investment. 12.Discuss the main advantages and disadvantages to a company of raising finance by issuing the ordinary shares. 13.Describe the various Equity Valuation Models. 14.What is options market? Enumerate the options market concept in India. 15.Explain the significance of Government Securities Market and State the Instruments of Government securities market.

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M.B.A. DEGREE EXAMINATION, MAY 2010. Fourth Semester Banking and Finance MUTUAL FUND MANAGEMENT (2005 onwards) Time : Three hours Maximum : 100 marks PART A (5 8 = 40 marks) Answer any FIVE questions. 29

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1. Distinguish between Open Ended Scheme and Close ended schemes. 2. What documents do mutual fund managers produce? 3. What is difference between growth fund and dividend fund? 4. What is the job of a mutual fund manager? 5. What does the expense ratio of an investment fund mean? 6. State the relationship between the pricing f units and NAV. 7. Systematic Investment Plans (SIPs) is a good avenue for risk reduction. Explain. 8. What the objectives of UTI? PART B (4 15 = 60 marks) Answer any FOUR questions. 9. Discuss the merits and demerits of investing in mutual funds. 10.Describe the recent trends and developments in mutual fund industry in India. 11.Explain the role of SEBI is regulating mutual funds in India. 12.Describe the functions of Asset Management Company. 13.Explain Investment strategies usually followed by a mutual fund. 14.Discuss the various parameters which provide information about the performance of a mutual fund. 15.Explain the investment pattern of UTI.

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M.B.A. (Banking and Finance) DEGREE EXAMINATION, MAY 2010. Fourth Semester MERCHANT BANKING

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(2005 onwards) Time : Three hours Maximum : 100 marks PART A (5 8 = 40 marks) Answer any FIVE questions. 1. Who are the four categories of merchant bankers? 2. Explain the features of corporate counselling. 3. Enumerate the various types of corporate securities. 4. What are the uses of underwriting? 5. Explain the meanings of Bridge Loans. State its features. 6. Define Merger. What are its types? 7. What is Venture Capital? Explain its importance. 8. List out the advantages of Mutual Fund. PART B (4 15 = 60 marks) Answer any FOUR questions. 9. Discuss the role of SEBI in regulating merchant banking industry. 10.What is Loan Syndication? State and explain its steps. 11.How are pre-issue activities of capital managed? 12.State and explain the essential requirements for listing securities in a stock exchange. 13.Explain the functions of portfolio managers. 14.What is CAPM? Discuss its approach to market operations. 15.Define Factoring. Explain the steps involved in the factoring mechanism.

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