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75409
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d)
c)
a)
b)
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BC 0C 30 EA F 8F 2C 57 A 96 83 803 C5 C C7 30E AB FC 8F2 CF

Bank.
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system.
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0E B C F2 F5 7F 29 63 38 3C B 0C 73 EA BF 8 2C 5 FA 96

example.
AB FC 8F2 CF 7F A2 63 838 03C 5B C0 73 0E B C8 F2 F5 7FA 29 38
FC 8F2 CF 57F A2 963 838 03 5B C0 C73 0E AB FC8 F2 CF5 7F 29 638 380
8F CF 57 A2 96 83 03 C5B C0 C7 0E AB FC F2 CF 7F A2 63 38 3C
2C 57 FA 96 383 80 C5 C C7 30 AB FC 8F CF 57 A2 963 83 03 5B
F5 FA 29 38 80 3C BC 0C 30 EA F 8F 2C 57 FA 96 83 803 C5 C
Time : 3 Hours

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A2 63 83 03 5B C0 7 0E B C F2 F5 7F 29 63 38 3C B 0C 73
96 83 803 C5 C0 C7 30E AB FC 8F2 CF 7F A2 63 838 03C 5B C0 73 0EA
38 80 C5 BC C 30 A FC 8F C 57 A 96 83 03 5 C0 C7 0E B

exchange rate system?


38 3C B 0C 73 EA BF 8 2C F5 FA 29 38 80 C5 BC C 30 A FC

Write notes. (Any two)


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C5 C C7 30 AB FC 8F CF 7F A2 63 83 03 5B C0 7 0E B C F2
BC 0C 30 EA F 8F 2C 57 A 96 83 803 C5 C C7 30E AB FC 8F2 CF
0C 730 EA BF C8F 2C F57 FA 296 383 803 C5 BC 0C7 30E AB FC 8F2 CF 57F

Internal and external balance


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0E B C F2 F5 7F 29 63 38 3C B 0C 73 EA BF 8 2C 5 FA 96
AB FC 8F2 CF 7F A2 63 838 03C 5B C0 73 0E B C8 F2 F5 7FA 29 38
FC 8F2 CF 57F A2 963 838 03 5B C0 C73 0E AB FC8 F2 CF5 7F 29 638 380

b) Explain uncovered interest parity.

Answer any Two of the following


Answer any Two of the following
Answer any Two of the following
Answer any Two of the following

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Asian Infrastructure Investment Bank


a) Derive LM curve in an open economy.
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96 83 803 C5 C0 C7 30E AB FC 8F2 CF 7F A2 63 838 03C 5B C0 73 0EA

Page 1 of 2
38 80 C5 BC C 30 A FC 8F C 57 A 96 83 03 5 C0 C7 0E B
38 3C B 0C 73 EA BF 8 2C F5 FA 29 38 80 C5 BC C 30 A FC

Determinants of import and export functions


03 5B C0 7 0E B C F2 F5 7F 29 63 38 3C B 0C 73 EA BF 8
C5 C C7 30 AB FC 8F CF 7F A2 63 83 03 5B C0 7 0E B C F2
Instructions: 1) All questions are compulsory.

BC 0C 30 EA F 8F 2C 57 A 96 83 803 C5 C C7 30E AB FC 8F2 CF

Measures to control foreign exchange rate crisis

________________
c) Discuss the consequences of exchange rate crisis.
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73 EA BF C8 2C F5 FA 29 38 80 C5 BC 0C 30 A FC 8F CF 57 A2
0E B C F2 F5 7F 29 63 38 3C B 0C 73 EA BF 8 2C 5 FA 96
AB FC 8F2 CF 7F A2 63 838 03C 5B C0 73 0E B C8 F2 F5 7FA 29 38
FC 8F2 CF 57F A2 963 838 03 5B C0 C73 0E AB FC8 F2 CF5 7F 29 638 380
8F CF 57 A2 96 83 03 C5B C0 C7 0E AB FC F2 CF 7F A2 63 38 3C

C8F2CF57FA296383803C5BC0C730EABF
2) Figures to the right indicate full marks.

under flexible exchange rate and perfect capital mobility.

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F5 FA 29 38 80 3C BC 0C 30 EA F 8F 2C 57 FA 96 83 803 C5 C
3) Draw neat diagrams wherever necessary.

7F 29 63 38 3C 5B 0C 73 EA BF C8 2C F5 FA 29 38 80 C5 BC 0C
A2 63 83 03 5B C0 7 0E B C F2 F5 7F 29 63 38 3C B 0C 73

b) Discuss the global financial crisis and its impact on euro area.
96 83 803 C5 C0 C7 30E AB FC 8F2 CF 7F A2 63 838 03C 5B C0 73 0EA
38 80 C5 BC C 30 A FC 8F C 57 A 96 83 03 5 C0 C7 0E B
38 3C B 0C 73 EA BF 8 2C F5 FA 29 38 80 C5 BC C 30 A FC
b) Discuss the effects of changes in foreign demand on trade balance.

03 5B C0 7 0E B C F2 F5 7F 29 63 38 3C B 0C 73 EA BF 8
C5 C C7 30 AB FC 8F CF 7F A2 63 83 03 5B C0 7 0E B C F2
BC 0C 30 EA F 8F 2C 57 A 96 83 803 C5 C C7 30E AB FC 8F2 CF
0C 730 EA BF C8F 2C F57 FA 296 383 803 C5 BC 0C7 30E AB FC 8F2 CF 57F
a) Explain merits and demerits of managed flexible exchange rate system.
Paper / Subject Code: 86505 / Economics: Macroeconomics - III

73 EA BF C8 2C F5 FA 29 38 80 C5 BC 0C 30 A FC 8F CF 57 A2
0E B C F2 F5 7F 29 63 38 3C B 0C 73 EA BF 8 2C 5 FA 96
c) Explain how monetary policy is ineffective under fixed exchange rate
a) Distinguish between nominal and real exchange rate with help of an

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2C 57 FA 96 383 80 C5 C C7 30 AB FC 8F CF 57 A2 963 83
b) How equilibrium in the balance of payments is maintained under flexible

c) Explain objectives, membership and capital structure of New Development


F5 FA 29 38 80 3C BC 0C 30 EA F 8F 2C 57 FA 96 83 803
a) Explain meaning of gold standard. What are the causes of failure of gold standard?
Total Marks: 100

c) Explain the effectiveness of monetary policy with help of Mundell-Fleming model

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38 80 C5 BC C 30 A FC 8F C 57 A 96 83 03 5

20
20
20
20
20

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03 5B C0 7 0E B C F2 F5 7F 29 63 38 3C B
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0E B C F2 F5 7F 29 63 38 3C B 0C
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3 3 7 E B 2 F
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1-

5-
4-
3-
2-
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6 5 C F 2
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38 380 3C5 BC 0C 730 EA BFC 8F 2C F57 FA 296 383 803 C5 BC0
3 7 B F F 2 3 B

75409





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3 7 E B 2 F 3 8 3
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38 80 C5 BC C 30 A FC 8F C 57 A 96 83 03 5 C0 C7 0E B
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Page 2 of 2
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_______________________
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0E B C F2 F5 7F 29 63 38 3C B 0C 73 EA BF 8 2C 5 FA 96
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Paper / Subject Code: 86505 / Economics: Macroeconomics - III

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20
20
20
20
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73 EA BF C8 2C F5 FA 29 38 80 C5 BC 0C
0E B C F2 F5 7F 29 63 38 3C B 0C
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