Master of Business Administration (MBA) Examination

III Semester

(Financial Systems and Services)

Time : 3 Hours]                                                                                               [Max. Marks : 80

Section A

1.         Explain the meaning of 'capital market' and `money market'. Compare and contrast these two markets.

2.         Discuss the role of Stock Exchange in the economic development and growth.

3.         Consider any three credit cards and compare the additional facilities that each of these cards offer to their customers besides credit.

4.         Discuss the problems faced by the providers of financial services in In-dia.

5.         Write short notes on any four:

(a)        Zero coupon bonds

(b)        Typology of Credit Rating

(c)        Role of National Housing Bank in housing finance

(d)       Floating Rate Bonds

(e)        Global Depository Receipts

Section B

The Hypothetical Equipment Ltd. (HEL) has recently leased assets worth Rs. 2,500 lakh from the Hypothetical Leasing Ltd. (FILL). The following facts are available :

(1)        Lease period, 9 years, of which the first 6 years constitute the lease term

(2)        Annual lease rates : First 6 years, Rs. 360/Rs. 1,000; Next 3 years, Rs. 15/Rs. 1,000;

(3)        Incremental borrowing rates for HEL, 22 per cent.

(a)        Assuming 14 years as the average economic life of the equipment, is the lease a finance lease or an operating lease.

(b)        Assuming further (i) Physical life of 14 years, (ii) technological life of 9 years and (iii) product-market life of 11 years, how will you classify the lease?