MECE-004 Solved Assignment 2018-19
MECE-004: FINANCIAL INSTITUTIONS AND MARKETS
Course Code: MECE-004
Assignment Code: MECE-004/AST/2018-19
Maximum Marks: 100
|Title Name||MECE-004 Solved Assignment 2018-19|
|Service Type||Solved Assignment (Soft copy/PDF)|
|Semester||2018-2019 Course: MA(Economics)|
|Short Name||MECE-004 (ENGLISH)|
|Product||Assignment of MA(Economics) 2018-2019 (IGNOU)|
|Submission Date||before March 31th, 2019 for the session July, 2018 and|
before September 30th, 2019 for the session January 2019
Answer all the questions
1. Describe the nature of the financial system in a modern economy giving the important types
of constituent institutions, markets and instruments. Explain the concept of flow-of-funds in
the financial markets
2. Discuss the Markowitz theory of efficient portfolio selection. How does the Capital Asset
Pricing Theory (CAPM) theory build on it?
3. Explain the Arbitrage Pricing Theory.
4. Explain the need for, and role of depository systems in secondary markets. Explain the
concept of custodial services.
5. Give a theoretical model of central banking, bringing out the relationship between the
monetary base and monetary aggregates. What are instruments of monetary policy used by
6. Compare the impact of monetary policy under fixed exchange rates with those under
flexible exchange rates.
7. Discuss the concept of leverage for a firm. Discuss the important financial and leverage
ratios used. Explain the Merton-Miller theorem.