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DRIVE SPRING 2017
PROGRAM BBA
SEMESTER I
SUBJECT
CODE & NAME BBA 108-BUSINESS ENVIRONMENT
Set 1
1 Explain the
different instruments of Monetary Policies?
General or quantitative controls
Selective or qualitative controls
Answer: Instruments of
monetary policy
There
are various methods and instruments which the Reserve Bank uses. Some are
general or quantitative methods which control and adjust the total quantity or
size or volume of deposits created by the commercial banks. There are others
known as selective or qualitative controls as they control certain types of
credits. The former controls the volume (stock) of money and credit, while the
latter controls the availability (flow) of money and credit.
General
or quantitative controls
These
are the controls that relate to the volume and cost of bank credit in general
without regard to the particular economic activity for which the credit is
used. There are three instruments in this
2 Discuss the
merits and demerits of Mixed economy.
Merits
Demerits
Answer: Merits
of a mixed economy
a)
Economic and political freedom
It
provides enough scope for private enterprise. Freedom of choice of occupation
exists. People are free to save and invest. Consumers are free to choose the
goods and services they want to consume. A mixed economy provides adequate
civil, political, and economic freedom to the people, subject
3 Write a note
on the three pillars of free economy namely liberalization, privatization and
globalization.
Liberalization
Privatization
Globalization
Answer: An ideal free
and open economy is based on three principles which are as follows:
Liberalization:
The process of liberating the economy from
governmental regulations and control is known as Liberalization. This results
in greater freedom for private enterprise that leads to
Set 2
1 Explain
positive and negative effects of New Economic Policy?
Positive Effects
Negative Effects
Answer: Positive
effects of New Economic Policy
Ø Economic
activities have picked up and the growth rate of GDP has shown an impressive
increase.
Ø Stimulated
increase in industrial production.
Ø Significant
increase in government revenues and subsequent reduction in fiscal deficit.
Ø Greater
flow of
Ø
2
Differentiate GATT and WTO.
Explain GATT
Explain WTO
Answer: Members of all
the trading blocs and agreements are also part of the World Trade Organization,
more popularly known as WTO. WTO is now the only globally recognized trade
organization that deals with the rules of trade between nations. It administers
the rule of law in international trade. It came into existence on January1,
1995, which took the place of GATT (General
3 Write short
notes on the following:
a. Functional
co-operatives
b. Multipurpose
co-operatives
Functional co-operatives
Multipurpose co-operatives
Answer: Co-operative Sector has a
very important role in the development of many other sectors. The Co-operative
sector includes agriculture, retail distribution, housing, rural and small
scale industry etc.
The important
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