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(a) State any two functions of the financial system in any economy. (b) What is credit risk? (e) What is high powered money? (4)

(a) State any two functions of the financial system in any economy. (b) What is credit risk? (e) What is high powered money? (4) Distinguish between primary and secondary market. (e) What is risk premium? (f) What is Credit Rating Agency? (g) What is IPO? (h) What do you mean by Yield to Maturity? (i) Demonetisation acts as a liquidity shock in the economy. Explain. Mention any two measures adopted by RBI in order to control inflation. (k) What are doubtful assets? (1) State two objectives of implementing financial sector reforms in India. (m) What is Market Stabilisation Scheme (MSS)? page 255

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