BBA50112_Module I_Practice Set
Long Answer Type Questions (for 5 marks)
1. Explain the role of the financial system in mobilizing savings with suitable examples.
2. Differentiate between the formal and informal financial sectors in India with examples.
3. Describe the functions of Development Financial Institutions (DFIs) in India.
4. What is financial dualism? Explain its significance in the Indian context.
5. Discuss any four key challenges faced by the structure of Indian financial
intermediaries.
6. Explain how the financial system facilitates economic development through efficient
resource allocation.
7. Describe the role of the Reserve Bank of India (RBI) as a regulator of the financial
system.
8. Discuss the major financial sector reforms introduced in India since 1991.
9. Explain the importance of financial inclusion in promoting economic development.
10. Compare the key features of bank-based and market-based financial systems.
Short Answer Type Questions (for 3 marks)
1. Define the term “financial system” and state its main purpose.
2. List any three functions of a financial system.
3. Name two regulators of the formal financial sector in India.
4. Give two examples each of formal and informal financial intermediaries.
5. State any three roles of financial intermediaries in the economy.
6. Mention three recent developments in Indian financial intermediaries.
7. Write any three key roles of SEBI in the Indian financial system.
8. List three weaknesses of the Indian financial sector before 1991 reforms.
9. State any three key elements of a well-functioning financial system.
10. Name three types of banks under the Scheduled Commercial Banks category.