MEC-110 EM 2025-26 SOLVED ASSIGNMENT

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MEC 110: MONEY, FINANCIAL INSTITUTIONS AND MARKETS

Tutor Marked Assignments

Course Code: MEC- 110

Assignment Code: Asst /TMA /2025-26

MASTER OF ARTS
(ECONOMICS)
ASSIGNMENTS 2025-26
Third Semester Courses
(For July 2025 and January 2026 Sessions)

Total Marks: 100

Section-A Answer the following questions in about 700 words each. Each question carries 20 marks. 2X20=40

1. Provide a comprehensive analysis of India’s financial system. Critically examine the rationale behind regulating financial institutions in India. Support your answer with recent examples or cases which have highlighted the need for regulating or not regulating the financial institutions.
2. Critically examine the Capital Asset Pricing Model (CAPM). How does it contribute to investment decision-making and financial market efficiency? Illustrate your answer with some applications of CAPM in real-world scenario.

Section B Answer the following questions in about 400 words each. Each question carries 12marks. 5X12=60 .

3. What are the key points of Markowitz’s portfolio theory? Discuss some of its limitations.
4. Explain monetary policy transmission mechanism. What are its different forms? Is it important for the success of monetary policy?
5. What is yield to maturity? How do we calculate the expected stream of cash flows arising from bonds?
6. a) How are bonds valued?
7. b) A bond with a face value of ₹ 5,000 matures at the end of 5 years, the rate of interest on the bond being 15% p.a. paid annually. Find the value of the bond to yield a return of 10% p.a. Further, if the bond is trading at ₹ 6,000, then is it worth buying it? Assume that the bond will be redeemed at par.
8. Write short notes on following:
9. a) Call option and Put option
10. b) Instruments of Monetary policy
11. c) Efficient Market Hypothesis
12. d) Swaps