BBA108-BUSINESS ENVIRONMENT

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DRIVE SPRING 2017

PROGRAM BBA

SEMESTER I

SUBJECT CODE & NAME

BBA108-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.

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