Explain how the Solow model differs from the Harrod-Domar model. Which of the two do you think is more relevant in describing the development process of developing nations?

What is 'deficit financing'? Explain how is it met?

Distinguish between collective decision making and individual decision making? Explain with examples how individual decision making is a case of general equilibrium?

 How does quantity of public goods and its distribution to the consumers is determined? Explain the Samuelson's pure theory of public expenditure in this regard.

What is market failure? What kinds of state intervention are required to address the problem of externality and imperfect information?

 What do you mean by the term "stabilization"? Explain the role of various instruments of fiscal policy to achieve the objectives of low unemployment and price stability?

 Distinguish between equity and equality? Critically examine the Rawal's theory and Nosick's theory of justice in this regard.

Swaps

 Efficient Market Hypothesis

 Instruments of Monetary policy

Call option and Put option

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.

How are bonds valued?

 What is yield to maturity? How do we calculate the expected stream of cash flows arising from bonds?

 Explain monetary policy transmission mechanism. What are its different forms? Is it important for the success of monetary policy?

What are the key points of Markowitz's portfolio theory? Discuss some of its limitations.

 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.

 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.

 Lagrange-Multiplier (LM) Test

Why is the OLS method inappropriate when a dataset is having heteroscedasticity problem? Explain the White's Test to detect heteroscedasticity in a data set.