BECE-144 · December 2024 · English
IGNOU BECE-144 December 2024 Previous Year Question Paper
FINANCIAL ECONOMICS
Structured previous year question paper for BECE-144, December 2024 session.
Max marks: 100 · Questions: 15 · Sections: 3
Verified: 5 Aug 2026
B. A. (HONOURS) ECONOMICS
(BAECH)
Term-End Examination
December, 2024
BECE-144 : FINANCIAL ECONOMICS
Time : 3 Hours Maximum Marks : 100
Note: Answer questions as per the instructions
given in each Section.
Section—A
Note : Answer any two questions from this Section.
2x20=40
Q1.What do you understand by the term ‘financial instruments’ ? What role do they play in a modern economy ?
Q2.Discuss the conceptual framework of Markowitz model. How does prospect theory explain the variability in the investor behaviour ?
Q3.How is a derivative different from a share ?
Q4.Discuss the pricing mechanism of ‘options’ and ‘swaps’.
Q5.What are financial markets ? Explain their features and discuss the role financial markets play in the economy.
Section—B
Note : Attempt any four questions from this
Section. 4x12=48
Q6.How are the financial institutions regulated ?
Q7.Discuss such regulations.
Q8.Discuss the various types of errors that may be present in a sampled data.
Q9.What do you understand by ‘bond yield’ ?
Q10.State how yield to maturity of a bond is computed.
Q11.Explain the concept of ‘Present Value’. Discuss how present value of an infinite series of cash flows is calculated.
Q12.Discuss the ‘discounted utility model’. How can this model be extended to choice under uncertainty ?
Q13.Describe the various sources of financing for a corporate firm.
Section—C
Note : Attempt all questions from this Section.
2x6=12
Q14.Explain the following :
(a) Ellsberg Paradox
(b) Holding period return
Q15.Differentiate between the following :
(a) Money market and Capital market
(b) Disposition effect and Endowment effect 2x20=40 4212-48 2x6=12