Money And Banking Question Paper
Money And Banking
Course:Bachelor Of Commerce (Commerce)
Institution: Kabarak University question papers
Exam Year:2008
KABARAK
UNIVERSITY
EXAMINATIONS
2008/2009 ACADEMIC YEAR
FOR THE DEGREE OF BACHELOR OF COMMERCE
COURSE CODE: ECON 313/FNCE 313
COURSE TITLE: MONEY AND BANKING
STREAM: Y3S1
DAY: TUESDAY
TIME: 2.00-4.00
P.M.
DATE: 16/12/2008
INSTRUCTIONS:
Answer questions one and any other two questions
Write your registration number clearly, be neat, brief and to the point.
PLEASE TURN OVER
Page 1 of 2
Question 1 (Total marks 30)
i. Give a critical definition of the term money.
6
marks
ii. Discuss the History of Money from Ancient Times to the Present Day.
4 marks
iii. Describe any 6 functions of money
6
marks
iv. In respect to the “right amount of money” in circulation in any given contemporary economy give a critical
view on the supply of money process.
8 marks
v. Discuss any 3 limitations to the supply of money.
6 marks
Question 2 (Total marks 20)
i. In respect to the Keynesian approach, discuss the 3 main reasons for demanding money.
8 marks
ii. Give a brief description of a contemporary global system under the following:
History
2 Marks
Institutions
2 Marks
Government institutions
2 Marks
Private participants
2 Marks
Perspectives
4 Marks
Question 3 (Total marks 20)
i. Give an historical perspective of the Kenyan Financial system.
10 marks
ii. Describe any 5 functions of a central bank in a free market economy like the Kenyan.
10 marks
Question 4 (Total marks 20)
i. Deposit Insurance Funds do more “harm than good” in a contemporary financial system. Discuss. 10 marks
ii. Discuss the effects of the disclosure requirements on the operation of financial institutions.
10 marks
Question 5 (Total marks 20)
i. Discuss any 5 roles of commercial banks in any modern financial system
10 marks
ii. Describe any 5 major instruments of monetary policy used by the central bank
10 marks
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