Cfm 305: Treasury Management Question Paper
Cfm 305: Treasury Management
Course:Bachelor Of Commerce
Institution: Kca University question papers
Exam Year:2009
1
UNIVERSITY EXAMINATIONS: 2008/2009
THIRD YEAR STAGE II EXAMINATION FOR THE DEGREE OF
BACHELOR OF COMMERCE
CFM 305: TREASURY MANAGEMENT
DATE: APRIL 2009 TIME: 2 HOURS
INSTRUCTIONS: Answer question ONE and any other TWO questions
QUESTION ONE
a) Explain in detail how an increase in government borrowing will influence The Money Market.
(15 Marks)
b) What different techniques are available to the monetary authorities when seeking to control the
money supply? Assess critically the effectiveness of each type of control. (15 Marks)
QUESTION TWO
a) What are the main economic advantages and disadvantages of a rising exchange rate? (10 Marks)
b) What are the advantages of keeping a stable exchange rate? (10 Marks)
QUESTION THREE
What does the term liquidity mean in relation to :
a) An individual (10 Marks)
b) A bank (10 Marks)
2
QUESTION FOUR
To what extent does the Central Bank of Kenya now attempt to influence the general level of interest
rates? In clued in your answer an analysis of the Central Bank of Kenya’s operations in the market.
(20 Marks)
QUESTION FIVE
In times of increasing competitive pressure and more internationalized markets, efficient financial
management is a key element of success. Discuss. (20 Marks)
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