Money And Banking Question Paper
Money And Banking
Course:Bachelor Of Science (Economics)
Institution: Kabarak University question papers
Exam Year:2008
KABARAK
UNIVERSITY
UNIVERSITY EXAMINATIONS
2008/2009 ACADEMIC YEAR
FOR THE DEGREE OF BACHELOR OF SCIENCE IN
ECONOMICS & MATHEMATICS & BACHELOR OF
COMMERCE
COURSE CODE: ECON 313
COURSE TITLE: MONEY AND BANKING
STREAM: Y3S1
DAY: TUESDAY
TIME:
8.30
–
10.30
A.M.
DATE: 5/8/2008
INSTRUCTIONS:
1. Answer QUESTION ONE and any other TWO questions.
2.
Write your registration number clearly, be neat and precise.
PLEASE TURN OVER
Page 1 of 2
QUESTION ONE
(i)
Give a critical analysis of the evolution of money from Ancient money to E-
money era.
(6mks)
(ii)
Describe any 5 roles of any Central Banking operating in a free market economy.
(10mks)
(iii)
Money has been classified differently by various scholars. Discuss the
classification according to John Maynard Keynes.
(10mks)
(iv) Explain any 4 functions of money
(4mks)
QUESTION TWO
(i)
Discuss the historical perspective of the Eastern African Central Banking System
(10mks)
(ii)
Give a brief description on each of the following;
(a) Money
market
(b)
Capital market and explain how they can be used monetary policy
implantation.
(10mks)
QUESTION THREE
(i)
Discuss 4 roles of the Kenyan Deposit Protection (Insurance) Fund.
(10mks)
(ii)
Describe the creation of commercial bank money in any modern financial system
(10mks)
QUESTION FOUR
(i)
In respect to the Keynesian approach, discuss any 3 reason for the demanding
money.
(8mks)
(ii)
“Bad” money drives away good money out of circulation. Discuss this statement.
(6mks)
(iii)
Discuss the effects of the disclosure requirements on the operation of financial
institutions.
(6mks)
QUESTION FIVE
Give an historical perspective of the Kenyan Financial system.
(20mks)
Page 2 of 2
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