Buss 322: Money Banking And Finance Question Paper
Buss 322: Money Banking And Finance
Course:Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2010
FACULTY : BUSINESS AND MANAGEMENT STUDIES
DEPARTMENT : BUSINESS ADMINISTRATION
TIME : 2 HOURS
INSTRUCTIONS Answer Question ONE (compulsory and any Other TWO Questions
QUESTION 1
a) Distinguish between money, money substitutes and near money (6marks)
b) Discuss the role played by monetary policy in the Kenyan economy (10marks)
c) Discuss the role of commercial bank in the economy (10marks)
d) Define liquidity preference and explain its motives (4marks)
QUESTION 2
a) Define “barter system” and explain any five difficulties associated with it. Explain any five strengths of barter system. (11marks)
b) Define credit creation and discuss the monetary policy instruments used by central bank to control it. (9marks)
QUESTION 3
a) Discuss the evolution and development of money and explain its functions in business transactions (12marks)
b) Define non-banking financial intermediaries and explain their role in the economy of a country (8marks)
QUESTION 4
a) Differentiate between money market and capital market and discuss the linkages between the two (12marks)
(b) “Nairobi Stock Exchange (NSE) is playing an important role in the Kenyan economy”. Discuss (8marks)
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