Msf 504 Town Triza Question Paper
Msf 504 Town Triza
Course:Masters Of Science In Commerce
Institution: Kca University question papers
Exam Year:2014
UNIVERSITY EXAMINATIONS: 2013/2014
EXAMINATION FOR THE MASTERS OF SCIENCE (MSC) IN COMMERCE
(FINANCE AND INVESTMENT)
MSF 504 MONEY AND BANKING TOWN CAMPUS
DATE: AUGUST, 2014
TIME: 3 HOURS
INSTRUCTIONS: Answer Question One and Any Other Three Questions
QUESTION ONE (31 MARKS)
a)
The financial sector is the engine that drives economic growth through efficient allocation of
resources to productive units. A stable and efficient financial system underpins intermediation
process for economic growth and development. Discuss the role of financial intermediaries in
economic growth, savings and investment process.
b)
(21 Marks)
State and explain four functions of Banks (10 Marks)
QUESTION TWO (23 MARKS)
a)
The main determinants of money supply are monetary base and money multiplier .Explain
three factors which influence these two variables.
b)
(15 Marks)
State and explain three factors that have contributed to improvements in the Kenyan banking
system.
(8 Marks)
QUESTION THREE (23 MARKS)
a)
Central Bank of Kenya oversees the robust and systematic supervision of commercial banks
and non bank financial institutions among other functions. Discuss the role of Central Bank in
regulating economic stability in the country.
(18 Marks)
1
b)
List and explain three reasons for international banking.
(5 Marks)
QUESTION FOUR (23 MARKS)
Monetary policy is the process by which the Central Bank influences the quantity, cost and availability
of money supply and credit in the economy in order to minimize excessive price fluctuations, and
promote economic growth. Discuss the specific economic variables which guide the working of the
Monetary policy.
QUESTION FIVE (23 MARKS)
(a)
Economic growth in a modern economy hinges on an efficient financial sector that pools
domestic savings and mobilizes foreign capital for productive investments. Discuss this
statement.
(b)
(14 Marks)
Banking transactions across national boundaries are exposed to various risks. State and explain
four such risks.
(9 Marks)
QUESTION SIX (23 MARKS)
(a) Explain three key roles of a Capital Market Regulator in your country.
(8 Marks)
(b) Outline five factors that contribute to slow growth of capital markets in emerging economies.
(15 Marks)
2
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