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Hcp:Money And Banking Question Paper

Hcp:Money And Banking

Course:Bachelor Of Supplies Management

Institution: Meru University Of Science And Technology question papers

Exam Year:2010

QUESTION ONE (30 MARKS)
a) Describe the main functions of money. (8 marks) b) The evolution of money started long time ago with the application of Barter trade until the current use of money: i) Explain the reasons why barter system of transaction failed. (6 marks) ii) Outline the reasons why money was accepted as the better mode of transacting. (6 marks) c) Describe the different types of inflations that can occur in the economy of any country. (5 marks) d) Outline the major causes of inflation. (5 marks)
QUESTION TWO (20 MARKS)
a) Describe the various monetary systems that have been applied by different states worldwide. (7 marks) b) With aid of an illustration describe the quantity theory of money. (7 marks) c) Critically examine the limitations of the quantity theory of money. (6 marks)
QUESTION THREE (20 MARKS)
a) Define the various measures that the Central Bank of Kenya can take to control credits in the country. (10 marks) b) With examples, distinguish between monetary policy and Fiscal policy. (4 marks)
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c) Explain the role of Nairobi Securities Exchange in the economic development of Kenya. (6 marks)
QUESTION FOUR (20 MARKS)
a) Explain the factors that can hinder Commercial Banks from creating credits in the economy. (10 marks) b) Describe the major functions of Commercial Banks in Kenyan economy. (10 marks)

Hcp:Money And Banking Question Paper

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