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Eco 216: Economics Of Money And Banking Question Paper

Eco 216: Economics Of Money And Banking

Course:Bachelor Of Business Management

Institution: Moi University question papers

Exam Year:2016

MOI UNIVERSITY
BACHELOR OF ARTS (ECONOMICS)
SECOND YEAR, SECOND SEMESTER EXAMINATION, 2015/2016
ECO 216: ECONOMICS OF MONEY AND BANKING
TIME: 3 HOURS
INSTRUCTIONS TO CANDIDATES:
Answer Question one any other three questions
QUESTION ONE
a) Distinguish between money, near money, and money substitutes. (6 marks)
b) Give a critical analysis of the evolution of money from to E-money. (7 marks)
c) Briefly describe Money market and explain how they can be used in monetary policy implementation. (6 marks)
d) Discuss the economic impact of increased supply of money in an economy. (6 marks)
(Total 25 marks)
QUESTION TWO
a) Briefly explain the “monetary policy”. Critically examine the objective of monetary policy in a developing economy. (9 marks)
b) Explain the factors that limit the effective use of monetary policy in developing countries. (6 marks) (Total 15 marks)
QUESTION THREE
a) Explain the role of central bank and how it influences the performance of the country’s economy (10 marks)
b) “Bad” money drives away good money out of circulation. Discuss this statement. (5 marks)
(Total 15 marks)
QUESTION FOUR
a) Outline the major differences between quantity and Keynesian liquidity preference theories of money demand. (9 marks)
b) In respect to the Keynesian approach, discuss any THREE reasons for demanding Money. (6 marks) (Total 15 marks)
QUESTION FIVE
a) Describe the credit creation by commercial bank. Explain the limitations of credit creation by these banks. (9 marks)
b) Discuss the effects of the disclosure requirements on the operation of financial institutions. (6 marks) (Total 15 marks)

Eco 216: Economics Of Money And Banking Question Paper

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