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Bcf 307: Monetary Theory And Practice Question Paper

Bcf 307: Monetary Theory And Practice

Course:Bachelor Of Commerce

Institution: Kaimosi Friends University College question papers

Exam Year:2017

KAIMOSI FRIENDS UNIVERSITY COLLEGE
( A Constituent College of Masinde Muliro University of Science and Technology

UNIVERSITY EXAMINATIONS
2017/2018 ACADEMIC YEAR

THIRD YEAR FIRST SEMESTER EXAMINATIONS

MAIN EXAMINATION

FOR THE DEGREE OF BACHELOR OF COMMERCE

COURSE CODE: BCF 307
COURSE TITLE: MONETARY THEORY AND PRACTICE

DATE: 19 TH DECEMBER,2017
TIME: 2-4 PM

INSTRUCTIONS TO CANDIDATES

Answer Question ONE and ANY other TWO questions
Do not write on this question paper

QUESTION ONE. 30 marks

a).Money can be anything acceptable in the payment of goods and services and discharge of obligations,enumerate the qualities of money. 4 marks

b). What are the disadvantages of paper money. 3 marks

c). Central Bank can be Said to be the apex banking and financial institution in a country,highlight the functions of commercial banks. 6 marks

d). Distinguish between credit multiplier and cash reserve ratio. 4 marks
e). Distinguish between money market and capital market.
3 marks
f).The money Market is a market for short term credit and liquid financial instruments,highlight the services offered by Money market 6 marks
g). Distinguish between direct finance and indirect finance. 4 marks

QUESTION TWO. 20 marks

a) Discuss the functions of money in an economy. 10 marks

b). Describe the following financial institutions. 10marks

i.Depository institutions
ii.insurance companies
iii.pension funds
iv.security firms
V.finance companies

QUESTION THREE. 20 marks
a) Distinguish between the quantity theory of money and Keynesian view point. 5 marks

b). Define the term monetory policy and discuss the objectives of Monetary. 5 marks

c) Discuss the limitations of Monetary policies in developing countries. 10 marks

QUESTION FOUR. 20marks

a) Describe a financial. Instrument and highlight the uses of financial instruments. 5marks

b) Describe the core principles of money and banking. 5 marks

QUESTION FIVE. 20 marks

a) Discuss the payment system touching on the historical perspective. 10 marks
b) Explain any FIVE Monetary policy instruments used to achieve objectives of Monetary policy. 10 marks

Bcf 307: Monetary Theory And Practice Question Paper

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