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
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