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Dbm 115/Dsm 116: Introduction To Insurance And Banking Question Paper

Dbm 115/Dsm 116: Introduction To Insurance And Banking

Course:Diploma In Business Management

Institution: University Of Nairobi question papers

Exam Year:2008

UNIVERSITY OF NAIROBI

EXAMINATIONS FOR THE DIPLOMA IN BUSINESS MANAGEMENT AND DIPLOMA IN SALES AND MARKETING

DBM 115/DSM 116: Introduction to Insurance and Banking.

INSTRUCTIONS
Answer question ONE and any other TWO questions.
Use well labelled diagrams where appropriate

QUESTION ONE
a. Briefly explain any six difficulties that were inherent in the primitive barter system of trade. (9mks)
b. Outline any six qualities of money that help ease the difficulties experienced during the barter system of trade. (6mks)
c. Explain any five characteristics of insurable risks. (10mks)
d. Outline any five key services that commercial banks offer to the business community. (5mks)

QUESTION TWO
a. Describe how the following factors affect the supply of a commodity in the market.
i. Cost of input
ii. State of technology
iii. Price of a substitute good
iv. Producer expectations. (12mks)

b. What is a minimum price policy and what consequences arise in the market due to its imposition? (8mks)

QUESTION THREE
a. Due to the ongoing world financial crisis, the Central Bank of Kenya may decide to nationalize all the commercial banks in Kenya. If this was done successfully, them there would be no role for the Central Bank to play. Discuss. (20mks)

QUESTION FOUR
Describe in details the five stages recognized by various writers of the evolution of money, bringing out the advantages and disadvantages of each stage. (20mks)

QUESTION FIVE
Insurance companies in East Africa offer two classes of insurance, namely life assurance and general insurance. Describe four clauses of each. (20mks)

Dbm 115/Dsm 116: Introduction To Insurance And Banking Question Paper

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