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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:2010

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.

QUESTION ONE
a. Briefly outline six challenges that were inherent in the barter system of exchange. (6mks)
b. Giving appropriate examples describe how government imposition of a "minimum price" affects the market for a commodity. (6mks)
c. Other than credit control, briefly discuss any other six core functions of a Central Bank. (12mks)
d. Briefly discuss the special features of life assurance. (6mks)

QUESTION TWO
a. One of the key functions of the central bank is to control money supply in the economy. Describe any five qualitative credit control techniques used by the central bank to perform this function. (15mks)
b. Discuss in details the fourth stage recognized by various writers of the evolution of money. (5mks)

QUESTION THREE
a. Explain the following principles of insurance:
i. Utmost good faith. (3mks)
ii. Indemnity (3mks)
iii. Contribution (3mks)
iv. Risk must attach (3mks)
b. Briefly explain four ways in which payments can be made in an economy. (8mks)

QUESTION FOUR
a. Explain any five types of property insurances that are to be found in Kenya. (10mks)
b. Explain five factors influencing the supply of a commodity in the market. (10mks)

QUESTION FIVE
a. Write short notes on the following terms:
i. Peril and hazard (3mks)
ii. Credit creation by commercial bank. (3mks)
iii. Reserve requirement by the central bank. (3mks)
iv. Insurance underwriting (3mks)

c. Discuss any four factors that a bank manager would take into consideration when advancing money to a customer. (8mks)

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

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