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Introduction To Insurance And Banking Dbm 115/Dsm 116 16Th November 2011 Question Paper

Introduction To Insurance And Banking Dbm 115/Dsm 116 16Th November 2011

Course:Diploma In Business Administration

Institution: University Of Nairobi question papers

Exam Year:2011

INTRODUCTION TO INSURANCE AND BANKING
DBM 115/DSM 116
16TH NOVEMBER 2011

INSTRUCTIONS

Answer question ONE and any other TWO questions

QUESTION ONE

a. Discuss any six (6) functions of a Central Bank (15mks)

b. Explain five characteristics of insurable risks (10mks)

c. Outline any three advantages and two disadvantages of paper money (5mks)

QUESTION TWO

a. Explain what you understand by consumer protection (2mks)

b. Outline five reasons why a consumer needs to be protected from manufacturers and business people (5mks)

c. Explain the following terms as used in money and banking:

i. Legal tender
ii. Fiduciary issue
iii. Credit money
iv. Full-bodied coin
v. Token coins (10mks)

d. Outline any three limitations of using credit cards (3mks)

QUESTION THREE

a. Discuss any five principles of insurance (15mks)

b. Outline any five (5) characteristics of money (5mks)

QUESTION FOUR

a. Explain any five functions of a commercial bank that are of special importance to a business person (10mks)

b. Explain any five factors that would influence the supply of a commodity in the market (10mks)

QUESTION FIVE

a. Distinguish between

i. Financial Risk and Non-Financial Risk (3mks)

ii. Pure Risk and speculative Risk (3mks)

iii. Fundamental Risk and Particular Risks (3mks)

b. Examine any six limitations of the Credit Creation process of commercial banks (9mks)

c. Explain who is an insurance underwriter (2mks)

Introduction To Insurance And Banking Dbm 115/Dsm 116 16Th November 2011 Question Paper

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