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Cfm 309-F Financial Markets And Institution (Day + Eve) Question Paper

Cfm 309-F Financial Markets And Institution (Day + Eve)

Course:Bachelor Of Commerce

Institution: Kca University question papers

Exam Year:2011

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UNIVERSITY EXAMINATIONS: 2010/2011
THIRD YEAR EXAMINATION FOR THE DEGREE OF BACHELOR OF
COMMERCE
CFM 309-F FINANCIAL MARKETS AND INSTITUTION (DAY + EVE)
DATE: DECEMBER2011 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One and Any Other Two Questions
Question One
a) Briefly describe the role of central bank of Kenya (CBK) in the Kenyan financial systems.
(5 Marks)
b) Give a brief explanation of the following terminologies affecting the stock exchange
i) Broker
ii) Jobber/dealer/market maker
iii) Contango
iv) Backwardation
(8 Marks)
c) Explain the segmented market theory (6 Marks)
d) Briefly describe six outstanding instruments of money market (6 Marks)
e) Describe any five instruments of the monetary policy. (5 Marks)
Question Two
a) The literature of central bank has defined a number of types of independence related to central
bank. Discuss four types of central bank independence (12 Marks)
b) Discuss the roles and functions of the retirement benefit authority (RBA) (8 Marks)
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Question Three
a) The Current Theories Of Financial Intermediation Focuses On Transaction Cost And
Asymmetric Information. Briefly Explain This Terms.
i) Transaction Cost
ii) Asymmetric Information (6 Marks)
b) Financial Intermediation Stimulates The Process Of Financial Mobilization
i) Explain Financial Mobilization Theory (6Marks)
ii) Discuss The Advantages Or Benefits Of Financial Intermediaries (8 Marks)
Question Four
a) The world bank group was established in 1945 to assist in bringing about smooth transition
from a war time to a peace time economy
i) Discuss the functions of the general world bank group. (4 Marks)
ii) Contrast the activities of IBRD and IDA (6 Marks)
b) Discuss the objectives of IMF (5 Marks)
c) Differentiate between the functions of IMF and the world bank group (5 Marks)
Question Five
a) CMA was created by an act of parliament in 1990 so as to create a conducive environment for
buying and selling long-term securities
i) Discuss the roles of CMA.
(8 Marks)
b) You have been contracted as an expert in finance to advice why LTD a major export company
in Kenya on issues dealing with listing of shares. The company is considering to cross list in
Uganda Tanzania, Burundi, and Rwanda.
i) Advise the company on the advantages of cross listing (6 Marks)
ii) Advise the company on the factors to consider when doing cross border listing.
(6 Marks)

Cfm 309-F Financial Markets And Institution (Day + Eve) Question Paper

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