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Cfm 301 Development Finance Question Paper

Cfm 301 Development Finance 

Course:Bachelor Of Commerce

Institution: Kca University question papers

Exam Year:2011




UNIVERSITY EXAMINATIONS: 2011/2012
YEAR 3 EXAMINATION FOR THE BACHELOR OF COMMERCE
CFM 301 DEVELOPMENT FINANCE (Saturday)
DATE: APRIL 2012 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One and Any other Two Questions
QUESTION ONE
a) You are the senior development finance manager for your organization and you have been tasked
to speak to a visiting team of project officers from Juba, South Sudan who benefit from grants from
your organization.
i) Explain to them the key issues on how to manage development projects (6 Marks)
ii) Discuss the rationale for conducting impact analysis on development projects
(4 Marks)
b) Most multilateral development banks are continental. State a case for the two major banks in Africa
and Europe. (6 Marks)
c) Most developing countries are now turning to micro financing to increase access to financial
services for its people. Advise on the delivery of these services through microfinance institutions.
(7 Marks)
d) Financial intermediaries facilitate allocation of financial resources for economic growth.
Exhaustively explain the two factors on which efficient allocation of these resources depend
(7 Marks)
2
QUESTION TWO
a) The Kenya government in last several years embarked on unprecedented infrastructure
development, upgrading and renewal in the energy, telecommunication and transport sectors.
Elucidate the import of these grand projects on the social and economic activities of the country in
light of Vision 203
b) You are the senior development finance manager for your organization and you have been tasked
to speak to a visiting team of project officers from Juba, South Sudan who benefit from grants from
your organization.
i) Explain to them the key issues on how to manage development projects (8 Marks)
ii) Discuss the rationale for conducting impact analysis on development projects
(6 Marks)
c) Most multilateral development banks are continental. State a case for the two major banks in Africa
and Europe
QUESTION THREE
a) Write brief notes on the following sources of development finance.
i) International finance facility (IFF) (3 Marks)
ii) Foreign direct investment (FDI) (4 Marks)
iii) Foreign aid (3 Marks)
b) Discuss how to conduct a project appraisal (10 Marks)
QUESTION FOUR
a) Explain five reasons why government financial regulators should find it necessary to impose
operational and reporting regulations to microfinance institutions (10 Marks)
b) Give a brief explanation for each of the following as they apply to venture business
i) Country risk
ii) Financial risk
3
iii) Exchange rate risk
iv) Liquidity risk
v) Business risk
(10 Marks)
QUESTION FIVE
a) The Kenya shilling experienced rapid depreciation against the hard currencies specifically the US $
for the better part 2011.Elucidate the possible causes for its depreciation. What measures would
you take to arrest its further depreciation? (8 Marks)
b) What social economic effects has it had on various sectors of the economy? (8 Marks)
c) Discuss why domestic savings are an important component of development finance ( 6 Marks)
d) The Kenya government in last several years embarked on unprecedented infrastructure
development, upgrading and renewal in the energy, telecommunication and transport sectors.
Elucidate the import of these grand projects on the social and economic activities of the country in
light of Vision 203
e) You are the senior development finance manager for your organization and you have been tasked
to speak to a visiting team of project officers from Juba, South Sudan who benefit from grants from
your organization.
i) Explain to them the key issues on how to manage development projects (8 Marks)
ii) Discuss the rationale for conducting impact analysis on development projects
(6 Marks)
f) Most multilateral development banks are continental. State a case for the two major banks in Africa
and Europe. (6 Marks)






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