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Money And Banking Question Paper

Money And Banking

Course:Bachelor Of Commerce (Commerce)

Institution: Kabarak University question papers

Exam Year:2009

KABARAK
UNIVERSITY
UNIVERSITY EXAMINATIONS
2009/2010 ACADEMIC YEAR
FOR THE DEGREE OF BACHELOR OF COMMERCE
COURSE CODE: FNCE 313
COURSE TITLE: MONEY AND BANKING
STREAM: Y3S1
DAY: WEDNESDAY
TIME:
4:00
–
6:00P.M.
DATE: 09/12/2009
NB! INSTRUCTIONS:
Answer questions ONE and any other TWO questions
Write your registration number clearly, be neat, brief and to the point
Page 1 of Page 2
Question
01
(Total
marks
30)
i. Expound on the definition of the terminology money.

8 marks
ii. Discuss the History of Money from Ancient Times to the current era.
6 marks
iii. Describe any 6 functions of money

6
marks
iv. Discuss the creation of commercial bank money in any modern financial system
10 marks
Question
02
(Total
marks
20)
i. Give an historical perspective of the Kenyan Financial system.
10 marks
ii. Describe any 5 functions of a central bank in a free market economy like the Kenyan. 10 marks
Question
03
(Total
marks
20)
i. In respect to the “right amount of money” in circulation in any given contemporary economy give a
critical view on the supply of money process.
8 marks
ii. Discuss any 3 limitations to the supply of supply process.
6 marks
iii. Describe the following classes of metallic money:
a) Standard money
(2 Marks)
b) Token money
(2 Marks)
c) Subsidiary money
(2 Marks
Question
04
(Total
marks
20)
i. Discuss any 5 instruments of monetary policy used in managing the money in circulation.
10 marks
ii. Describe the transaction approach to the quantity theory of money
8 marks
iii. Describe the Marshall’s equation.
2 marks
Question 05
i. Discuss any 5 roles of commercial banks in any modern financial system
10 marks
ii. Compare and contrast monetary rule policy and discretionary monetary policy.
4 marks
iii. In respect to the Keynesian perspective, describe any 3 reasons for the demand for money.
6 marks
Page 2 of Page 2

Money And Banking Question Paper

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