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Fnce 324: Financial Institutions And Markets Question Paper

Fnce 324: Financial Institutions And Markets

Course:Bachelor Of Commerce

Institution: Kabarak University question papers

Exam Year:2008

INSTRUCTIONS:
1. Answer questions 1 and any other 2 questions
2. Write your registration number clearly, be neat, precise and to the point

Question 1 (Total marks 30)
i. Give a critical view of any 5 types of financial markets.
10 marks
ii. Discuss any 3 types of Contractual financial institutions found in the Kenyan financial system.
6 marks
iii. According to the Kenyan Economic Survey, 2008, inflation is still in a two digits level and in
a way this could act as one of the barriers to the achievement of the 2030 economic goals. As a
monetary policy consultant give a critical view on any 3 instruments that the Central Bank of
Kenya can use in dealing with this “social evil”. 6 marks
iv. In respect to globalization discuss the development of trading system in the stock exchange
system. 8 marks
Question 2 (Total marks 20)
i. Discuss any 5 instruments of money market that are found in the Kenyan financial system.
10 marks
ii. Describe the basis of Time Value of Money concepts. 4 marks
iii. Assume that you are 20 years old and have accumulated Ksh 50,000 in your savings
account. You can add Ksh100 at the end of each month to your account which pays an annual
interest rate of 12% compounded monthly. Calculate the amount you perceive to receive after 30
years. 6 marks
Question 3 (Total marks 20)
i. Describe any 5 arguments against globalisation of financial markets. 10 marks
ii. Use a well-labelled diagramme to analyse the Term Structure of Interest rates as is used by
financialists in predicting the trends of the general economy and describe any 2 theories
related to it. 10 marks
Question 4 (Total marks 20)
i. Discuss any 8 factors that influence market interest rates. 20 marks
Question 5(Total marks 20)
i. Discuss any 4 current functions of the International Monetary Fund? 10 marks
ii. Discuss any 4 arguments against the internalization/globalization of financial market. 10 marks.

Fnce 324: Financial Institutions And Markets Question Paper

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