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Fnce 324: Financial Institutions And Markets Y3s2 Question Paper

Fnce 324: Financial Institutions And Markets Y3s2

Course:Bachelor Of Commerce

Institution: Kabarak University question papers

Exam Year:2008

COURSE CODE: FNCE 324
COURSE TITLE: FINANCIAL INSTITUTIONS AND
MARKETS
STREAM: Y3S2
INSTRUCTIONS:
1. Answer Question One and any other two questions.
2. Write your registration number clearly, be neat and precise
3. Duration: 2 hours
QUESTION 01 (Total marks 30)
i. Give a critical account on any 4 basic types of Financial Market Structures?
10 marks
ii. Discuss any 5 instruments often applied by monetary policy authority.
10 marks
iii. Describe a yield curve.
2 marks
iv. Describe the following 2 theories as attached to the behaviour of the term
structure of interest rates.
a) Expectation theory
b) Market fragmentation theory
8 marks
QUESTION 2 (Total Marks 20)
i. Describe any 5 unique bonds found in Capital Markets. 10 marks
ii. If you received Ksh. 10,000 today, the present value would of course be Ksh.10,
000 because present value is what your investment gives you now if you were to
spend it today. If Ksh.10, 000 were to be received in a year, the present value of
the amount would not be Ksh.10, 000 because you do not currently have it in your
hand. Using the above given data compute its present value if you were to invest
it for 3 years at an interest rate of 4.5 %. 4 marks
iii. Discuss any 3 basic roles of financial institutions and markets. 6 marks
QUESTION 3 (Total Marks 20)
i. Discuss the roles of each of the following 4 players in Financial Markets.
Brokers;" "Dealers;" "Investment bankers;" and "Financial Intermediaries.
10 marks
ii. Discuss the various roles of two institutions assisting in government debt
management? 10 marks
QUESTION 5 (Total marks 20)
Give an analytical view on a derivative market and its securities. 20 marks

Fnce 324: Financial Institutions And Markets Y3s2 Question Paper

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