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Fnce 414:Management Of Financial Institutions December 2008 Question Paper

Fnce 414:Management Of Financial Institutions December 2008

Course:Bachelor Of Commerce

Institution: Kabarak University question papers

Exam Year:2008

KABARAK UNIVERSITY
EXAMINATIONS
2008/2009 ACADEMIC YEAR
FOR THE DEGREE OF BACHELOR OF COMMERCE
COURSE CODE: FNCE 414

INSTRUCTIONS:
1. Answer question ONE and any other TWO questions
2. Show your workings where needed, be neat, brief and to the point

Question 1 (Total marks 30)
i. As a financial expert you have been requested explain to the new human capital the managerial roles.
Give them 5 functions. 5 marks
ii. Describe the challenges that are peculiar to the managers in financial sector. 8 marks
iii. The object of any financial institution is to maximize the Value of the Shareholder. This can be
done with the assistance of the building blocks of finance as captured by the hexagram of financial
management.
Discuss the theories forming hexagram. 12 marks
iv. As a prerequisite for adoption of the Risk Based Supervisory framework, financial institutions
supervisory department has developed Risk Management Guidelines for the financial sector.
Describe any 5 common risks covered by the guidelines. 5 marks

Question 2(Total marks 20)
Compare and contrast anticipated versus unanticipated variations. 20 marks

Question 3 (Total marks 20)
i. Discuss financial risk as seen through the “TRICK” model. 10 Marks
ii. Describe the Internal versus External Resources of Financial Liquidity. 10 marks

Question 4 (Total marks 20)
i. Give a critical view on the following strategies of raising capital:
1. Dividend investment plans
2. Employee share ownership plans
3. Share dividends. 10 marks
ii. In respect to international debt crisis describe the message spelled out in portfolio theory.
10 marks

Question 5 (Total marks 20)
i. Discuss the impacts of information and communications technology on the operations of financial
institutions. 10 marks
ii. Give a brief overview of the Kenyan Microfinance industry and impacts it has on operation of
overall finance service industry. 10 marks

Fnce 414:Management Of Financial Institutions December 2008 Question Paper

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