Econ 341 Economics Of Money And Banking Question Paper

Econ 341 Economics Of Money And Banking

Course:Bachelor Of Arts In Economics

Institution: Chuka University question papers

Exam Year:2013

CHUKA

UNIVERSITY

UNIVERSITY EXAMINATIONS

THIRD YEAR EXAMINATION FOR THE AWARD OF DEGREE OF
BACHELOR OF ARTS IN ECONOMICS

ECON 341: ECONOMICS OF MONEY AND BANKING

STREAMS: B.A (ECONOMICS) TIME: 2 HOURS

DAY/DATE: WEDNESDAY 24/4/2013 2.30 P.M. – 4.30 P.M.
INSTRUCTIONS:

Answer Question One and any other two.
Do not write on the question paper.

1. (a) Give a brief historical development of money. [6 marks]

(b) Outline the steps in the evolution of money stating the advantages and disadvantages of each stage. [12 marks]

(c) What are the desirable characteristics of money? State and explain. [6 marks]

(d) State and explain the functions of money. [6 marks]

2. (a) State the functions of the money markets. [6 marks]

(b) Who are the participants in the money markets and what do they do?
[7 marks]
(c) What are the money market instruments? [7 marks]

3. Describe the quantity theory of money and talk about the velocity of money. [20 marks]

4. (a) What is monetary policy? [6 marks]

(b) Explain how the Central bank effects the monetary policy. [7 marks]

(c) What are the tools of monetary policy? [7 marks]
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