-Bank rate :It’s the rate at which the central bank lends to commercial banks. The rate is raised in order to discourage borrowing and therefore reducing money supply.
-Open market operations: The central bank sells treasury bills and bonds in the market.
-Special deposits /compulsory deposits /minimum reserve requirements. These are raised upwards.
-Cash ratio/ liquidity ratio: The ratio is increased in order to reduce money supply.
- moral persuasion: The central bank may appeal /request/persuade credit rationing.
-Directives/ instructions to financial institution to landless
Kavungya answered the question on September 25, 2019 at 09:43
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Highlight four characteristics of a public warehouse.
(Solved)
Highlight four characteristics of a public warehouse.
Date posted:
September 25, 2019
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Answers (1)
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Balance the following ledger accounts and extract a trial balance as at 30th June 2015
(Solved)
Balance the following ledger accounts and extract a trial balance as at 30th June 2015
Date posted:
September 25, 2019
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Answers (1)
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The following trial balance relates to Kitui Millers Ltd as at 31st December 2011.
Stock as at 31/12/2011 was valued at shs. 35,000
Required:
i)Prepare a trading, profit...
(Solved)
The following trial balance relates to Kitui Millers Ltd as at 31st December 2011.
Kitui Millers Ltd
Trial Balance
As 31st December 2011
Stock as at 31/12/2011 was valued at shs. 35,000
Required:
i)Prepare a trading, profit and loss account for the year ended 31st December, 2011.
ii)Draw a balance sheet as at 31st December, 2011.
Date posted:
September 25, 2019
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Answers (1)
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Outline four circumstances under which a intermediaries is used in distribution of a firms products
(Solved)
Outline four circumstances under which a intermediaries is used in distribution of a firms products
Date posted:
September 25, 2019
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Answers (1)
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State how the following components are treated in the measurement of national income.
(Solved)
State how the following components are treated in the measurement of national income.
Date posted:
September 25, 2019
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Answers (1)
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Explain five factors that influence the amount of money held by an individual for transaction motive.
(Solved)
Explain five factors that influence the amount of money held by an individual for transaction motive.
Date posted:
September 25, 2019
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Answers (1)
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Highlight four reasons why the government may decide to reduce her shareholding in public corporations to a level below 50%.
(Solved)
Highlight four reasons why the government may decide to reduce her shareholding in public corporations to a level below 50%.
Date posted:
September 25, 2019
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Answers (1)
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The capital of Kimosop traders on 1st January 2018 was shs. 85,000. During the year, additional investments of shs.50,000 and drawings of shs.60,000 were made....
(Solved)
The capital of Kimosop traders on 1st January 2018 was shs. 85,000. During the year, additional investments of shs.50,000 and drawings of shs.60,000 were made. The capital as at 31st Dec 2018 was 65,000. Calculate Kimosop trader’s profits or loss
Date posted:
September 25, 2019
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Answers (1)
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Outline four reasons that may have led to the change in quantities demanded of commodity X in the market as shown in the schedule below
(Solved)
Outline four reasons that may have led to the change in quantities demanded of commodity X in the market as shown in the schedule below.
Date posted:
September 25, 2019
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Answers (1)
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Using a (+) for increase, (-) for decrease and (0) for no effect , indicate the effects of the following transactions on Assets , Liabilities,...
(Solved)
Using a (+) for increase, (-) for decrease and (0) for no effect , indicate the effects of the following transactions on Assets , Liabilities, Capital and the balance sheet totals
Date posted:
September 25, 2019
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Answers (1)
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State four reasons why parastatals have generally performed poorly in Kenya.
(Solved)
State four reasons why parastatals have generally performed poorly in Kenya.
Date posted:
September 25, 2019
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Answers (1)
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The conditions given below are for a monopoly firm or a firm operating under perfect competition. Write the correct market structure against each of the...
(Solved)
The conditions given below are for a monopoly firm or a firm operating under perfect competition. Write the correct market structure against each of the conditions.
a)Market structure determines price for the product
b)There is free entry and exit.
c)Product involved is homogeneous
Date posted:
September 25, 2019
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Answers (1)
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Outline four examples of open trade credit used in home trade.
(Solved)
Outline four examples of open trade credit used in home trade.
Date posted:
September 25, 2019
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Answers (1)
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The table below contains descriptions of some goods. Classify them as Consumer, Intermediate, Free goods or Capital goods.
(Solved)
The table below contains descriptions of some goods. Classify them as Consumer, Intermediate, Free goods or Capital goods.
Date posted:
September 25, 2019
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Answers (1)
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Highlight any four services offered by commercial banks to their clients.
(Solved)
Highlight any four services offered by commercial banks to their clients.
Date posted:
September 25, 2019
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Answers (1)
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Koech started a business dealing in ladies clothing ten years ago. His business has gradually been growing and making more profits. Outline four reasons that...
(Solved)
Koech started a business dealing in ladies clothing ten years ago. His business has gradually been growing and making more profits. Outline four reasons that may account to this.
Date posted:
September 25, 2019
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Answers (1)
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The capital A/C of Mbele Kabisa Traders showed a balance of shs 50,000 as at 1st July 2004. For the year ended June 2005 the...
(Solved)
The capital A/C of Mbele Kabisa Traders showed a balance of shs 50,000 as at 1st July 2004. For the year ended June 2005 the following information was available:
a)Proprietor brought in a personal car worth sh. 80 000 for business use.
b)Net profit amounted to sh. 64 000.
c)The proprietor withdrew sh. 32 000 cash for personal use.
Prepare the capital A/C as at 30th June 2005
Date posted:
September 25, 2019
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Answers (1)
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Prepare the balance sheet of Baraka Traders from the following list of balances extracted from his books as at 31st December 2005.
Machine 150 000
Motor vehicles 200...
(Solved)
Prepare the balance sheet of Baraka Traders from the following list of balances extracted from his books as at 31st December 2005.
Machine 150 000
Motor vehicles 200 000
Stock 40 000
Creditors 25 000
Loan from KCB 100 000
Bank 20 000
Furniture 7 000
Capital 292 000
Date posted:
September 25, 2019
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Answers (1)
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In the absence of a written partnership agreement, the provisions of the Partnership Act will apply. State four such provisions.
(Solved)
In the absence of a written partnership agreement, the provisions of the Partnership Act will apply. State four such provisions.
Date posted:
September 25, 2019
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Answers (1)
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Highlight four features of open air market traders.
(Solved)
Highlight four features of open air market traders.
Date posted:
September 25, 2019
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Answers (1)