Revision questions on banking
Revision questions on banking
POSSIBLE QUESTIONS THAT GCE BOARD CAN SET UNDER MONEY AND BANKING
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1) what do you understand by the money supply?. Critically examine the effects of an increase in the money supply in an economy.
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2) Examine the instruments of monetary policy and show how they can be used to reduced inflation
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3) “Liquidity and profitability are conflicting objectives of the commercial Bank” . How can these objective be reconciled? June 2011
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4) “Bank deposits are largely created by the banks themselves”. Explain. Are there any limitations? June 2012
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5) Explain the role of the bank of central Afrca states (BEAC) in the economy of Cameroon. June 2013
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6) What are the uses of the retail price index? Identify the problems encountered in construction such an index. June 2014
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7) The Franc CFA is money used in Cameroon. Why is it considered as a good money?. June 2015
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8) Discuss the factors which might cause an increase in the supply of money. What are the likely effects of such an increase in money supply?
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9) How may the distinction between narrow money and broad money be related to the function of money.
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10) Distinguish between the money and capital markets. How can the central bank influence the functioning of these markets?
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11) How has the introduction of money solved the problems of trade by barter?.What are the limitations of the function of money.
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12) a) With the aid of a diagram, explain the effect of an increase in vthe Liquidity preference on the rate of interest.
b) Discuss the determinants of the transaction demand for money.
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13) Define the money supply in your country . Consider how the money supply can be controlled.
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14) How and why do central Banks control the credit policies of commercial Banks?
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15) How do commercial Banks create credit?. Are there any limitations in doing so?.
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more notes at GCE REVISION and kawlo application
