ATTEMPT ALL QUESTIONS ON MONEY AND BANKING

1       Give the meaning of money.                                                                                                   (2 mrks)

2     What are the primary functions of money?                                                                      (10 mrks)

3    Distinguish between Central Bank and Commercial Bank.                                         (8 mrks)

4   Explain briefly the agency functions performed by commercial banks                      (10 mrks)

5   What are the main functions of money and how does money overcome the shortcomings of a barter system?      (10 mrks)

6   Explain the process of money creation by the commercial banks with the help of a numerical example.                    (10 mrks)

7   What are some of the characteristics of good money                                                          (10 mrks)

8   Define the following terms in line with money and banking

i   Currency

ii  Legal tender

iii  Token money

iv  Commodity money

v   Narrow money

vi  Broad money                                                                                                                                    (10 mrks)