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Money and Banking

The document contains past exam questions from various years related to money and banking topics such as: - The functions of money including as a medium of exchange and store of value. - How higher interest rates can affect a company like Navistar. - The roles and functions of central banks such as influencing consumer saving and differing from commercial banks. - How commercial banks encourage saving and perform functions in an economy. - The importance of stock exchanges in encouraging business expansion.

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Bloom Deliora
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119 views1 page

Money and Banking

The document contains past exam questions from various years related to money and banking topics such as: - The functions of money including as a medium of exchange and store of value. - How higher interest rates can affect a company like Navistar. - The roles and functions of central banks such as influencing consumer saving and differing from commercial banks. - How commercial banks encourage saving and perform functions in an economy. - The importance of stock exchanges in encouraging business expansion.

Uploaded by

Bloom Deliora
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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FARYAL HUMAYUN 0321 4643163

Money and Banking


Nov 2002, Q1:
In August 2000 Navistar, a truck manufacturer in North America, announced plans to reduce the number
of workers by 1100, as increased fuel prices and higher interest rates had caused a reduction in sales. It
said it would also reduce its $600m annual capital spending. Navistar reported a net profit for the third
quarter of 2000 of $96m. This was a reduction from $225mfor the same quarter a year earlier. Revenue
for the year 2000 was $1.92 billion; in the previous year revenue was $1.87 billion.
(c)Explain how higher interest rates might have affected the company. [5]
Nov 2008, Q2:
(c)Outline the functions of a central bank. [4]
(d)Analyse how a central bank might influence consumer saving. [6]
Jun 2010-1, Q7:
(a)Describe the functions of money. [6]
(b)Identify and explain three functions of a central bank which differ from the functions of a commercial
bank. [6]
Nov 2010-2, Q3:
(a)Describe the functions of money. [4]
Nov 2010-3, Q3:
(a)Describe the functions of a commercial bank. [4]
(b)Explain how a stock exchange can play a key role in an economy. [4]
Jun 2011-2, Q1:
(b) Describe the role that a stock exchange can play in a country’s economy. [4]
Jun 2012-2, Q4:
(a) Explain why it is better for individuals to use money rather than barter. [6]
(b) Describe the functions that commercial banks perform in an economy. [6]
Nov 2012-2, Q4:
(a) Describe the four functions of money. [4]
(b) Explain how commercial banks may encourage saving. [6]
Jun 2013-2, Q4:
(a) What is meant when it is stated that money performs the functions of (i) a medium of exchange and
(ii) a store of value? [4]
(b) Explain the role a central bank can play in an economy. [6]
(c) Discuss how important a stock exchange can be in encouraging firms to expand. [10]
Jun 2014-2, Q4:
(a) Describe two functions of a central bank. [4]
Nov 2014-2, Q4:
(a)Explain how well money performs its function as a medium of exchange. [5]
(b)Analyse the importance of a central bank in an economy. [7]
Jun 2015-2, Q1
(f) Describe two functions of a central bank. [4]
(g) Discuss whether the growth of a commercial bank will benefit its customers. [6]
Jun 2015-2, Q7
(b) Explain two functions of money. [4]
Nov 2015-2, Q5
(a)Define ‘medium of exchange’. [2]
(b)Explain two ways in which a central bank differs from a commercial bank. [4]

FARYAL HUMAYUN 0321 4643163

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