1. Explain five ways in which banks contribute to the development of Kenya (10 mks)

2. outline five reasons why banks currently account is popular with traders (10 mks)

3. Explain service offered to commercial banks by the central bank of Kenya (10 mks)

4. in what ways of the functions of commercial bank differ with those of non- bank financial institutions (10 mks)

5. explain five ways in which central bank of Kenya may control the supply of money in the country (10 mks)

6. Describe methods which may be used by commercial banks to advance money to Customers.

7. A businessman wishes to obtain a loan from a commercial bank. Highlight the conditions that he should satisfy before the bank can grant him the loan (10 mks)

8. explain five services that the central bank of Kenya offers to commercial banks (10 mks)

9. Explain four disadvantages of using a bank overdraft as a source of finances (8 mks)

10. Describe four ways in which a non- bank financial institutions differ from the commercial banks (8 mks)

11. Discuss five reasons why business people prefer to operate bank current accounts

12. outline the benefits that bank customer gets from operating a current account (10 mks)

13. Explain the 5 services offered by a commercial banks to their customers (10 mks) .

34. INTERNATIONAL TRADE

outline four benefits that Kenya derives by being a member of preferential Trade Area PTA (4 mks)

2. Give four reasons why it may be necessary for a country to control imports (4 mks)

3. state four benefits that a country may derive from participating in international trade (4 mks)

4. State four methods of controlling imports (4 mks)

5. state four measures that Kenya may take to promote her exports (4 mks)

6. State four factors that may limit the success of trade agreements among African countries (4 mks)

7. sate in the spaces provided below, state the business document to which each of the following statements relates (4 mks) Statement Document

A. Informs the buyer when goods were dispatched and by what means

B. A request by seller for payment in advance

C. Used to correct under undercharge in an invoice

D. Shows details of the transactions between seller and buyer during a given period

8. Highlights four problems a country by participating in international trade (4 mks)

9. outline four circumstances under which a proforma invoice may be used (4 mks)

10. Explain the following terms as used in international trade

a. LOCO

b. F.O.R

c. F.A.S

d. Bill of Landing 11. 2003 state three functions of departments of international trade in the ministry of commerce and industry (3 mks)

12. Country X has recorded a surplus balance of payments from its foreign trade. Outline four ways in which the country can spend these surplus earnings (4 mks)

13. List four benefits that a country derive from engaging in international trade (4 mks)