Course$-$ BUAD $811$ Financial Market and Bank Management

INSTRUCTIONS: Answer any four $(4)$ questions

All questions carry equal marks. Time allowed: $2$ hours

Discuss two $(2)$ financial instruments each, traded on money and capital market. $(10$ marks$)$

Deposit money banks all over the world have assets and liabilities and when put into a format it provide us with the information on the financial health of the bank. Highlight and explain the assets and liabilities of a bank. $(10$ marks$)$

$($a$)$ What is lending policy? $(2$ marks$)$

$($b$)$ Mention and explain the four $(4)$ canon of lending. $(8$ marks$)$

The major aim of establishing bank regulations is to protect depositors and also protect the economy from vagaries of the financial system. Discuss five $(5)$ other reasons for their establishment. $(10$ marks$)$

Discuss the following theories of interest.

$($a$)$ Time Preference Theory $(5$ marks$)$

$($b$)$ Loan Able Funds Theory $(5$ marks$)$

Explain any five $(5)$ roles played by the Central Bank in regulating banks. $(10$ marks$)$