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i) Discuss how the following macroeconomic factors influence performance of loans. low economic activities, high unemployment, high inflation rate, and weak monetary policy [15 marks]
i) Discuss how the following macroeconomic factors influence performance of loans.
- low economic activities,
- high unemployment,
- high inflation rate, and
- weak monetary policy
[15 marks]
ii) Bank reserves are the minimum cash reserves that financial institutions must keep with the Central Bank at any given time. Discuss the advantages and disadvantages to universal banks for maintaining this reserve.
[15 marks]
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