Instructions: Answer both questions for forty (40) marks. Each question carries 20 marks. Please type out and comb-bind your responses in a maximum of four (4) pages (Font type: Times New Roman; Font size: 12; Spacing: 1.5). Remember to write your name, student number and session on your cover page.

1) In spite of the fact that the Bank of Ghanas (BoG) policy rate continues to fall, the average lending rate in Ghana doesnt appear to be responding accordingly thereby causing most business to cry. Discuss the possible reasons that may explain this phenomenon.

2) Discuss the four (4) key financial statements.