Question 1

a) Discuss 2 roles played by a financial system according to Merton (1995) (6 marks)

b) Discuss 2 variables of financial development (6 marks)

c) Does financial development avail financial services to an economy? (8 marks)

Question 2

a) Define inequality (5 marks)

b) Does financial development reduce inequality? (15 marks)

Question 3

a) What is access to financial service according to Murdoch (1996)? What is fixed cost to financial access? (5 marks)

b) Does fixed cost hinder access to financial services? (10 marks)