QUESTION ONE

According to Macknon Show financial markets in most of the developing countries are highly repressed.

Required:

Describe the various tools used by the regulators to achieve repression and explain the various implications of repression to the markets. (8 marks)

Explain the term Crowding effect in the financial markets. (4 Marks)

Development of financial markets leads to economic growth. Discuss (8 Marks)

(a) What are the practical difficulties of small business enterprises wishing to obtain credit for expansion (5 Marks)

(b) Explain the extent to which Microfinance entities have helped to overcome the problems you have identified in (a) above (5 Marks)