Questions

1. Explain five in which banks contribute to the development of Kenya (10 mks)

2. outline five reasons why banks currently account is popular with traders (10 mks)

3. Explain service offered to commercial banks by the central bank of Kenya (10 mks)

4. in what ways of the functions of commercial bank differ with those of non- bank financial institutions (10 mks)

5. explain five ways in which central bank of Kenya may control the supply of money in the country (10 mks)

6. Describe methods which may be used by commercial banks to advance money to Customers.

7. A businessman wishes to obtain a loan from a commercial bank. Highlight the conditions that he should satisfy before the bank can grant him the loan (10 mks)

8. explain five services that the central bank of Kenya offers to commercial banks (10 mks)

9.Explain four disadvantages of using a bank overdraft as a source of finances (8 mks) 10. Describe four ways in which a non- bank financial institutions differ from the commercial banks (8 mks)

11. Discuss five reasons why business people prefer to operate bank current accounts

12. outline the benefits that bank customer gets from operating a current account (10 mks)

13. Explain the 5 services offered by a commercial banks to their customers (10 mks)

14. Highlights four problems a country by participating in international trade (4 mks)

15. outline four circumstances under which a proforma invoice may be used (4 mks)

16. Explain the following terms as used in international trade

a. LOCO

b. F.O.R

c. F.A.S

d. Bill of Landing

17. state three functions of departments of international trade in the ministry of commerce and industry (3 mks)

18. Country X has recorded a surplus balance of payments from its foreign trade. Outline four ways in which the country can spend these surplus earnings (4 mks)

19 List four benefits that a country derive from engaging in international trade (4 mks) . 20.Explain five ways in which a country benefits by participating in international trade (10 mks)

21. outline five transactions which are recorded in balance of payment account of a country (10 mks)

22. 1Explain five measures that a country may take to promote her exports (10 mks)

23. Explain the meaning and significance in each of the following terms as used of the following terms as used in foreign trade. Terms of trade, balance of payment, exchange rate, . balance of trade and common market. (10 mks)

24. Explain the significance of each of the following documents as used international trade. Bill of lading, proforma invoice, indent, letter of credit

25. 2000 country X has obtained a surplus in its balance of payment. Explain the factors that could have contributed to this surplus (10 mks)

26. Explain six problems being faced by the Kenya External Trade Authority (KETA) (12 mks)

27. Explain the factors that may lead to deteriorating terms of terms of trade for a country (10 mks)

28. outline five functions of Kenya external Trade Authority (KETA) (10 mks)

29. highlight five benefit that Kenya gets from trading with other countries (10 mks)

30. the domestic currency of a certain country has been depreciating over time. Highlight five disadvantages of the depreciation of the country (10 mks)

31. Highlight five ways in which a bill of lading is useful to an importer of goods