Questions

1. Highlight five reasons why budgeting is important to a business organization ( 10 mks) 2. Discuss the reasons why a business organization may prepare budget (10 mks)

3. Discuss the various classes of taxes ( 10 mks)

4. Outline the disadvantages of direct taxes ( 10 mks)

5. Explain any 5 principles of public expenditures ( 10 mks)

6. Discuss the importance of a budget as a toll of control ( 10 mks)

7. Highlight any five features that a government should consider when deciding on a good tax system (10 mks)

1 state how a credit transfer is used as a means of transferring money through the commercial banks (3 mks)

. 2Highlight four advantages of using a telegraphic money order as a means of remitting money though the post office. (4 mks) .

state four limitations of barter trade (4 mks).

3 in the spaces provide below indicate with a tick whether each of the following statements is true or false about commercial banks (5 marks)

True False

- Accept deposits from the members of the public

- Provides safe custody for the valuables .

- Issues currency for the use in the country

- Controls money supply in the country

- Lends more to the public

list four characteristics of money (4 mks)

F. state four methods that central bank may use to control credit (4 mks)

G list four functions of development (4 mks)

H. highlight four reasons why loans advanced by commercial bank in Kenya may not appeal to many people (4 mks)

I. Give four disadvantages of barter trade (4 mks)

J. State four banking services that the central bank of Kenya provides to the government (4 mks)

K. Wambua intends to import a car from Dubai which costs Kshs. 20, 0000 Dirams. If 4 Dirams = 1 Us Dollar and Kshs 70 = 1 Dollar, calculate the amount in Kenya shillings that Wambua will pay for the car.

L. highlight 4 functions of the Central Bank of Kenya

M. given below is the first stage in the historical development of money list the next four stages in their order of occurrence (4 mks)

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

2. 1 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) .

1 outline four benefits that Kenya derives by being a member of preferential Trade Area PTA (4 mks)

2. Give four reasons why it may be necessary for a country to control imports (4 mks)

3. 1 state four benefits that a country may derive from participating in international trade (4 mks)

4. State four methods of controlling imports (4 mks)

5. state four measures that Kenya may take to promote her exports (4 mks)

6. State four factors that may limit the success of trade agreements among African countries (4 mks)

7. sate in the spaces provided below, state the business document to which each of the following statements relates (4 mks)

Statement Document

A. Informs the buyer when goods were dispatched and by what means

B. A request by seller for payment in advance

C. Used to correct under undercharge in an invoice

D. Shows details of the transactions between seller and buyer during a given period 8. 2001 Highlights four problems a country by participating in international trade (4 mks)

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

10. Explain the following terms as used in international trade a. LOCO b. F.O.R c. F.A.S d. Bill of Landing

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

12. 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)

13. List four benefits that a country derive from engaging in international trade (4 mks) 2Explain five ways in which a country benefits by participating in international trade (10 mks

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

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

5. 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)

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

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

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

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

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

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

11. the domestic currency of a certain country has been depreciating over time. Highlight five disadvantages of the depreciation of the country (10 mks) 12. 2000 Highlight five ways in which a bill of lading is useful to an importer of goods