Question

REVIEW QUESTIONS SET 2 Question one a) Define what is a stock exchange and the main purpose of a stock exchange. b) What are the main functions of a stock exchange and their relevance to the economy. c) With valid points differentiate between a common stock and a preferred stock. d) Stock usually can trade on either Exchange Traded (Organizational Exchange) or Over the Counter (OTC) Markets. Explain Question two a) Why do commercial banks hold investment securities? b) Explain with examples on the role of financial intermediaries in providing liquidity and diversifying risk. Question three a) Discuss the relevance of an insurance company in Tanzania b) Discuss the relevance of a pension fund in Tanzania c) Differentiate between term life insurance and whole life insurance. Question four a) What is an investment company? b) Explain different types of investment company Question five Financial crises in an advanced economies have progressed in two stages. Required: Explain the two stages. Question six a) How does the concept of asymmetric information help to define a financial crisis? b) Describe the situation where banks were reluctant to lend to the public, which caused the economy to deteriorate. c) Define "financial frictions" in your own terms and explain why an increase in financial frictions is a key element in financial crises. d) "Bank bailouts built the momentum of the global financial crisis." Discuss. Question seven a) What are Mortgages? b) What are the possible benefits of a mortgage loan? c) What are the main terms for mortgage loans that protect the lender from financial losses? Question eight You are a financial analyst working for a consulting firm. Your client, a large multinational corporation, is interested in improving its financial management practices and has asked for your advice on the various components of the financial system and their role. Required: a) Explain 5 components of financial system b) Explain impact of technology in financial system Question nine Financial institutions play a crucial role in channeling funds from savers to borrowers in an economy. These institutions act as intermediaries between savers who want to invest their surplus funds and borrowers who need funds for various purposes such as starting a business, buying a home, or financing education. Required: What are the significances of financial institutions in channeling funds? (8 points)

REVIEW QUESTIONS SET 2
Question one
a) Define what is a stock exchange and the main purpose of a stock exchange.
b) What are the main functions of a stock exchange and their relevance to the economy.
c) With valid points differentiate between a common stock and a preferred stock.
d) Stock usually can trade on either Exchange Traded (Organizational Exchange) or Over the Counter (OTC) Markets. Explain

Question two
a) Why do commercial banks hold investment securities?
b) Explain with examples on the role of financial intermediaries in providing liquidity and diversifying risk.

Question three
a) Discuss the relevance of an insurance company in Tanzania
b) Discuss the relevance of a pension fund in Tanzania
c) Differentiate between term life insurance and whole life insurance.

Question four
a) What is an investment company?
b) Explain different types of investment company

Question five
Financial crises in an advanced economies have progressed in two stages.
Required: Explain the two stages.
Question six
a) How does the concept of asymmetric information help to define a financial crisis?
b) Describe the situation where banks were reluctant to lend to the public, which caused the economy to deteriorate.
c) Define "financial frictions" in your own terms and explain why an increase in financial frictions is a key element in financial crises.
d) "Bank bailouts built the momentum of the global financial crisis." Discuss.

Question seven
a) What are Mortgages?
b) What are the possible benefits of a mortgage loan?
c) What are the main terms for mortgage loans that protect the lender from financial losses?

Question eight
You are a financial analyst working for a consulting firm. Your client, a large multinational corporation, is interested in improving its financial management practices and has asked for your advice on the various components of the financial system and their role.

Required:
a) Explain 5 components of financial system
b) Explain impact of technology in financial system

Question nine
Financial institutions play a crucial role in channeling funds from savers to borrowers in an economy. These institutions act as intermediaries between savers who want to invest their surplus funds and borrowers who need funds for various purposes such as starting a business, buying a home, or financing education.

Required: What are the significances of financial institutions in channeling funds? (8 points)

REVIEW QUESTIONS SET 2
Question one
a) Define what is a stock exchange and the main purpose of a stock exchange.
b) What are the main functions of a stock exchange and their relevance to the economy.
c) With valid points differentiate between a common stock and a preferred stock.
d) Stock usually can trade on either Exchange Traded (Organizational Exchange) or Over the Counter (OTC) Markets. Explain

Question two
a) Why do commercial banks hold investment securities?
b) Explain with examples on the role of financial intermediaries in providing liquidity and diversifying risk.

Question three
a) Discuss the relevance of an insurance company in Tanzania
b) Discuss the relevance of a pension fund in Tanzania
c) Differentiate between term life insurance and whole life insurance.

Question four
a) What is an investment company?
b) Explain different types of investment company

Question five
Financial crises in an advanced economies have progressed in two stages.
Required: Explain the two stages.
Question six
a) How does the concept of asymmetric information help to define a financial crisis?
b) Describe the situation where banks were reluctant to lend to the public, which caused the economy to deteriorate.
c) Define "financial frictions" in your own terms and explain why an increase in financial frictions is a key element in financial crises.
d) "Bank bailouts built the momentum of the global financial crisis." Discuss.

Question seven
a) What are Mortgages?
b) What are the possible benefits of a mortgage loan?
c) What are the main terms for mortgage loans that protect the lender from financial losses?

Question eight
You are a financial analyst working for a consulting firm. Your client, a large multinational corporation, is interested in improving its financial management practices and has asked for your advice on the various components of the financial system and their role.

Required:
a) Explain 5 components of financial system
b) Explain impact of technology in financial system

Question nine
Financial institutions play a crucial role in channeling funds from savers to borrowers in an economy. These institutions act as intermediaries between savers who want to invest their surplus funds and borrowers who need funds for various purposes such as starting a business, buying a home, or financing education.

Required: What are the significances of financial institutions in channeling funds? (8 points)

Added by Happy A.

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