Form 4 Business Studies questions and answers:Money and Banking

Form 4 Business Studies questions and answers:Money and Banking

Total of 20 Lessons

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1.  State how a credit transfer is used as a means of transferring money through the commercial banks.()

2.  State four limitations of barter trade.()

3.  List four characteristics of money.()

4.  Outline five reasons why money is widely used in many economies()

5.  State four methods that the central bank may use to control credit.()

6.  List four functions of development banks()

7.  Highlight four reasons why loans advanced by commercial banks in Kenya may not appeal to many people.()

8.  State four banking services that the central bank provides to the government.()

9.  Explain five ways in which banks contribute to the development of Kenya.()

10.  Outline the benefits that a bank customer gets from operating a current account.()

11.  Explain five ways in which the central bank of Kenya may control the supply of money in the economy()

12.  Describe methods which may be used by commercial banks to advance money to customers.()

13.  A business man wishes to obtain a loan from a commercial bank. Highlight five conditions that he should satisfy before the bank can grant him the loan.()

14.  Explain five services that the central bank of Kenya offers to commercial banks.()

15.  Explain five disadvantages of using a bank overdraft as a source of finance.()

16.  Describe four ways in which a non-bank financial institutions differ from the commercial banks.()

17.  Explain the services offered by commercial banks to their customers.()

18.  Outline four benefits enjoyed by a user of e-banking service()

19.  State four ways that may be used to control the amount of money in circulation by the central Bank of Kenya.()

20.  A trader has decided to take a loan to expand his business.Give two reasons why it is beneficial to borrow from non-bank financial institutions.()

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