Form 4 Business Studies questions and answers:Money and Banking
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Explanation/Answer Text:
-Frequent use of overdraft could be a sign of poor management hence it makes it difficult to obtain credit.
-Overdrafts are not easily available unless one is well known
-Interest repayment cannot be planned for with certainty
-Overdrafts are only given to current account holders only
-Repayment patterns are unplanned hence any deposits made in the account may be assumed to be repaying the overdraft
-Short term repayment period which may affect the cash flow of a firm adversely
Questions/Lessons List
2. State four limitations of barter trade. ( free lesson)
3. List four characteristics of money. ( free lesson)
4. Outline five reasons why money is widely used in many economies ( free lesson)
5. State four methods that the central bank may use to control credit. ( free lesson)
6. List four functions of development banks ( free lesson)
8. State four banking services that the central bank provides to the government. ( free lesson)
9. Explain five ways in which banks contribute to the development of Kenya. ( free lesson)
10. Outline the benefits that a bank customer gets from operating a current account. ( free lesson)
12. Describe methods which may be used by commercial banks to advance money to customers. ( free lesson)
14. Explain five services that the central bank of Kenya offers to commercial banks. ( free lesson)
15. Explain five disadvantages of using a bank overdraft as a source of finance. ( free lesson)
17. Explain the services offered by commercial banks to their customers. ( free lesson)
18. Outline four benefits enjoyed by a user of e-banking service ( free lesson)
