Model Questions

Central bank

1. Describe each of the eight functions of the central bank (3 marks each)
2. Describe each of the eight tools of credit control(3 marks each)

Investment Banks

1. List the functions of investment banks

2. Draw the flow chart for the underwriting process.
3. Describe the giving advice stage of underwriting.
4. Describe the filing documents stage of underwriting.
5. Name and describe the three levels of subscription in underwriting.
6. Describe private placement and best efforts.
7. What is the role of investment bankers in mergers and acquisitions?
8. What is the role of investment bankers in equity sales?

Microfinance

1. What are the differences between microfinance institutions and

commercial banks?
2. What are the reasons people take microcredit loans? Give examples of each
reason.
3. Describe group lending model and why it is effective.
4. How can microfinance lending be made more successful?
5. What is the extent of success of microfinance in poverty alleviation and
economic development?
6. What is the extent of success of microfinance in womens empowerment?
7. Is microfinance economically and operationally viable?

Islamic Banks

1. What are the differences between Islamic banks and commercial banks?
2. Name and describe two Islamic banking deposit accounts.
 3. Describe the rules of musharaka profit and loss sharing.
4. Describe the rules of musharaka management.
5. Describe diminishing musharaka.
6. Describe mudaraba.
7. What are the capacities of mudarib?(name and describe)
8. How is profit and loss shared in mudaraba?
9. Write about collective mudaraba.
10.What are the steps in murabaha?
11. How is murabaha different from ordinary sales?
12.What are the steps in Ijarah?
13.What are the rules of Ijara with respect to the expenses of the lessor and
the lessee?
14.What are the rules of Ijara with respect to setting rental amount?
15.Describe Salam and Istisna.
16.How are salam and istisna different?
17.Give examples of which business can be done with each of the Islamic
modes of finance.

Banking Ethics

1. Name three ways the government is involved in unethical banking

activities.
2. Name three ways the banks directors are involved in unethical activities.
3. Name three ways banks officers are involved in unethical activities.
4. Describe how auditors and lawyers of the banks are involved in unethical
activities.
5. Name some ways ethics can be maintained in Banks.