W1-2-60-1-6

JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY

UNIVERSITY EXAMINATIONS 2021/2022
EXAMINATION FOR THE DEGREE OF BACHELOR OF COMMERCE
HBB 2401: INTERNATIONAL BANKING
DATE: APRIL 2022 TIME: 3 HOURS
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INSTRUCTIONS:
- Answer question one and any other two questions in the booklet
provided
- Use complete sentence to answer all the questions
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QUESTION ONE [30 MARKS]
(a) Discuss the main four functions of commercial banks. [12 marks]
(b) Name the characteristics of Banker’s acceptance. [3 marks]
(c) Discuss Quasi Banks. [2 marks]
(d) Define letter of credit [3 marks]
(e) Discuss the six types of letter of credit [6 marks]
(f) Explain the meaning of forward market [2 marks]
(g) Explain what foreign exchange is. [2 marks]

QUESTION TWO [20 MARKS]

(a) What is internet banking? [2 marks]
(b) Discuss the benefits of internet banking. [8 marks]
(c) Explain the principles of banking/lending [10 marks]

QUESTION THREE [20 MARKS]

(a) Explain the terms below as used in International Trade. WHICH TERM?
NOT CLEAR!!! […………MARKS
(b) Highlight five major functions of International Banking. [5 marks]

QUESTION FOUR [20 MARKS]

(a) Explain five indicators of risk in International Banking. [5 marks]
(b) Explain the sequence of steps in the creation of a Banker’s Acceptance.
[7 marks]
(c) Explain the risks in International Banking. [4 marks]
(d) Discuss intensively, the sovereign risks. [4 marks]