ACCREDITATION No.

21-06222/L/MINESUP/SG/DDES/ESUP/SDA/MF OF 22/09/2021

Academic Year/Année académique: _____2023/2024. Semester: ___ School: __Buisness__

Level/Niveau ___1_____ Speciality: __Banking and Finance_______________
Course/cours : __Finance 1____ Code : _______________
Date: _____________________ Time: __2 hours_________________
Lecturer/Enseignant _PENN COLLINS AWAH_____ Tél: ______675931381_______
Setting A
Instructions. Answer all Questions. Total 70 marks

Financial markets (15 Marks) 1.5 Marks Each

1. Which of the following statements is not true with regards to capital markets
A. The funds are raised for a short period of time
B. Bothe debts and equity funds can be raised
C. It is classified into two types
D. All of the above
2. It is an instrument of short term borrowing by the government of Cameroon maturing in less
than one year.
A. Commercial bill
B. Treasury bill
C. Call money
D. None of the above
3. It is a method by which banks borrow from each other to be able to maintain then acsh reserve
ration
A. Commercial bill
B. Commercial papers
C. Call money
D. None of the above
4. Which of the following participants represent the capital markets
A. Development banks
B. Commercial banks
C. Stock exchanges
D. All of the above
5. ………allocates saving efficiently in an economy to ultimate users either for investment in
real assets or for consumption
A. Economic system
B. Banking system
C. Financial system
D. Market system
6. Which of the following is a financial asset
A. Gold
B. Silver
C. Share
D. Land
7. The amount paid for an option is the
A. Strike price
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 B. Premium
C. Discount
D. Commission
8. The certificate which evidences an unsecured corporate debt of short term maturity
A. Certificate of deposits
B. Commercial paper
C. Secured premium notes
D. interbank participation certificate
9. ………is a set of complex or closely connected or intermixed institutions, agents practices
markets claims etc. in an economy
A. Financial intermediary
B. Financial company
C. Financial system
D. None of these
10. Those persons who do not accept deposit from the public but merely lend their own funds
A. Bankers
B. Borrowers
C. Agents
D. Money lenders
Decentralized Financial Systems’ (15 marks). 1.5 Marks each
1. Which of the following is not true of first category microfinance institutions
A. They must have a minimum social capital of about 150 ,million
B. They give out new loans exclusively to their members
C. They are constituted in a judicial form exclusively fixed by the cobac regulation
D. They accept deposits from their members only
2. ………..is the systematic examination of the books and records of a business
A. Checking
B. Verification
C. Accounting
D. Auditing
3. Which of the following is the most important relationship between the microfinance and its
clients
A. Agent and principal
B. Debtor and creditor
C. Trustee and beneficiary
D. Payer and baillee
4. What prevents the poor from getting bank loans under the central bank system
A. Complexity of procedure
B. Absence of collateral
C. Low interest rate
D. None of the above
5. Decentralised financial institutions need to lend more to bowers because
A. High cost of borrowing from informal; sources
B. Borrowers wish to set up enterprise
C. Borrowers need money but cannot ask
D. None of these
6. Microfinance institutions must have an internal control system which permits them to
determine and ensure their category
A. True
B. Partly false
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 C. False
D. Partly true
7. Loans to poor people by banks have many limitations including lack of security and high cost.
So to help them which type of finance system can be develop
A. Ponzi schemes
B. Microfinance system
C. Money laundering
D. Money tampering finance
8. The following statements are related to microfinance system. Locate the wrong option
A. It provides micro credit scope for small savings and remittance of funds
B. It based on the principle of livelihood creation
C. The ;livelihood mission means engaging in activities in a routing fashion to generate
cash or non-cash income
D. None
9. The beneficiaries of microfinance business are…
A. Land less labour
B. Marginal farmers
C. Vendors in small markets
D. All of the above
10. The microfinance institutions differ from one another in terms os
A. Product offering
B. Loa repayment structure
C. Products offerings
D. All of theses
Islamic finance (10 Marks) 2 marks each
1. All resources in nature are means for man to attain his falah (happiness) in this world and in
the.
A. Hereafter
B. Friends
C. Death
D. Family

2. The profit loss sharing in the Islamic Banking is known as.

A) Mudarabh
B) Murabaha
C) Musharakah
D) Bai Muajjal

3. Which one is the compulsory economic duty of the wealthy Muslims?

A) Zakat
B) Prayer
C) Sadaqa
D) Hajj
4. The voluntary alms in Islam are called.
A) Zakat
B) Jazya
C) Saddaka
D) Ganimath
5. The term used to denote Usury.
A) Riba
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 B) Baith-ul-Mal
C) Diwan-e- Arz
D) Treasury
Section B. Answer all questions 30 Marks

Financial Markets (15 marks)

1. Differentiate between primary and secondary markets. (5 marks)
2. What do you understand by financial intermediation and what are the functions of financial
intermediaries. (5 marks)
3. What do understand by financial services and state 5 characteristics of services. (5 marks)
Decentralized Financial Systems (15 marks)
1. What is a, microfinance financial institution and explain the various categories of
Microfinance institutions in Cameroon. 5 marks
2. Explain 5 roles of COBAC
3. State and explain 5 products offered by microfinance institutions

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