Financial institutions questions | form six Economics

1. “Tanzania foreign exchange system is the liberalized foreign exchange regime.” Justify this statement by giving five points.
2. Describe the roles played by the following types of financial institutions existing in Tanzania

1. Central bank
2. Commercial banks
3. Specialized banks
4. Saving banks
5. Cooperative banks

Answer / Solution

UNSOLVED

1. Evaluate five factors which limit the process of credit creation of the commercial banks in Tanzania.
2. Examine five functions of the Bank of Tanzania which promote economic growth of the country.

Answer / Solution

UNSOLVED

Summarize three strengths and weaknesses of Savings and Credit Cooperative Societies (SACCOS) operating in Tanzania.

Answer / Solution

UNSOLVED

1. “The more liquid an asset is the less profitable it becomes.” Justify this contention by devising five ways used by the commercial banks to reconcile the two conflicting motives of liquidity and profitability.
2. Describe how each of the following monetary policy instruments works to control money supply in the economy:

1. Open market operations.
2. Bank rate or discount rate.
3. Reserve requirement ratio.
4. Selective credit control.
5. Moral suasion.

Answer / Solution

UNSOLVED

Describe the roles played by the following types of financial institutions existing in Tanzania.

1. Central Bank
2. Commercial banks
3. Specialized banks
4. Saving banks
5. Cooperative banks

Answer / Solution

UNSOLVED