Agricultural finance and credit management UE Past Papers Questions.

A major advantage of a quick ratio over working capital ratio as a mesure of liquidity is that the quick ratio :

1. Concetrates on current assets  rather than current liabilities
2. Ignores accounting estimates such as the allowance for doubtful accounts
3. Excludes marketable securities whose values fluctuate widely
4. Is not affected by the firms method of accounting for inventory

Answer / Solution

UNSOLVED

Physical asset collateralization is one of the many agricultural finance instruments used in agricultural lending. This type of agricultural financing is secured by commodities or moveable assets and is commonly used when value chain linkages are weak and fragmented.

1. List down three physical asset collateralization products
2. Clearly narrate the benefits and limitations of each of the three products listed above.
3. What are the application potential of each of the three physical collateralization.

Answer / Solution

UNSOLVED

Identify and explain the various needs for agricultural firm liquidity.

Answer / Solution

UNSOLVED

Describe the notion of “credit”. Who evaluate credit?. How is the evaluation accomplished? What can credit be used for?

Answer / Solution

UNSOLVED

A farm can finance a tractor purchase with Tshs. 8,000,000/- loan at the CRDB Bank. The financing terms include a four-year loan, a 10 percent annual interest rate, and equal quarterly repayments of principal and interest. Given this information , determine the level of quarterly payments.

Answer / Solution

UNSOLVED