Agricultural finance and credit management UE Past Papers Questions.

Although agriculture forms the backbone of many dveloping countries` economies, the agricultural sector in these countries is heavily underfinanced. From the agricultural value chain finance perspectives why is this so?

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UNSOLVED

Some have argued that incorporating an agricultural business is likely to reduce the amount of capital that can be attracted to the firm rather than increasing it. How can this be true?

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UNSOLVED

Lien and hypothecation are good examples of methods used by banks to secure their rights relating to advances to customers:

1. What do you undestand banker`s lien
2. State the circumstances under which a bank may exercise the right of a general lien

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Discuss the three major components of a financial system.

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1. Briefly explain the concept of risk premium . What is it used for?
2. Why are more profitable Agricultural ventures also more risky?
3. How is the risk premium related to risk aversion?

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UNSOLVED