Agricultural finance and credit management UE Past Papers Questions.

What do you understand by the term Semi-formal financial institutions? Discuss why such institutions may be more efficient in delivering micro-credit.

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Agricultural credit has the potential to ameliorate farmers` input use constraints, smoothen farmers` liquidity challenges, and enhance farmers` productivity. Respond to the following questions clearly elucidating how the above can be achieved.

1. How does credit affect farm bisiness?
2. What are the three key considerations that a farmer should address before making use of credit?
3. What are the three core costs of using credit?

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The theory of financial systems tells us that business enterprises issue liabilities and/or acquire financial assets on market terms from the financial system. Explain the role that financial institutions play in the system.

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Analysts who scrutinise firms for credit worthness usually study the firm`s financial statements. In doing so , insights are derived through calculating financial ratios. Mention the three broad categories of financial ratios. Explain the logic , purposes and present formulas for one set of the three categories of financial ratios.

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Define and briefly describe the following terms in relation to finance.

1. Repurchase agreement
2. Prime commercial paper
3. Bankers acceptance
4. Treasury bill

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