NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
JULY 2018 EXAMINATION

Course Code: BFN306                                                                      CREDIT UNIT: 3

Course Title: COMPARATIVE BANKING

Time Allowed: 3 HOURS

Instructions:

1. Attempt question number one (1) and any other three (3).
2. Question number 1 is compulsory and carries 25 marks while the other 3 questions carry 15 marks each. Present all your points in coherent and orderly manner.

1a. Identify and explain the characteristics of Political Economy of banking (10 marks)

1b. Explain the term “banking under capitalism”. (7 marks)

1c. Differentiate between free enterprise and capitalism (8 marks)

2a. Discuss six (6) advantages and four (4) disadvantages of Universal banking (10 marks)

2b. State the objectives of Universal banking (5 marks)

3a. Write short notes on Merchant banking and its functions (10 marks)

3b. State the rationale for establishing Development banks (5 marks)

4. (a) Enumerate and discuss the instruments in the Nigerian money market.(71/2 marks)

(b) Monetary policy is the means by which the Central Bank manipulates the money supply in order to influence the overall direction of the economy. What are the principal objectives of a monetary policy? (7^1/2 marks)

5(a) Distinguish between the role of the Federal Ministry of Finance and the Central Bank. (5 marks)

5(b). Discuss the role of credit in an economy. (10 marks)

6a. the position of the central bank in the economy is of dual purpose. Discuss the role of the Central Bank in the economic development of a nation. (9 marks) 

6b. Modern banks not only deal in money and credit creation, but also perform other useful functions. State the functions of banks. (6 marks)