NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
JANUARY/FEBRUARY 2013 EXAMINATION

Course Code:               MBF833          Credit Units: 2

Course Title:              Money and Banking

Time Allowed:            2 hours

Instructions:               1. Attempt question number one (1) and any other two (2).

                                    2. Question number 1 is compulsory and carries 30 marks while  the other 2 questions carry 20 marks each.

                                         3. Present all your points in coherent and orderly manner

Questions:

(Compulsory question)

1. (a)    What does the barter system of exchange involve?

     (b)   Enumerate and discuss four disadvantages the barter system has as a medium of exchange.

2.         Money in its current use has certain qualities or properties.  List and discuss five characteristics  or qualities of money.

3.         Discuss the two approaches taken by the Classical Theory of Demand for money.

4.         Monetary economists hold different views regarding the constituents of money supply.  Discuss the traditional and modern views of the constituents of money supply.

5. (a)    Inflation has been said to be an “ill wind that blows no one any good.”

            Discuss the concept of inflation in the light of Keynesian view.

     (b)   Write short notes on three types of inflation.