Finance Answers

What conditions must be true for monetary policy to be effective according to Keynesian Theory?

Explain how an easing of monetary policy works through the exchange rate and what potential impact on the economy this would have

Discuss the structure of the banking sector in Kenya, clearly bringing out the players in each category, their role and supervisory bodies.

Keeping a country’s exchange rate artificially low will curb import spending and promote export spending, thus increasing AD. What are the drawbacks to this expansionary policy?

According to the model of optimal cash management, would rich individuals differ from poor ones in their demand for money?

If City Bank decides to loan out its excess reserves, by how much would the economy’s money supply increase?

Briefly describe the Procedure of analyzing Financial Statement. (7 marks)

What is the Purpose of Analyzing financial statements in a company? (8 marks)

Using a company of your choice perform a business analysis based on the following

a) The effect of the trend in the economy
b) The management of the organization
c) Competition level and its effect

A financial analyst tells you that investing in stocks will allow you to double your money in 7 years. What annual rate of return is the analyst assuming you can earn?