NATIONAL OPEN UNIVERSITY OF NIGERIA

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

COURSE CODE: BFN740                                                               CREDIT UNIT: 2

COURSE TITLE: REGULATIONS OF FINANCIAL INSTITUTIONS

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

 2. Question number 1 carries 30 marks, while the other questions carry 20 marks each.

                         3. Present your work in coherent and orderly manner.

QUESTION ONE (COMPULSORY)

a) The strategies of monetary policy could be classified into four distinct areas as monetary targeting, price level targeting, inflation targeting, and exchange rate targeting. Elucidate.    (12 marks)

b) Discuss the factors that influence the choice of monetary policy framework by a central bank.    (12 marks)

c) Explain the three objectives towards which a programme of economic stabilization is usually directed in modern times.     (6 marks)

QUESTION TWO

(a) Discuss the rationale for the establishment of Deposit Insurance Scheme in Nigeria.   (16 marks)

(b) Explain briefly the policy implementation of the CBN in performing its role in economic development.     (4 marks)

QUESTION THREE

The instability in the Nigerian banking system has been precipitated by both exogenous and endogenous factors. Evaluate this statement.    (20 marks)

QUESTION FOUR

The IMF does not require collateral from countries seeking financial assistance but rather requires the government to engage in policy reform. Expatiate.  (20 marks)

QUESTION FIVE

Substantiate the view that African Development Bank plays vital role in development of African economies.    (20 marks)