FM302  Mid-Semester Test: Format and Guide

September 10, 2020

ˆ Date: Monday, 14th September, 2020, 9.30am-11.30am

Fiji Standard Time
ˆ Topics covered: from Week 1 to Week 5 will form part
of the MST.
ˆ Type: Closed-Book Test.
ˆ Number of Questions in the test: Four
ˆ Total Marks: 60
ˆ Weight: 30%
ˆ Time Allowed: 2 Hours
Below are seven suggested questions for practice.
These questions are drawn from your tutorial and lecture notes.
Please note that out of these seven questions, any four will be
tested in your Mid-Semester Test, so prepare well on All the ques-
tions.
Also, you are only required to answer the question, which means
you will not be required to write in formal essay format. However,
answers should be given in paragarphs (as complete statements) and
not in bullet points.

Here are some interesting questions to prepare on:

1. Explain the term nancial development and discuss three
reasons why nancial development is necessary for economic growth
and overall progress of the economy.
2. Dene nancial inclusion and discuss three ways in which
nancial inclusion promotes nancial development

1
 3. Dene bank stability and explain why bank stability is im-
portant. Discuss three possible measures of bank stability.
4. Provide a specic-type of non-bank nancial institutions
highlighted by the ADB (2001) report, provide its denition, and
discuss three areas of concern and three best practices highlighted
by the report.
5. Discuss four constraints of nancial development in the small
Pacic Island Countries, with examples to support your answer.
6. Comment on the ADB's (2020) growth estimates and pro-
jections for PICs for the years 2018, 2019, 2020 and 2021 (refer to
Lecture slides for the graphs and data)? Discuss some growth-
enhancing strategies for the PICs, especially those in the negative
region.
7. Using commercial and similar-type of bank in Fiji as a refer-
ence, various studies have empirically examined the determinants of
certain key factors as part of the dependent variable in the analysis.
Identify and dene three key factors from the dierent studies,
explain how these factors were measured quantitatively, and ex-
plain their importance or relevance for banks in Fiji.
Note: Marks will be given for clear and logically structured argu-
ments and explanations, which appropriately addresses the question.
Prepared by the Course Coordinator - Sem II, 2020, School of Accounting
and Finance, The University of the South Pacic