REPUPLIC OF CAMEROON

Peace – Work –Fatherland

MINISTRY OF HIGHER EDUCATION
NATIONAL COMMITTEE FOR THE ORGANISATION
OF THE HIGHER NATIONAL DIPLOMA (HND)

Field: BUSINESS, FINANCE, AND MANAGEMENT

Session: JUNE/JULY 2021
Time Allowed: 3 Hours
Specialty: BANKING AND FINANCE (ACC)
Credit Value: 6
Paper: ACCOUNTING AND FINANCE
Course Code:BF16
SET 2
INSTRUCTIONS
 This paper carries FIVE sections.
 You are required to attempt ALL the questions
 Only non – programmable calculators and OHADA/COBAC Charts of Accounts are authorised.

SECTION A: FINANCE: 25 MARKS

SUBSECTION 1: FINANCIAL MARKETS 10MARKS

1. Bulls and bears are -------------.

(a) Ordinary investors (b) Government agencies c) Speculators (d) Money lenders
2. A depository is ------------------.
(a) An electronic transfer through dematerialization
(b) A fixed deposit in a bank
(c) A transfer of physical securities
(d) Surveillance on price manipulation

3. Listing is mandatory for ------------------.

(a) Trading in stock market (b) Marketing a new issue
(c) Trading in international markets (d) Declaring dividend
4. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐is the market where the existing securities of companies are traded.
(a) Primary market (b) Secondary market (c) Money market (d) None of these
5. ‐‐‐‐‐‐‐‐‐‐‐‐is the process of admitting securities for trading on a recognized stock
exchange.
(a) Issuing (b) Investing (c) Listing (d) None of these
6. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a professional independent broker who deals in securities on
his own behalf.
(a) Arbitrage (b) Jobber (c) Odd lots (d) None of these
7. A person appointed by a stock broker to assist him in the business of securities
trading is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
(a) Sub broker (b) Tarawaniwalas (c) Authorized clerk (d) None of these
8. Speculators who neither buy nor sell securities in the market but still trade on
them are called
‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
(a) Wolves (b) Stags (c) Bears (d) None of these
9. The process of hedging the entire supply of a particular security with a view to
dictating term
is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
(a) Wash sale (b) Arbitrage (c) Cornering (d) None of these
10. Which of the following is considered as means off balance sheet financing?
(a) Derivation (b) Equities (c) Debts (d) None of these
 SUBSECTION 2: DECENTRALISED FINANCIAL SYSTEM 10 MARKS

1. The main objective of prudential regulation on microfinance institutions is

a. To protect the whole financial system
b. To ensure the safety of small deposit
c. To increase the number of microfinance institutions
d. To protect the whole financial system and ensure the safety of small deposits in
individual institutions
2. In order to prevent them from exploitation the public, microfinance
establishments are prohibited from
a. Granting loans to investors
b. Accepting deposit
c. Operating in rural areas
d. Using misleading names
3. Category two microfinance establishments that are involved in the collection
of savings and loan granting to third parties, are exclusively constituted
under the legal status of
a. Association
b. Public limited company
c. Micro credit
d. Private limited company
4.The minimum registered capital of microfinance establishments of the third
category is Fixed at
a. 50 million francs
b. 100 million francs
c. 25 million francs
d. 75 million francs
5. The success of a Microfinance Establishment depends on how they are managed
and on the quality of the audit reports that are done by the auditors. Before an
individual who wish to manage a Bank or a Microfinance Establishment apply for
an approval, he/she must
a. have the legal capacity and the required academic qualification ,
b. be resident in the country in which he is applying for his approval,
c. furnish certain documents to the Monetary Authority
d. all of the above
6. Which organ or organs is responsible for the withdrawal of license of
microfinance establishment in the CEMAC
a. Monetary authority
b. COBAC
c. BEAC
d. a and b
7. When a microfinance establishment violates the regulations of the Banking
Commission the following pecuniary sanction will be applied on it :
a. Warning and Blame
b. The prohibition to carry out some transactions or to exercise some activities
c. The suspension, the automatic resignation, or the revocation of the auditor
d. Pay a fine of 300,000 FRS
8. The main Microfinance Policy and Strategy of the Bank Group involvement in
microfinance is:
a. to provide the Bank a means of focusing its microfinance activities in order to
achieve the greatest impact within the shortest period of time
b. To reduce completion among microfinance institutions
c. To reduce tax evasion
d. To promote cooperation in the financial sector

9. Commercial banks intervene in the microfinance sector by doing the following

except
a. Creating specialized microfinance unit
b. Creating a MFI Subsidiary
c. Creating a Microfinance Service Company
d. Eliminating Strategic Alliance
10. The technical partnership of the bank in favour of the microfinance institutions
include;
a. training, transfer of funds and auditing
b. training, transfer of funds and employment
c. training, employment, auditing,
d. employment, transfer of funds and monitoring

SUBSECTION 3 : ISLAMIC FINANCE 5 MARKS

1. Negotiation of a selling price among two parties exclusive of reference by seller

to either costs or asking price is

a. ijarahwaiqtna
b. ijarah
c. musawamah
d. musharika
2. The term Riba literally means
a. Any speculation b. Any excess
c. Any profit d. Any wealth

3. Islamic financial system seeks to

a. Encourage wasteful expenditure
b. Administer land revenue
c. Postpone debt repayment
d. Enhance equality and fairness in financial dealings for the good of society as
whole
4. The Islamic financial system regards “the time value of money” as
(a) interest
(b) rent
(c) loss
(d) profit
5. Deposits placed with banks practically take the form of
a. Donations from depositors to the bank b. A sale contracts with the bank
c. Authority to the bank to lent monies d. Loans from depositors to the bank

SECTION C
STRATEGIC MARKETING MANAGEMENT IN BANKING 25 marks

1. What is the Marketing role in banks? 5 marks

2. What are the specificities of the banking market? 5 markets
3. Explain the banking marketing environment using the SWOT analysis. 5
marks
4. Briefly explain the service marketing plan. 5 marks
5. Briefly explain the types of pricing strategies. 5 marks
SECTION D: BANKING ENVIRONMENT 25 MARKS

1. State and explain four the factors affecting the banking environment. 12.5
marks

2. What is the difference between internal and external banking environment?

12.5 marks

SECTION E : LOAN PORTFOLIO MANAGEMENT 20 MARKS

1. State and explain the loan control function. 4 marks

2. What is Credit Management Information Systems? 4 marks

3. Write short notes on

i. Loan portfolio management? 2 marks
ii. Portfolio risk 2 marks

4. Explain the bank lending function .4 marks

5. Briefly explain risk diversification in loan portfolio management. 4marks