Part 1: Global Financial Integration

Answer the following questions: (30 points)

1. Differentiate financial integration, financial stability, monetary policy
2. Is it possible to refinance an international loan to defer payment of high interests? Explain
3. How would a financial regulatory reform change the global perspective of a country when it
comes to facing financial integration and financial stability

Additional: International investment (10 points)

Is FDI a practical option for developing countries?

Part 2: ELECTRONIC BANKING (50 points)

1. Define e-banking.
2. Define internet banking.
3. Compare internet banking and e-banking.
4. Differentiate the various electronic banking services
5. Are electronic and internet banking one and the same?

Types of E-banking services

 Internet Banking.
 Mobile banking.
 Automated Teller Machine (ATM’s).
 Debit Cards.
 Credit Cards
 Electronic Funds Transfer (EFT).
 Electronic Clearing Services (ECS).
 Electronic Data Interchange
 Telebanking.
 Door-Step Banking.

Features of internet banking

• Safe and secure method of banking;
• Hassle free process;
• Avoidance of queues for all utility bill payment;
• Easy transfers from one account to another;
• Unique user id and password;
• Application for fresh cheque book;
• Keep a check on your balance and all investments.

Internet banking also provides various services, such as:

• NEFT/RTGS funds transfer;
• Balance Check;
• Utility bill payment;
• Open or close fixed deposit account;
• Buy sovereign gold bonds;
• Buy Insurance;
• Set-up auto payment;
• Book all kinds of tickets online;
• Issue of Cheque book;
• Buying/selling Shares, IPOs;
• Buying or Selling using E-commerce websites;
• Daily Account Statements.

Next week: FINANCIAL TECHNOLOGY