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Mid Question - Banking and Insurance (BBA0224-IBM)

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Md. Shahbub Alam
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19 views2 pages

Mid Question - Banking and Insurance (BBA0224-IBM)

Uploaded by

Md. Shahbub Alam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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SONARGAON UNIVERSITY (SU)

Department of Business Administration


Program: BBA
Mid Semester Examination, Summer 2024
Section: BBA0224-IBM
Course Code: FIN 334
Course Title: Banking and Insurance
Course Teacher: Md. Shahbub Alam
Set: A

Time: 1 Hour 30 Minutes Full Marks: 30

Instruction: Marks in the right margin indicate marks of the question.


Answer any three questions out of four questions. All questions are of equal value.

Question No. 01: [Marks: 5+5 = 10]


a) Discuss how the principles of liquidity, profitability, safety, diversity, sale ability, and stability
influence the investment policy of commercial banks. Evaluate the potential trade-offs
between these principles and provide real-world examples to support your discussion.

b) Discuss the various agency services provided by private commercial banks in Bangladesh.
How do these services enhance customer convenience and contribute to the overall banking
experience? Provide specific examples to support your discussion.
Question No. 02: [Marks: 5+5 = 10]
a) Analyze the quantitative methods of credit control used by central banks, specifically focusing
on the bank rate policy, open market operations, and variable cash reserve ratio. How do these
methods impact the supply of credit in the economy? Provide examples to support your
analysis.

b) Examine the multifaceted role of the central bank as the banker to commercial banks. Discuss
how the central bank’s functions as a custodian of cash reserves, lender of the last resort, and
clearing agent interrelate to maintain financial stability and support the operations of
commercial banks. Illustrate your points with relevant examples.

Question No. 03: [Marks: 5+5 = 10]


a) Discuss the primary functions of insurance. How do these functions benefit individuals and
businesses in managing risks?

b) Examine the uses of insurance to businesses, focusing on how insurance reduces business
risks, increases efficiency, and provides key man indemnification. How do these functions of
insurance contribute to the stability and growth of businesses?

Question No. 04: [Marks: 5+5 = 10]


a) Discuss the secondary relationships between a banker and a customer, focusing on the
roles of banker as an agent, trustee, and bailee. How do these roles enhance the trust
and convenience for customers?

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b) Analyze the significance of life insurance in meeting family needs and ensuring financial
security for dependents. How does life insurance provide long-term support for children and
widows in the absence of the primary breadwinner? Discuss with examples how different
types of life insurance policies address various family needs.

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