$1.$ Briefly discuss two $(2)$ financial instruments each, traded on money and capital market.

$(10$ marks$)$

$2.$ Deposit money banks all over the world have asset and liability. Explain the assets and

liabilities of a bank. $(10$ marks$)$

$3.$ Lending money to customers is central to banking; it is also a very delicate decision that

requires certain steps and procedures. Mention and explain the five canons of lending

$(10$ marks$)$

$4.$ The major aim of establishing bank regulations was to protect depositors and also protect the

economy from vagaries of the financial system. Advance five $(5)$ other reasons for their

establishment. $(10$ marks$)$

$5.$ Discuss the following theories of interest.

a$.$ Time Preference Theory $($The Classical Theory$)(5$ marks$)$

b$.$ Loan able Funds Theory

$(5$ marks$)$