SECTION A $$ SHORT ANSWER TYPE QUESTION. $[25$ MARKS$]$

Answer ALL questions in this section.

$1.$ Compare the role of mutual funds with that of commercial banks as financial intermediaries.

$(5$ marks$)$

$2.$ Briefly describe the role of derivative securities and discuss their potential impact on market

stability and systemic risk. $(5$ marks$)$

$3.$ Differentiate between aggressive and conservative funding strategies and identify the

situations in which each strategy is considered appropriate. $(5$ marks$)$

$4.$ Assess the suitability of Just in Time management as a quality enhancement tool in the

services industry. $(5$ marks$)$

$5.$ Describe two ways of dealing with uncertainty in cash budgeting. $(5$ marks$)$