Exam paper (final assessment opportunity) for first semester 201

University of Johannesburg

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University of Johannesburg Institutional Repository

     Department of Commercial Accounting   BANKING 2A BNK22A2 FINAL ASSESSMENT OPPORTUNITY Date of Examination:  26 May 2016 Time: 2 hours Marks: 100  Assessor:   Mrs M Lepheana Internal Moderator: Mr J Mabejane   INSTRUCTIONS: This paper consists of 3 pages (including the cover page).   Answer all questions.  Write neatly and legibly.   Question  Topic  Marks  Time  1 2 3 4 5     Introduction to the financial system SARB & Regulation of financial markets Microfinance Institutions Insurance & Retirement Funds Investment Institutions     21 22 15 30 12    23 minutes 25 minutes 20 minutes 35 minutes 17 minutes        100  120 minutes   BANKING 2A                   BNK 22A2                                                            JUNE 2016            2   QUESTION 1        [21] Marks 1.1 The financial system of a country should be stable in order to achieve sustainable growth and employment. A great number of the population still do not participate in the financial system mainly because of the high fees charged for the services and lack of knowledge about its significance in the economy. Your boss has requested that you compile a document for him that he will use to address the non- banking group on the importance of the financial system in the economy. In your report discuss five of the financial system functions.                           (15)  1.2 List the allied participants.        (6)    QUESTION 2        [22] Marks The recession of 2007 was a confirmation of the importance of proper regulation of the financial system. The financial system is an integral part of the economy by providing services to all the sectors that contribute to the development of a country. a) Discuss any four functions of SARB.                        (12) b) The financial Advisory and Intermediary Service division of the FSB is regulated in terms of the FAIS ACT. Discuss any five of the regulatory framework covered in the FAIS Act.                                     (10)   QUESTION 3        [15] Marks Member based finance institutions are common in South Africa, achieving a variety of social and financial needs like burial societies provide financial assistance during a funeral, emotional support, organising, and catering. a) Discuss the four additional principles of Cooperative financial institutions.   (12) b) List any three services offered by friendly societies to their members.  (3)   QUESTION 4        [30] Marks 4.1 The South African insurance market is divided into two categories, short-term and long-term insurances. Each category is governed by its own legislation. a) Differentiate between short term and long term insurance.            (10) b) Explain the circumstances under which the motor policy will not pay for damages.                     (6) c) Discuss any two long-term policies                 (4) BANKING 2A                   BNK 22A2                                                            JUNE 2016            3   4.2 Retirements funds just like any type of savings provide their members with return on their contributions. In order to be able to accomplish that, they invest in different financial instruments depending on the strategy that they are following. Name and discuss five factors that drive the investment strategy of retirement funds.                                                   (10)                                           QUESTION 5        [12] Marks Discuss classifications of CISs in terms of (two each): a) Investment objectives.        (4) b) Asset orientation         (4) c) Area/locality          (4)      

Banking 2A

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Banking 2A

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