a)
i)
What is the essential purpose of a financial system
(2 marks)
ii)
Using relevant illustrations, explain what happens to an economy when
financial system becomes inefficient
(8 marks)
b)
Describe the working of money market. Explain five reasons why money market is
important.
(6 marks)
c)
What is meant by international liquidity? Explain the efforts made by International
Monetary fund to solve this problem.
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