a. Explain the meaning of financial innovation giving relevant examples of recent innovations in Kenya. (9 marks)
b. Discuss the major strategies a financial institution can employ to deal with the problem of adverse selection using local examples.( 3 marks)
c. Explain any six macro economic factors likely to be influenced by world financial crisis. (3 marks)
The table below shows the demand for a particular brand of razor in a shop for each of the last nine months Month 1 2 3 4 5 6 7 8 9 Demand 10 12 13 17 15 19 20 21 20 i. Calculate a three month moving average for months three to nine. What would be forecast for the demand in the month tenth
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