INTRODUCTION TO AGRICULTURAL CREDIT AND FINANCE Questions

Agribusiness Technology - ABT

Semester: Second Semester

Level: 300

Year: 2017

THE UNIVERSITY OF BAMENDA

COLLEGE OF TECHNOLOGY

END OF SEMESTER EXAMINATION

AGRICULTURAL FINANCE & CREDIT (TIME: 2 HOURS)

1. What do understand by the term agricultural finance? List at least four (04) significances of

agricultural finance.

2. List four (04) roles of credit for agricultural development.

3. What are the merits of institutional finance and demerits of non-institutional finance?

4. Briefly classify credits based on liquidity and on approach.

5. What are the financial aspects being assessed by the banker when the economic feasibility of

credit is being observed?

6. List four (04) measures for strengthening the repayment capacity of agricultural credit.

7. What are the basic credit assessment features that must be considered in lending?

8. List the procedural formalities in sanctioning of farm loan.

9. What are some of the problems of effective demand for credit in Cameroon?

10. What is the difference between a fixed loan rate and a variable loan rate?

11. Briefly explain four types of repayment plans for term loan.

12. Establish two tables and try to show the comparison between the fixed payment method and the

fixed principal method. The loan is 500,000FRS to be repaid over five years at 20% interest.

13. Find the value of $10,000 in 10 years. The investment earns 5% per year.

14. Complete the following sentences:

i. The legal documents representing a lender’s interest in collateral include a ….. or …..

ii. The time until the loan is fully due and payable is ……………………….

iii. The length of time before the lender can change the borrower’s interest rate …………

iv. …………refers to the percentage points that the lender adds to the rate index to

determine the rate charged to the borrower.

v. This principle deals with the fixing of repayment schedules of the loans advanced by

the institutional financial agencies.

vi. This principle refers that the amount given to a farmer- borrower which should be

capable of generating additional income.

Good Luck Bime Mary-Juliet (Phd)

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