AGBM 851: AGRICULTURAL FINANCE

THARAKA UNIVERSITY




UNIVERSITY EXAMINATIONS
FIRST YEAR EXAMINATION FOR THE AWARD OF MASTER OF SCIENCE IN
AGRIBUSINESS MANAGEMENT
SEPTEMBER/DECEMBER 2022/2023
MAIN EXAM
AGBM 851: AGRICULTURAL FINANCE
STREAMS: MSc. AGRIBUSINESS MANAGEMENT (Y1S1)
TIME: 3 HOURS

INSTRUCTIONS:
 Answer any THREE questions
 Do not write anything on this question paper

1. a. Outline the importance of credit to agricultural development (10marks)
b. Magu Farm Manager is contemplating to acquire credit for his farm business. Discuss
the five possible formal sources of credit at his disposal (10marks)
2. a. Explain the importance of credit management (10marks)
b. Financial intermediaries are important players in credit supply and management. Justify
the statement (10marks)
3. a. Describe the five roles of interest rates in domestic and external borrowing, and
agricultural development (10marks)
b. Describe the five informal sources of credit to farmers (10marks)
4. a. Discuss the various methods of capital budgeting (10marks)
b. Explain the disadvantages of credit (10marks