BFN203 e-exam (2019)

Question: Investment is also recognized as the of financial resources towards enhancing a persons
income or increasing the level of earnings from invesible products in the future
Answer:Deployment
Question: An investment Involves of funds in acquisition of financial assets
Answer:Utilization
Question: The fundamental purpose of investment is to generate
Answer:Earning
Question: Safety of investment can only be guaranteed if is done in financial products such as and with
high networth
Answer:Government Secuirty Firms
Question: means the ease with which an investment can be converted into cash
Answer:Liquidity
Question: refer to money market financial instruments that are easily convertible to physical cash
Answer:Marketable securities
Question: are obligations of the government
Answer:Treasury securities
Question: A refers to a financial product which has its value dependent on the outcome of the original
financial product as investment by the managers of the funds
Answer:Derivative
Question: involves investment in buying or building houses apartments and other landed property with
the purpose of leasing them out
Answer:Real Estate
Question: refers to short term debt obligation that is taken by the government through the apex bank
Answer:Treasury Bill
Question: Formulating business idea is very time consuming which goes through
Answer:Refinement
Question: is regarded as the key stage in the new venture process
Answer:Opportunity Recognition
Question: involves establishing the management structure of the venture with which to steer the affairs
and ensure success and profitable operations of the business
Answer:organization stage
Question: The constitutes the driving force for the recognition of a venture idea
Answer:entrepreneur
Question: Another important responsibility of the entrepreneur in venture creation involves the
packaging a detailed for the venture
Answer:Business plan
Question: A crucial responsibility of the entrepreneur in venture creation involves generating the
needed resources for the new venture
Answer:Financial material
Question: Another crucial responsibility of the entrepreneur in venture creation involves theof the new
venture
Answer:Management
Question: refers to an action initiated for starting business venture with the intent of filling the gap
between an initiative and a capitalized business
Answer:venture creation
Question: The initial or seed money as opined by is normally required for market research product
development and building management infrastructure
Answer:Swier 2007
Question: The has the onerous task of taking decisions on the future potentials of the business which
enables him to project the future growth and development
Answer:entrepreneur
Question: buys undervalued securities while he sells overvalued ones out of his investment portfolio in
the capital market In
Answer: value investor
Question: is regarded as one of the basic building blocks of a solid portfolio
Answer:Investment diversification
Question: In finance the major benefit from investment is the return on the invested
Answer:funds
Question: A value investor buys undervalued securities while he sells overvalued ones out of his
investment in the capital market
Answer:portfolio
Question: Investment is regarded as one of the basic building blocks of a solid portfolio
Answer:diversification
Question: These are risk and unsystematic risk
Answer:systemic
Question: The risk is specific to a company industry market economy or country
Answer:
Question: the aim of diversification is to invest in various so that they will not all be affected the same
way by market events
Answer: assets
Question: Portfolio is achieved by placing a larger percentage of high return investments in a diversified
portfolio
Answer:optimization
Question: Investment involves allocating your fund or money in securities
Answer:investible
Question: The risk is specific to a company industry market economy or country it can be reduced
through diversification
Answer:B: unsystematic
Question: is associated with the clich that you should not put all your eggs in one basket
Answer:Diversification
Question: Which of the following is not a type of commodty for investment
Answer:None of the above
Question: There are mainly types of risk that are associated with investment in the capital market
Answer:two
Question: Safety of investment can always be guaranteed
Answer:FALSE
Question: A popular valuation metric iswith application for example to valuing unlisted companies and
mergers and acquisition
Answer:EBITDA
Question: The essence of investment hinges on returns
Answer:expected
Question: refers to the process of converting a new idea or technology into a business undertaking
which can succeed and is invariably capable of attracting investors
Answer:Venture creation
Question: investment involves buying undervalued securities while selling overvalued ones out of the
investment portfolio in the capital market
Answer:Value
Question: is a technique that reduces risk by allocating investments among various financial
instruments industries and other categories
Answer:Diversification
Question: According Gardon there is a remarked difference between capital gains investing and the
game of speculation
Answer:2014
Question: The is a document which sets broad parameters for taxation and ancillary matters connected
with taxation
Answer:National Tax Policy
Question: Owning a current and savings account have the same requirements
Answer:FALSE
Question: is an investment which is undertaking in order to reduce the risk of adverse price movements
in a financial asset
Answer:A hedge
Question: investing is the art of buying and selling an asset for a profit
Answer:Capital gains
Question: repays some or all of a loan when the borrower is insolvent
Answer:Credit insurance
Question: Is a type of tax
Answer:PAYE
Question: The steps involved in personal financial planning process Include all of the following except
Answer:Goal division
Question: are options to purchase common stock at a specified price up to a specified date
Answer:Warrants
Question: Q1 Commercial paper issued with low interest rate thus commercial paper are categorized as
Answer: better credit rating
Question: Q2 Special provisions that can have adverse or beneficial effects and are reflected in interest
rates does not include
Answer: inflation premium
Question: Q3 Legal document required by Securities Exchange Commission stating associated risks and
detailed description of issues is classified as
Answer: prospectus
Question: Q4 In foreign financial markets, growth is represented by factors such as
Answer: all of the above
Question: Q5 Transaction cost of trading of financial instruments in centralized market is classified as
Answer: low transaction costs
Question: Q6 the idea behind a capital adequacy ratio is that banking risk should be borne by
Answer: shareholders
Question: Q7 a sudden demand by depositors for notes and coins is an example of
Answer: liquidity risk
Question: Q8 pension and life insurance funds hold few short terms assets because
Answer: short term assets are too risky
Question: Q9 one of the risks cannot be insured
Answer: unsystematic
Question: Q10 the ability of banks to process enough resources to meet their recurrent obligations from
time to time in banking practice is known as
Answer: liquidity
Question: Q11 Commercial paper issued with low interest rate thus commercial paper are categorized
as
Answer: better credit rating
Question: Q12 Special provisions that can have adverse or beneficial effects and are reflected in interest
rates does not include
Answer: inflation premium
Question: Q13 Legal document required by Securities Exchange Commission stating associated risks and
detailed description of issues is classified as
Answer: prospectus
Question: Q14 In foreign financial markets, growth is represented by factors such as
Answer: all of the above
Question: Q15 Transaction cost of trading of financial instruments in centralized market is classified as
Answer: low transaction costs
Question: Q16 the idea behind a capital adequacy ratio is that banking risk should be borne by
Answer: shareholders
Question: Q17 a sudden demand by depositors for notes and coins is an example of
Answer: liquidity risk
Question: Q18 pension and life insurance funds hold few short terms assets because
Answer: short term assets are too risky
Question: Q19 one of the risks cannot be insured
Answer: unsystematic
Question: Q20 the ability of banks to process enough resources to meet their recurrent obligations from
time to time in banking practice is known as
Answer: liquidity
Question: Q21 Depository institutions such as thrifts includes
Answer: all of above
Question: Q22 objectives of a tax system include the following except
Answer: to prevent corruption
Question: Q23 the material wealth of a society is equal to the sum of
Answer: all real assets
Question: Q24 types of commodities that are dealing in the commodities market include the
following except
Answer: cowries
Question: Q25 for bad debts to be deductible, the following requisite must concur except
Answer: the debt must partially charged-off with in the taxable year
Question: Q26 a bond issue is broken up so that some investors will receive only payment
while others will receive only principal payments which is an example of
Answer: b amp; d
Question: Q27 By hedging a portfolio, a bank manger
Answer: reduces interest rate risk
Question: Q28 what describes the degree to which an asset or security can be quickly sold
or bought in the market without affecting the asset’s price
Answer: liquidity
Question: Q29 A retirement annuity is particularly attractive to someone who has
Answer: high longevity risk
Question: Q30 Diversification is one way in which insurance companies can protect themselves
Answer: Random fluctuation

 

Question FBQ1 : According to economists, investment is regarded as savings embarked upon as a result of ________________
Answer: delayed consumption

Question FBQ2 : Investment requires______ which implies that funds will have to be expended by the person who is investing.
Answer: financial commitments

Question FBQ3 : Arbitrage refers to the practices of taking advantage of a price __________ between two or more financial market
Answer: difference

Question FBQ4 : In finance, an investment involves utilization of funds in acquisition of ________assets
Answer: financial

Question FBQ5 : ________ is regarded as a monetary charge imposed by the government on persons, entities, transactions and properties to yield revenue
Answer: Tax

Question FBQ6 : Financial products floated by the government of a country are known as _______ securities
Answer: gilt-edge

Question FBQ7 : Financial products of high networth companies are regarded as ________ securities
Answer: blue chip

Question FBQ8 : Equity capital refers to the ______ contribution 
Answer: Owner’s

Question FBQ9 : _______ means the ease with which an investment can be converted into cash
Answer: Liquidity

Question FBQ10 : A __________ refers to a financial product which has its value dependent on the outcome of the original financial product as investment by the managers of the funds.
Answer: derivative

Question FBQ11 : Co-operative society as an aggregation of co-operators who_______ their funds together through regular saving 
Answer: pooled

Question FBQ12 : Derivative instruments can be traded over the counter
Answer: True

Question FBQ13 :  Owning a current and savings account have the same requirements
Answer: False

Question FBQ14 : The fundamental purpose of investment is to generate _________
Answer: Earnings Earnings

Question FBQ15 : The individual or entity who subscribe to insurance policy against rises is called ______
Answer: policy holder

Question FBQ16 : Beta neutral approach is one way to
Answer: hedge

Question FBQ17 : Investment is regarded as saving embarked upon as a result of
Answer: Debuted consumption

Question FBQ18 : Real estate ________ is another means of ensuring investment in real estate with some sort of raising equity financing in smaller amount 
Answer: crowding fund

Question FBQ19 : Brokerage is another word for
Answer: Arbitrageur

Question FBQ20 : The payment to the holder of a right or owner of an asset for the using the property is called what? 
Answer: Royalties

Question FBQ21 : Portfolio optimization is achieved by placing a larger percentage of high return investment in a____
Answer: Diversified portfolio

Question FBQ22 : Beta is the historical correlation between a stock and an
Answer: index

Question FBQ23 : Prevailing Price of Stock less Original price is equals to ________
Answer: earning

Question FBQ24 : In venture capital, you do not need to formulate an idea, the idea is already there for you to just take. This statement is______ 
Answer: False

Question FBQ25 : _________ provides some leverage or gearing such that a small movement in the underlying asset value can cause a large difference in the value of the derivative
Answer: Speculation

Question FBQ26 : T-bills normal have a maturity date less than _____ year(s)
Answer: one

Question FBQ27 : What type of derivative is a personalized contract between two parties in which payment takes place at a specific date in the future at today's pre-determined price as agreed upon by both parties? 
Answer: Forwards

Question FBQ28 : ________portfolio is a situation where  investor who is willing to take a given amount of risk can invest more aggressively with a property 
Answer: Non-diversified

Question FBQ29 : Hedging is the practice of taking a_______ in one market of offset and balance against the risk adopted by assuming a position in a contrary market.
Answer: Position

Question FBQ30 : ________ are derivatives in which the contracts to buy or sell a specified asset on a future date at a price specified today
Answer: Futures

Question FBQ31 : _______ is when the buyer has a right to buy a certain quantity of the underlying asset, at a specified price on or before a given date in the future, but he has no obligation to carry out this right
Answer: Call option

Question FBQ32 : ______ is a contract in which the buyer has the right to sell a certain quantity of an underlying asset, at a specified price on or before a given date in the future, but he has no obligation to carry out this right.
Answer: Put option

Question FBQ33 : _______ are derivatives in relation to options that are contracts which provide the owner the opportunity for an “all-or-nothing” profit from the contract
Answer: Binary options

Question FBQ34 : ________ derivatives refer to contracts which involve the exchange of cash (flows) on or before a specified future date
Answer: Swap

Question FBQ35 : _______is provided is when a startup seeks funding in between full venture capital rounds
Answer: Bridge financing

Question MCQ1 : __________ derivatives refer to contracts which involve the exchange of cash (flows) on or before a specified future date 
Answer: Swaps

Question MCQ2 : The main objective of saving account is to promote _________ 
Answer: Savings

Question MCQ3 : Which of the following is not a type of commodity for investment?
Answer: None of the options

Question MCQ4 : ________refers to the process of converting a new idea or technology into a business undertaking which can succeed and is invariably capable of attracting investors. 
Answer: Venture creation

Question MCQ5 : ________ investment involves buying undervalued securities while selling overvalued ones out of the investment portfolio in the capital market 
Answer: Value

Question MCQ6 : ________ is an investment which is undertaking in order to reduce the risk of adverse price movements in a financial asset
Answer: A hedge

Question MCQ7 : ________ is a technique that reduces risk by allocating investments among various financial instruments, industries and other categories
Answer: Diversification

Question MCQ8 : Brokerage is another word for
Answer: Arbitrageur

Question MCQ9 : _______ Is a type of tax 
Answer: PAYE

Question MCQ10 : According Gardon (_______), there is a remarked difference between capital gains investing and the game of speculation
Answer: 2014

Question MCQ11 : _________ are options to purchase common stock at a specified price up to a specified date 
Answer: Warrants

Question MCQ12 : This is a time draft or postdated instrument payable to a seller of goods, with payment guaranteed by a bank 
Answer: Banker’s acceptance

Question MCQ13 : According Gardon (2014), there is a remarked ______ between capital gains investing and the game of speculation
Answer: Difference

Question MCQ14 : A hedge can be constructed from many types of 
Answer: financial instruments

Question MCQ15 : _______ refers to a means with which take protection from financial loss in business generally 
Answer: Insurance

Question MCQ16 : Under the current Nigerian law, taxation is enforced by the which tier of government (a) one (b) five (c) six (d) three
Answer: three

Question MCQ17 : Safety of investment can always be guaranteed
Answer: FALSE

Question MCQ18 : Subrogation is the legal principles of 
Answer: insurance

Question MCQ19 : Missing one of the legs of the trade and subsequently having to trade it soon after at a worse price is called  
Answer: execution risk

Question MCQ20 : The _______ is a document which sets broad parameters for taxation and ancillary matters connected with taxation 
Answer: National Tax Policy

Question MCQ21 : _______investing is the art of buying and selling an asset for a profit 
Answer: Capital gains

Question MCQ22 : Building personal cash flows essential involves the act of saving money towards maintaining cash reserves for future ______ 
Answer: Utilization

Question MCQ23 : _______ refers to the practice of taking advantage of a price difference between two or more financial markets
Answer: Arbritrage

Question MCQ24 : ______ involves contracts that subsist between two parties, which incorporate specific terms
Answer: Derivatives

Question MCQ25 : A popular valuation metric is_______ with application for example to valuing unlisted companies and mergers and acquisition 
Answer: EBITDA

Question MCQ26 : _______ repays some or all of a loan when the borrower is insolvent
Answer: Credit insurance

Question MCQ27 : According to economists, equipment acquired by a firm for production with which to earn income from its operations in the long run is a/an _____? 
Answer: Investment

Question MCQ28 : Tax is a monetary levy imposed on individuals to generate revenue for who?
Answer: The government

Question MCQ29 : ______ products can be used for: insuring against price movements such as in the case of hedging; guiding against exposure to price movements for speculation
Answer: Derivative

Question MCQ30 : Contingency fund can be categorized into ___main areas
Answer: 2

Question MCQ31 : _______ is associated with the cliché that you should “not put all your eggs in one basket.”
Answer: Diversification

Question MCQ32 : There are mainly _____ types of risk that are associated with investment in the capital market
Answer: Two

Question MCQ33 : _______is one of the hardest investments to make because it requires more than just money
Answer: Entrepreneurship

Question MCQ34 : The steps involved in personal financial planning process Include all of the following except _____
Answer: Goal division

Question MCQ35 : The essence of investment hinges on _______ returns
Answer: Expected

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