BFN304 TMA Questions

BFN304 List of Questions

Q1 The peculiar features of Islamic banking system include
Prohibition of Interest
Low Consumer Lending
Profit and Loss Sharing
all of the above

Q2 a scenario where insurance company invests generated premiums in stock or bond portfolio earning a return for the investors is called
Guaranteed Investment Contracts
Structured Settlements
annuities
none of the above

Q3 An insurance over the account receivable of an insured is called
trade credit insurance
trade debtors’ insurance
liability insurance
none of the above

Q4 the policy that insures against risk of litigation
litigation insurance
liability insurance
legal insurance
all of the above

Q5 Islamic banks usually provide overdrafts, subject to a certain maximum, free of charge
false
never
true
undecided

Q6 The discernible differences between the conventional banks and Islamic banks include all but one
Prohibition of Interest
Emphasis on Islamic Principles of Morality
None of the above
Emphasis on Project Variability

Q7 Islamic banks have Lower Solvency Risk than their conventional counterparts
false
true
undecided
none of the above

Q8 Fundamentally, Islamic law prohibits the collection and payment of interest (usury), which is also commonly called
Riba
Raba
Rabe
Rabi

Q9 The system of Islamic banking is different from the conventional banking sysem because it is a system of banking operations that are carried out based on the provisions of Islamic law called the
Jaiz
shariah
A and B
none of the above

Q10 ………. covers the excess amount on a auto loan in an instance where your insurance company does not cover the entire loan
General insurance
life insurance
gap insurance
comprehensive insurance

Q11 common charateristics of riks insured include the following except
indefinite loss
accidental loss
large loss
all of the above

Q12 A business organizations that carry on business in order to bear the risks of other companies in any economy is called
Insurance comapnies
enterprise risk agents
brokers
all of the above

Q13 A form of collective investment that is constituted under a trust deed is called
suntrust investment
Unit trust investment
investment company
all of the above

Q14 ……. is a body corporate whose main business is holding securities of other companies purely for investment purposes
development banks
investment banks
investment company
all of the above

Q15 Reasons for the marketing of bank services include the following except
Quantity as a Key Factor
Growing Competition
Awareness among Customers
all of the above

Q16 Strategic marketing of banking services in relation to environmental demands requires the following steps
Identifying customers�?? financial needs
Developing appropriate banking services to meet these needs
Pricing for the services so developed
all of the above

Q17 The rural banking scheme was unprintable in its operations because of the fixed overhead cost that could not be sustained by its returns
True
false
all of the above
undecided

Q18 Rural banking scheme was introduced in Nigeria in …..
1967
1977
1987
1997

Q19 the banking system in which all financial products are available under one roof is called
Commercial banking
international banking
universal banking
merchant banking

Q20 while commercial banks operate as retail banks, merchant banks serve as
bankers bank
wholesale banks
Apex banks
none of the above

Q21 the share capital of the bank is the first item which is contributed by its share holders and is a liability to the bank
true
false
undecided
all of the above

Q22 The liabilities of a commercial banks are the items which form the sources of its funds.
false
true
undecided
all of the above

Q23 Cash reserve does not yield income to the bank but are essential to satisfy the claims of its …..
debtors
creditors
depositors
all of the above

Q24 In preparing the balance sheet of a bank, which of the following items comes first
cash
debtors
creditors
land

Q25 the balance sheet of a commercial banks as formerly called shows the statement of
income and expenditure
assets and liabilities
profit and loss accounts
all of the above

Q26 when a bank collects its cheques, bills of exchange, drafts, dividends into their accounts, it is performing
collecting services
payment services
fiduciary services
agency services

Q27 The very short-term loans advanced to the bill broker for not more than fifteen days is called
call loans
cash loan
credit loan
all of the above

Q28 in cash credit, the amount of the loan is credited to the borrower’s
savings account
deposit account
current account
all of the above

Q29 The functions of commercial banks include the following except
accepting deposits
advancing loans
credit creation
gold reserves

Q30 The first bank in’ the modern sense was established in the Bengal Presidency as the Bank of Bengal in
1606
1706
1806
1906

Q31 the French word ‘Banque and the Italian word ??Banca means bank
true
false
undecided
none of the above

Q32 There was no such word as ‘banking’ before
1540
1640
1740
1840

Q33 The fisrt bank of Nigeria is formerly called …….
Standard chartered
standard trust bank
barclays bank
none of the above

Q34 The rate fixed by the central bank at which it rediscounts first class bills of exchange and government securities held by the commercial banks is called
bank rate
discount rate
rediscount rate
all of the above

Q35 in cash credit, the amount of the loan is credited to the borrower’s
savings account
deposit account
current account
all of the above

Q36 The central bank adopts two types of methods of credit control. They are the ………
Debt and equity
flexible and regid
quantitative and qualitative methods
all of the above

Q37 Credit control is the means to control the lending policy of commercial banks by the
Central bank
Merchant bank
Development bank
all of the above

Q38 The central bank is the custodian of the foreign currencies of the country while the commercial bank is a
stabilizer in FX
banker in FX
regulator in FX
dealer in FX

Q39 The central bank is owned by the government, whereas the commercial bank is owned
investors
debentureholders
shareholders
all of the above

Q40 the basic differences between the central bank and a commercial bank are in terms of their structure and …..
capital
operations
asset
none of the above

Q41 The apex bank of Nigeria was established in
1939
1949
1959
1969

Q42 The apex bank of any economy is called
development bank
Central bank
commercial banks
Development bank

Q43 what are described as short-term debt obligations of a national government that are issued to mature in three months.
Treasury bills
treasury certificates
treasury bonds
all of the above

Q44 All but one is not a participant of the Finacial market
Commercial banks
investment banks
merchant banks
None of the above

Q45 LIBOR means, London Interbank Offer
Rate
Rule
Rent
None of the above

Q46 All but one is a money market instrument
Treasury bills
treasury certificates
bankers acceptances
commercial bonds

Q47 A market for shor term funds is called
Securities market
Money market
cash market
primary market

Q48 The interest paid on the nominal amount of capital market securities is called
nominal rate
Bond rate
coupon rate
capital rate

Q49 The principal capital market instruments include all but
morgages
corporate bonds
governement bonds
treasury bonds

Q50 a market where existing securities are sold and bought among investors is called ……..
Primary market
secondary market
tertiary market
A and B only

Q51 Government bonds are commonly referred to as
gilt-edged
eagle- edged
treasury bonds
None of the above

Q52 All but one is an operator of capital market
Investment bank
Pension funds
commercial banks
hedge funds

Q53 Capital market is a market for ……………..
Short term funds
Medium term funds
Long term funds
Both B and C

Q54 Financial Market exists for the purpose of mobilization of funds, which are transmitted from the surplus sector of the economy to the
suppliers
lending unit
B and D
deficit unit

Q55 ……….are long-term loans that are secured by real property
Term loans
Mortgages
Overdrafts
Leases

Q56 As financial assets in Japan are denominated in Yen, those of China are denominated in ……..
Naira
Dollar
Yuan
None of the above

Q57 There are some financial instruments being traded in the financial markets that may not reach the stated maturity dates before they are terminated by the corporate entities because of reasons such as
all of the above
bankruptcy
Reorganisation
call provision

Q58 A bond can be held by a corporate entity for a period of thirty (30) years while that of government can extend to a period of
59years
69years
79years
99years

Q59 The risk involved in market making is related to market forces that are twofold such as: Variability of the price and
reversability of the market
Thickness of the market
Divisibility of the market
all of the above

Q60 what are the financial instruments that are being used in the financial markets to raise equity funds by corporate entities
Bonds
Treasury Bills
Debentures
Equity instruments

Q61 The reform of the foreign exchange market, which until then was also controlled, began in
1986
1987
1988
1989

Q62 FSCC as an acronynm for
Financial services cooperating Committee
Finance services Coordinating committee
Financial services Coordinating Conference
Financial Services Coordinating Committe

Q63 The apex Bank of Nigeria was established by CBN act of
1958
1959
1969
1968

Q64 NAICOM was established to replace
NIS
DMO
NISB
NISS

Q65 NDIC commenced operations effectively in ……….
1979
1989
1999
None of the above

Q66 The Securities and exchange commission was formerly called
Nigerian Stock Commission
Exchange Issue commission
Share captial commission
Capital Issue Commission

Q67 The expansion phase of the Nigerian evolutionary trend took place within the period of
1970 �?? 1985
1960-1975
1970-1975
1970-1980

Q68 the consolidation and reform phase of the evolution of Nigerian financail system coinceded with
Bank Consolidation era
Expansion programme
Structural Adjustment Programme
All of the above

Q69 The following are regional institutions that also participate in international financial system except
European Banking Authority
Commonwealth of Independent States
North American Free Trade Agreement
European trade zone

Q70 The international financial system consists of institutions, their customers, and financial regulators that interact and operate on at
developed stage
global stage
developing stage
mutual stage

Q71 which of the following is not an intrument traded in money market
treasury Bills
treasury certificates
treasury bonds
promissory notes

Q72 Corporate Bond is an example of instrument traded in
Capital market
Money market
Government market
Corporate market

Q73 The financial markets are in two categories, which include the capital market and
Circulating capital
none of the above
fixed capital
floating capital

Q74 Financial intermidiaries include………..
insurance Companies
Commercial banks
merchant banks
All of the above

Q75 Suppliers of funds constitutes the surplus sector while the users of funds constitutes the………
developed sector
developing sector
deficit sector
diliquent sector

Q76 In the process of raising funds, the corporate entities and institutions make use of the following financial instruments except
shares
corporate funds
treasury bills
promissory notes

Q77 The following are all components of the financial system except
Financial markets
Financial intermediaries
Financial instruments
Financial flow

Q78 The mutual interactions between savings-surplus and deficit units within the economy provide the opportunity for utilization of varied
financial instruments
Financial structure
Financial flow
Financial leverage

Q79 The financial system of interactions creates financial assets from the surplus unit of the economy and financial liabilities for
the savings sector
the credit sector
deliquent unit of the economy
the deficit unit of the economy

Q80 The financial sector refers majorly to the financial intermediaries and facilitating institutions involved in the promotion of ——————–
cashflows in the economy
Financial devaluation in an economy
financial flows in the economy
sectoral growth in an economy

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