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

Leave a Reply

MEET OVER 2000 NOUN STUDENTS HERE. 

Join us for latest NOUN UPDATES and Free TMA answers posted by students on our Telegram. 

OUR ONLINE TUTORIAL CLASS IS NOW ON!!! JOIN US NOW. 
JOIN NOW!
close-link
%d bloggers like this: