FIN 104 CBT PRACTICE

Ace/Undergragra 2 weeks ago

0 675 1 minute read

Take your time to read instructions before taking this test.

There are 40 questions which you are to answer in 15 minutes that gives you roughly 30 seconds per question.

If you can get at least 60%, you can be rest assured that you’ll ace FIN 104 exam

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In a normal exam you will be asked between 40 – 60 questions but I only arranged 40 questions

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Note

Do not be in a hurry to answer the questions

Do not waste time on a question you don’t know

Move as fast as possible and starting with questions that don’t have calculation first to save time

Always crosscheck

Don’t be in a hurry to submit, you are not in a competition

Don’t be scared. Getting an A is easy

Don’t be over confident, you can end up a D, E or F. Calm your blood, no be only you sabi book

Please do well to use our comment box incase there’s a message you want to pass to us

70 – 100 A

60 – 69 B

50 – 59 C

45 – 49 D

40 – 44 E

0 – 39 F

I wish you success

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FIN 104

1 / 40

Table of Contents

Who are the marketers of commercial papers?

A. Marketing companies

B. Individuals

C. Commercial Banks

D. Merchant Banks

2 / 40

Which organisation is responsible for issuing Commercial Papers?

A. Merchant Banks

B. Large and reputable companies of unquestionable credit strength

C. Commerical Banks

D. Central Bank of Nigeria

3 / 40

What main advantage has Electronic money over paper money?

A. More acceptable in Nigeria

B. It increases the networth of the holder

C. Confers more authority to spend on the holder

D. Instantaneous and borderless transactions

4 / 40

What is the Present Value Criterion of Investment used for?

A. It is used to evaluate the profitability of an investment project

B. It is used to raise funds for an investment project

C. It is used to evaluate the value of an investment project

D. It is used to measure the cost of an investment project

5 / 40

Pre-Keynesian economists argue that saving and investment are not equal for certain reasons except

A. They also pointed out that the excess of investment over saving has led banks to create new credit

B. savings and investment depend upon different factors and are made for different purposes and motives

C. savings naturally preceed investment

D. They also pointed out that the excess of investment over saving has led banks to create new credit

6 / 40

Which is not a way through which a bill can be discharged?

A. Where there is no express waiver or renunciation by the holder of the bill

B. Where the drawee or acceptor becomes the holder of the bill at or after maturity.

C. Where through merger the acceptor becomes the holder of the bill at or after maturity.

D. Where there is a payment in due course by drawee or acceptor.

7 / 40

What is Interbank Market?

A. It's a market where commercial banks trade on deposits

B. It's an arrangement for monitoring Commercial Bank activities by CBN

C. It is an arrangement that enables banks to balance their liquidity position

D. None of A-C

8 / 40

Which artisan was the advent of paper money associated with?

A. Goldsmith

B. Merchant

C. Bricklayer

D. Blacksmith

9 / 40

Why is thriftiness often seen as a virtue?

A. This is because an inrease in thrift on the part of the individual leads to greater return on investment.

B. . This is because an increase in thrift on the part of an individual leads to greater savings and wealth.

C. This is because an increase in thrift will increase the amount of money in the individual's bank account

D. This is because an increase in thrift will increase an individual's networth.

10 / 40

10.

Who is not a party to a cheque?

A. Drawer

B. Payee

C. Drawee

D. Banker

11 / 40

11.

What do you understand by Negotiable Instrument?

A. They include those instruments used in entertainment in the financial sector.

B. They are near cash instruments that are acceptable means of payments in transactions, as well as for debt settlement.

C. They are alternative money used in payments in all transactions.

D. They are instruments subject to negotiation

12 / 40

12.

What is the main distinguishing feature of a Crossed Cheque?

A. It can be paid through the counter of the bank

B. It is only payable through the bank and not payable over the counter.

C. Does not need endorsement.

D. Has 30 days maturity period.

13 / 40

13.

What then is the paradox of thrift?

A. That if people decide to save more, they may end up saving less, unless if the increase in propensity to save is accompanied by a higher propensity to invest.

B. That if people decide to save less, they may end up saving more, unless if the decrease in propensity to save is accompanied by a lower propensity to invest.

C. That if people decide to save more, they may end up saving less, unless if the increase in propensity to save is accompanied by a higher propensity to invest.

D. That if people decide to save more, they may end up saving less, unless if the increase in propensity to save is accompanied by a lower propensity to invest.

14 / 40

14.

For an investment to be made there are various factors that must considered; which is not one of them?

A. Market rate of interest

B. Expected rate of return

C. Cost of capital asset

D. Foreign direct investment

15 / 40

15.

Money market instruments deal on

A. Loans banks provide for financing

B. Long term financing

C. Provision of venture capital

D. Short term financing

16 / 40

16.

What do you understand by Marginal Efficiency of Capital?

A. This refers to the lowest rate of return expected from an additional unit of a capital asset over its cost

B. This refers to the minimum rate of return expected from an additional unit of a capital asset over its cost

C. This refers to the highest rate of return expected from an additional unit of a capital asset over its cost

D. This refers to the average rate of return expected from an additional unit of a capital asset over its cost

17 / 40

17.

Identify parties in a bill of exchange transaction

A. Drawer, Drawee, Acceptee, Payee, Endorser, Endorsee

B. Drawer, Drawee, Acceptor, Payee, Endorser, Endorsee.

C. Drawer, Drawee, Acceptor, Payee, Payer, Endorser, Endorsee

D. Drawer, Drawee, Acceptor, Payee, Andorser, Endorsee

18 / 40

18.

Although Treasury Certificates are generally similar to Treasury Bills, how do they differ from each other?

A. Issuing organization

B. Maturity period

C. Beneficiaries

D. End users

19 / 40

19.

What’s Negotiable Certificate of Deposit?

A. This is short term instrument sold by banks to depositors

B. It's a certicate issued by the CBN to Commercial Banks to collect deposits from customers

C. It's a document banks issue to large-sum depositors

D. This is long term instrument sold by banks to depositors

20 / 40

20.

Isolate the alternative that is not a Money Market Institution

A. Merchant Banks

B. IMF

C. CBN

D. Bureau de Change

21 / 40

21.

What is Marginal Efficiency of Investment?

A. It is the rate of return expected from a given investment on a fixed asset after covering all its costs

B. It is the rate of return expected from a given investment on a capital asset after covering all its costs, except the rate of interest

C. It is the rate of return expected from a given investment on a capital asset including all its costs, except the rate of interest

D. It is the rate of return expected from a given investment on a money asset after covering all its costs, except the rate of interest

22 / 40

22.

What is Marginal Propensity to Save?

A. The additional disposable income that is consumed

B. The fractional total income that is consumed

C. The additional disposable income that is received

D. The additional disposable income that is saved i.e. not consumed

23 / 40

23.

What do you understand by Investment?

A. It is the sacrifice of certain economic resources for future uncertain benefits in terms of resources

B. . It is the difference between Income and saving

C. It is the total deposits received by an Investment Bank

D. It's the total amount of money one has in the bank

24 / 40

24.

Which is not a type of investment?

A. Inventory Investment

B. Replacement Investment

C. Fixed Investment

D. Moveable Investment

25 / 40

25.

What do you understand by Countermand in relation to cheques?

A. It's a written order, signed by the drawer (i.e. the customer) that is used by a drawer to notify the drawee (i.e. the bank) to stop the payment of a cheque, he had previously issued.

B. It's an order issued by the drawer of the cheque to the payee to present the cheque after an occurrence of a future event.

C. It's a written order, signed by the drawer (i.e. the customer) that is used by a drawer to notify the drawee (i.e. the bank) to pay the payee without delay.

D. It'sa written order, signed by the payee that is used by a drawer to notify the drawee (i.e. the bank) to pay after necessary deductions.

26 / 40

26.

What is Commercial Paper?

A. Short term unsecured prommissory note

B. Document issued by Commercial Banks

C. None of the options

D. It's a security document issued by the Central Bank

27 / 40

27.

Which is not a characteristic of a cheque?

A. The drawer's account need not be correctly specified.

B. It must not be multilated

C. Amounts in words and figure must correspond

D. It must be properly signed by the drawer

28 / 40

28.

How do you define Saving?

A. The amount of money in one's bank account

B. The total amount of money in circulation at a point in time

C. The difference between disposable income and consumption

D. The difference between the productive and monetary secors

29 / 40

29.

What is the main distinguishing feature of an Open Cheque?

A. It cannot be endorsed to another person.

B. Is one that is payable over the counter.

C. Is not payable through the bank

D. Has no limit on the amount casheable

30 / 40

30.

On what basis are bills not classified?

A. Period/Time

B. Purpose

C. Purpoise

D. Documentary backing

31 / 40

31.

Which are the types of Bill Endorsement?

A. Blank, Specialized, Restrictive and Unconditional

B. Blank, Special, Restrictive and Conditional

C. Blank, Special, Unrestrictive and Unconditional

D. Blank, Specialty, Unrestrictive and Conditional

32 / 40

32.

What’s the maturity range of Treasury Bills?

A. 90 days to 180 days

B. 7 days to 30 days

C. 1 week to 6 weeks

D. 30 days to 90 days

33 / 40

33.

What’s the maturity range of Treasury Certificates?

A. 1 - 2 years

B. 30 - 60 days

C. 90 - 180 days

D. 3 - 5 years

34 / 40

34.

Which of the following is not a Money Market Instrument?

A. Negotiable Certificate of Deposit

B. Bankers Unit Fund

C. Long term repurchase agreement

D. Treasury certificates

35 / 40

35.

Mathematically, Net Present Value of an investment is the

A. difference between income and expenditure on an investment

B. difference between total present value of cash outflows and total present value of cash inflows occurring in periods over the entire life of the project

C. total value of all projects the company is involved in

D. the difference between total cash outflows and total cash inflows occurring in periods over the entire life of the project

36 / 40

36.

When is a bill discharged?

A. When all the orders it contains have been carried out.

B. When the bill is of no value again.

C. When nobody is interested in the bill.

D. When limited liability is still attached.

37 / 40

37.

What do you understand by Average Propensity to Save?

A. It is the proportion of total income that is saved

B. It is the proportion of disposable income that is saved

C. It is the proportion of disposable income that is consumed

D. It is the proportion of disposable income that is invested

38 / 40

38.

What is meant by Endorsement of a Bill of Exchange?

A. It is the process of signing a bill of exchange by one person at the full glare of a new holder

B. It is the process of transferring a bill of exchange from one person to another such that the benefits written on the bill becomes payable to the new holder

C. It is the process of writing a bill of exchange from one person to another such that the benefits written on the bill becomes payable to the new holder

D. It is the process of transferring ownership of a bill of exchange from one person to many new beneficiaries at a time.

39 / 40

39.

What do you understand by Money Aggregates?

A. Refers to the several of a country's money

B. Total amount of money in the vault of Central Bank of Nigeria

C. Summation of money with the populace

D. Total money in the banking system

40 / 40

40.

Which organisation is responsible for issuing treasury bills and certificates?

A. Merchant Banks

B. Government Treasuries

C. CBN

D. Commercial Banks

Your score is

The average score is 40%

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Ace/Undergragra 2 weeks ago

0 675 1 minute read

Who are the marketers of commercial papers?

Which organisation is responsible for issuing Commercial Papers?

What main advantage has Electronic money over paper money?

What is the Present Value Criterion of Investment used for?

Pre-Keynesian economists argue that saving and investment are not equal for certain reasons except

Which is not a way through which a bill can be discharged?

What is Interbank Market?

Which artisan was the advent of paper money associated with?

Why is thriftiness often seen as a virtue?

Who is not a party to a cheque?

What do you understand by Negotiable Instrument?

What is the main distinguishing feature of a Crossed Cheque?

What then is the paradox of thrift?

For an investment to be made there are various factors that must considered; which is not one of them?

Money market instruments deal on

What do you understand by Marginal Efficiency of Capital?

Identify parties in a bill of exchange transaction

Although Treasury Certificates are generally similar to Treasury Bills, how do they differ from each other?

What’s Negotiable Certificate of Deposit?

Isolate the alternative that is not a Money Market Institution

What is Marginal Efficiency of Investment?

What is Marginal Propensity to Save?

What do you understand by Investment?

Which is not a type of investment?

What do you understand by Countermand in relation to cheques?

What is Commercial Paper?

Which is not a characteristic of a cheque?

How do you define Saving?

What is the main distinguishing feature of an Open Cheque?

On what basis are bills not classified?

Which are the types of Bill Endorsement?

What’s the maturity range of Treasury Bills?

What’s the maturity range of Treasury Certificates?

Which of the following is not a Money Market Instrument?

Mathematically, Net Present Value of an investment is the

When is a bill discharged?

What do you understand by Average Propensity to Save?

What is meant by Endorsement of a Bill of Exchange?

What do you understand by Money Aggregates?

Which organisation is responsible for issuing treasury bills and certificates?

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