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 ECN 207 exam

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

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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ECN 207

1 / 40

1. A progressive tax system aims to

A. Limit economic development in urban regions

B. Reduce inequality by taxing higher-income groups more

C. Tax all income levels equally

D. Eliminate unemployment directly

2 / 40

2. Structural unemployment in Nigeria is triggered by:

A. Increased urban growth balancing economic spending

B. High minimum wage attracting more workers but reducing labor demand

C. Overspecialization in agricultural technology

D. Ineffective tax implementation for industries

3 / 40

3. What is a major challenge in the Nigerian agricultural sector?

A. Lack of arable land

B. Limited natural resources

C. Over-dependence on manual farming methods

D. High export tariffs

4 / 40

4. The primary goal of monetary policy is to manage:

A. Production levels in agriculture

B. Income distribution among citizens

C. The supply of money and credit in the economy

D. Market prices of luxury goods

5 / 40

5. Nigeria’s current minimum wage impact is suboptimal because:

A. Fiscal policies are robust in non-oil revenues

B. It creates instability in long-term trade

C. Productivity and inflation do not balance

D. Liquidity automatically reduces unemployment

6 / 40

6. Effective growth of non-oil sectors in Nigeria requires:

A. Enhancing infrastructure like power supply

B. Minimizing fiscal incentives to local governments

C. Broadening technological funding in agriculture alone

D. Deregulating employment rights for firms

7 / 40

7. Full employment, as an objective of monetary policy, refers to:

A. Achieving a state with no involuntary unemployment

B. Allocating jobs only in urban areas

C. Subsidizing all underemployed workers

D. Ensuring no unemployment at all

8 / 40

8. Commercial banks in Nigeria primarily distinguish themselves by

A. Managing only large-scale industrial accounts

B. Accepting deposits withdrawable by cheque

C. Solely creating employment opportunities

D. Offering short-term, medium-term, and long-term project financing

9 / 40

9. Insurance companies contribute to economic development by:

A. Facilitating risk transfer and providing long-term investments

B. Enforcing monetary policies on individuals

C. Restricting entrepreneurship through high premium charges

D. Managing urban development policies

10 / 40

10. Excessive money supply leading to a balance of payments deficit results in:

A. Growth in international reserves

B. Reduced reliance on international trade

C. Increased domestic demand for foreign goods

D. Strengthened local currency value

11 / 40

11. What policy was introduced to stabilize the Nigerian economy during the 1980s?

A. Green Revolution

B. National Economic Empowerment Development Strategy (NEEDS)

C. Vision 2020

D. Structural Adjustment Program (SAP)

12 / 40

12. Which sector was the mainstay of the Nigerian economy during the pre-colonial era?

A. Industrial sector

B. Agricultural sector

C. Petroleum sector

D. Service sector

13 / 40

13. Economic growth under monetary policy focuses on:

A. Accumulating gold reserves exclusively

B. Constantly increasing employment at all costs

C. Increasing per capita income over time

D. Reducing trade competition through taxes

14 / 40

14. Equitable distribution of income implies:

A. Distributing income only among rural areas

B. Increasing inequality for higher economic growth

C. Ensuring fairness and equal opportunities in income distribution

D. Identical income levels for all citizens

15 / 40

15. What is one significant impact of the oil sector on the Nigerian economy?

A. Neglect of other sectors like agriculture

B. Creation of widespread employment opportunities

C. Decrease in urbanization

D. Reduced government revenue

16 / 40

16. Higher aggregate demand due to wage increments would:

A. Eliminate liquidity risks in poorly structured sectors

B. Stabilize industrial output levels immediately

C. Cancel fiscal deficits in oil-importing regions

D. Result in price instability if output fails to match demand

17 / 40

17. Development banks differ from commercial banks by:

A. Avoiding risky agricultural investments

B. Operating without government oversight

C. Focusing solely on profit-making services

D. Offering loans for long-term economic growth

18 / 40

18. Economic structures are fundamental because they:

A. Replace institutions in growth-focused economies

B. Guarantee technological development

C. Always increase GDP growth rates

D. Determine productive capabilities and performance

19 / 40

19. The main function of the Central Bank is:

A. Encouraging international trade exclusively

B. Providing short-term loans

C. Regulation and supervision of the banking system

D. Issuing mortgages

20 / 40

20. What is a major effect of the Structural Adjustment Program on the Nigerian economy?

A. Expansion of public enterprises

B. Increased government control of industries

C. Reduced foreign debt

D. Liberalization of the economy

21 / 40

21. A decreasing returns economic structure involves

A. High capital investment only in services

B. Low-value, technologically simple commodities

C. Commodities that always cause structural transformation

D. High-value, technologically advanced commodities

22 / 40

22. The Nigerian Agricultural and Cooperative Bank (NACB) primarily supports:

A. Infrastructure development in urban centers

B. Agricultural projects and allied industries

C. Residential real estate financing

D. Manufacturing and heavy industries

23 / 40

23. A robust production structure can drive growth by:

A. Creating economic activities with increasing returns

B. Reducing innovation cycles across industries

C. Avoiding structural transformation

D. Suppressing changes in occupational markets

24 / 40

24. Inclusive institutions in underdeveloped countries are limited due to:

A. Technological dominance of wealthier states

B. Global dependence on extractive economies

C. Complete absence of production structures

D. Selective or weak enforcement of regulations

25 / 40

25. The primary purpose of the Federal Mortgage Bank of Nigeria (FMBN) is to:

A. Manage agricultural loans

B. Act as an intermediary for government funds

C. Facilitate housing finance and home ownership

D. Handle foreign investments exclusively

26 / 40

26. Price stability as a goal of monetary policy aims to:

A. Prevent innovation costs from affecting consumers

B. Allow unlimited market-driven price changes

C. Eliminate unnecessary price fluctuations for stability

D. Equalize the cost of goods across different regions

27 / 40

27. The Central Bank of Nigeria (CBN) was established in:

A. 1980

B. 1960

C. 1959

D. 1973

28 / 40

28. Which institution is primarily responsible for monetary policy in Nigeria?

A. Central Bank of Nigeria

B. Federal Inland Revenue Service

C. Nigerian Stock Exchange

D. Ministry of Finance

29 / 40

29. Which region of Nigeria is most associated with crude oil production?

A. Niger Delta

B. South-East Nigeria

C. South-West Nigeria

D. Northern Nigeria

30 / 40

30. The Urban Development Bank of Nigeria focuses on:

A. Providing export credit insurance

B. Solving urban challenges like housing, transportation, and utilities

C. Offering fiscal advice to rural banks

D. Supporting small-scale agricultural investments

31 / 40

31. What is the primary export commodity of Nigeria in the post-independence era?

A. Timber

B. Cocoa

C. Palm oil

D. Crude oil

32 / 40

32. Merchant banks are also referred to as:

A. Acceptance houses

B. Mortgage centers

C. Cooperative institutions

D. Insurance houses

33 / 40

33. Which of the following is a key issue affecting the Nigerian economy?

A. Absence of natural resources

B. Over-reliance on oil

C. Excessive agricultural exports

D. Lack of foreign investments

34 / 40

34. Monetary policy is primarily implemented by:

A. International organizations

B. Commercial banks

C. The central bank

D. Government ministries

35 / 40

35. A balanced balance of payments means that:

A. Excessive imports dominate foreign trade

B. Exports exceed imports significantly

C. Trade restrictions reduce economic inequality

D. Imports and exports are equal

36 / 40

36. Institutions of production include

A. Rule of law and property rights

B. Extractive political systems

C. Regulation of educational systems

D. Tariffs, subsidies, and industrial policies

37 / 40

37. Open market operations in monetary policy involve:

A. Monitoring inflation exclusively

B. Controlling government expenditure

C. Adjusting consumer price indices

D. Buying or selling government securities

38 / 40

38. A progressive tax system aims to:

A. Reduce inequality by taxing higher-income groups more

B. Eliminate unemployment directly

C. Limit economic development in urban regions

D. Tax all income levels equally

39 / 40

39. The Nigerian Export-Import Bank (NEXIM) was created to:

A. Focus solely on crude oil exports

B. Provide short-term cash credit facilities for traders

C. Diversify Nigeria’s export base and encourage non-oil exports

D. Promote only domestic economic growth

40 / 40

40. What led to the structural transformation of the Nigerian economy in the 1970s?

A. Industrial revolution

B. Oil boom

C. Technological advancements

D. Diversification into agriculture

Your score is

The average score is 48%

ECN 207 CBT PRACTICE

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