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

A. Allocating jobs only in urban areas

B. Ensuring no unemployment at all

C. Achieving a state with no involuntary unemployment

D. Subsidizing all underemployed workers

2 / 40

2. The main function of the Central Bank is:

A. Regulation and supervision of the banking system

B. Encouraging international trade exclusively

C. Issuing mortgages

D. Providing short-term loans

3 / 40

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

A. Manufacturing and heavy industries

B. Infrastructure development in urban centers

C. Agricultural projects and allied industries

D. Residential real estate financing

4 / 40

4. 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

5 / 40

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

A. Broadening technological funding in agriculture alone

B. Minimizing fiscal incentives to local governments

C. Enhancing infrastructure like power supply

D. Deregulating employment rights for firms

6 / 40

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

A. Absence of natural resources

B. Lack of foreign investments

C. Over-reliance on oil

D. Excessive agricultural exports

7 / 40

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

A. High export tariffs

B. Lack of arable land

C. Over-dependence on manual farming methods

D. Limited natural resources

8 / 40

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

A. South-West Nigeria

B. Northern Nigeria

C. Niger Delta

D. South-East Nigeria

9 / 40

9. Open market operations in monetary policy involve:

A. Adjusting consumer price indices

B. Buying or selling government securities

C. Monitoring inflation exclusively

D. Controlling government expenditure

10 / 40

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

A. Federal Inland Revenue Service

B. Ministry of Finance

C. Nigerian Stock Exchange

D. Central Bank of Nigeria

11 / 40

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

A. Complete absence of production structures

B. Technological dominance of wealthier states

C. Selective or weak enforcement of regulations

D. Global dependence on extractive economies

12 / 40

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

A. Oil boom

B. Technological advancements

C. Diversification into agriculture

D. Industrial revolution

13 / 40

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

A. Liberalization of the economy

B. Expansion of public enterprises

C. Reduced foreign debt

D. Increased government control of industries

14 / 40

14. Bidirectional causality in institutions and economic structures means:

A. Structural change ignores institutional contexts

B. Institutions cannot adapt to productive structures

C. Economic growth solely determines institutions

D. Growth and institutions influence each other

15 / 40

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

A. Promote only domestic economic growth

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

C. Focus solely on crude oil exports

D. Provide short-term cash credit facilities for traders

16 / 40

16. Insurance companies contribute to economic development by:

A. Restricting entrepreneurship through high premium charges

B. Facilitating risk transfer and providing long-term investments

C. Managing urban development policies

D. Enforcing monetary policies on individuals

17 / 40

17. Monetary policy is primarily implemented by:

A. Commercial banks

B. The central bank

C. International organizations

D. Government ministries

18 / 40

18. A robust production structure can drive growth by:

A. Suppressing changes in occupational markets

B. Creating economic activities with increasing returns

C. Reducing innovation cycles across industries

D. Avoiding structural transformation

19 / 40

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

A. Facilitate housing finance and home ownership

B. Act as an intermediary for government funds

C. Manage agricultural loans

D. Handle foreign investments exclusively

20 / 40

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

A. Equalize the cost of goods across different regions

B. Prevent innovation costs from affecting consumers

C. Allow unlimited market-driven price changes

D. Eliminate unnecessary price fluctuations for stability

21 / 40

21. Commercial banks in Nigeria primarily distinguish themselves by

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

B. Managing only large-scale industrial accounts

C. Accepting deposits withdrawable by cheque

D. Solely creating employment opportunities

22 / 40

22. Higher aggregate demand due to wage increments would:

A. Eliminate liquidity risks in poorly structured sectors

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

C. Cancel fiscal deficits in oil-importing regions

D. Stabilize industrial output levels immediately

23 / 40

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

A. 1980

B. 1960

C. 1959

D. 1973

24 / 40

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

A. Petroleum sector

B. Industrial sector

C. Service sector

D. Agricultural sector

25 / 40

25. A progressive tax system aims to

A. Limit economic development in urban regions

B. Eliminate unemployment directly

C. Reduce inequality by taxing higher-income groups more

D. Tax all income levels equally

26 / 40

26. A progressive tax system aims to:

A. Eliminate unemployment directly

B. Reduce inequality by taxing higher-income groups more

C. Limit economic development in urban regions

D. Tax all income levels equally

27 / 40

27. Structural unemployment in Nigeria is triggered by:

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

B. Ineffective tax implementation for industries

C. Overspecialization in agricultural technology

D. Increased urban growth balancing economic spending

28 / 40

28. Development banks differ from commercial banks by:

A. Operating without government oversight

B. Avoiding risky agricultural investments

C. Focusing solely on profit-making services

D. Offering loans for long-term economic growth

29 / 40

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

A. Green Revolution

B. Vision 2020

C. National Economic Empowerment Development Strategy (NEEDS)

D. Structural Adjustment Program (SAP)

30 / 40

30. Institutions of production include

A. Extractive political systems

B. Regulation of educational systems

C. Tariffs, subsidies, and industrial policies

D. Rule of law and property rights

31 / 40

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

A. Production levels in agriculture

B. The supply of money and credit in the economy

C. Income distribution among citizens

D. Market prices of luxury goods

32 / 40

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

A. Creation of widespread employment opportunities

B. Decrease in urbanization

C. Neglect of other sectors like agriculture

D. Reduced government revenue

33 / 40

33. A balanced balance of payments means that:

A. Trade restrictions reduce economic inequality

B. Imports and exports are equal

C. Exports exceed imports significantly

D. Excessive imports dominate foreign trade

34 / 40

34. Equitable distribution of income implies:

A. Identical income levels for all citizens

B. Increasing inequality for higher economic growth

C. Distributing income only among rural areas

D. Ensuring fairness and equal opportunities in income distribution

35 / 40

35. Merchant banks are also referred to as:

A. Mortgage centers

B. Cooperative institutions

C. Insurance houses

D. Acceptance houses

36 / 40

36. A decreasing returns economic structure involves

A. Low-value, technologically simple commodities

B. Commodities that always cause structural transformation

C. High-value, technologically advanced commodities

D. High capital investment only in services

37 / 40

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

A. Fiscal policies are robust in non-oil revenues

B. Liquidity automatically reduces unemployment

C. It creates instability in long-term trade

D. Productivity and inflation do not balance

38 / 40

38. Economic growth under monetary policy focuses on:

A. Reducing trade competition through taxes

B. Increasing per capita income over time

C. Constantly increasing employment at all costs

D. Accumulating gold reserves exclusively

39 / 40

39. The Urban Development Bank of Nigeria focuses on:

A. Offering fiscal advice to rural banks

B. Providing export credit insurance

C. Supporting small-scale agricultural investments

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

40 / 40

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

A. Palm oil

B. Crude oil

C. Cocoa

D. Timber

Your score is

The average score is 48%

ECN 207 CBT PRACTICE

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