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CBT TEST

ECN 207 CBT PRACTICE

Phil

January 16, 2025

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

A. Absence of natural resources

B. Excessive agricultural exports

C. Over-reliance on oil

D. Lack of foreign investments

2 / 40

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

A. Manage agricultural loans

B. Facilitate housing finance and home ownership

C. Handle foreign investments exclusively

D. Act as an intermediary for government funds

3 / 40

3. Open market operations in monetary policy involve:

A. Buying or selling government securities

B. Controlling government expenditure

C. Adjusting consumer price indices

D. Monitoring inflation exclusively

4 / 40

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

A. Technological dominance of wealthier states

B. Complete absence of production structures

C. Global dependence on extractive economies

D. Selective or weak enforcement of regulations

5 / 40

5. A decreasing returns economic structure involves

A. Low-value, technologically simple commodities

B. High capital investment only in services

C. High-value, technologically advanced commodities

D. Commodities that always cause structural transformation

6 / 40

6. 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

7 / 40

7. Economic structures are fundamental because they:

A. Replace institutions in growth-focused economies

B. Always increase GDP growth rates

C. Guarantee technological development

D. Determine productive capabilities and performance

8 / 40

8. Monetary policy is primarily implemented by:

A. The central bank

B. International organizations

C. Commercial banks

D. Government ministries

9 / 40

9. Merchant banks are also referred to as:

A. Acceptance houses

B. Mortgage centers

C. Cooperative institutions

D. Insurance houses

10 / 40

10. A progressive tax system aims to:

A. Eliminate unemployment directly

B. Tax all income levels equally

C. Reduce inequality by taxing higher-income groups more

D. Limit economic development in urban regions

11 / 40

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

A. Central Bank of Nigeria

B. Federal Inland Revenue Service

C. Ministry of Finance

D. Nigerian Stock Exchange

12 / 40

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

A. Decrease in urbanization

B. Reduced government revenue

C. Neglect of other sectors like agriculture

D. Creation of widespread employment opportunities

13 / 40

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

A. Allow unlimited market-driven price changes

B. Eliminate unnecessary price fluctuations for stability

C. Equalize the cost of goods across different regions

D. Prevent innovation costs from affecting consumers

14 / 40

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

A. Infrastructure development in urban centers

B. Agricultural projects and allied industries

C. Manufacturing and heavy industries

D. Residential real estate financing

15 / 40

15. A robust production structure can drive growth by:

A. Reducing innovation cycles across industries

B. Suppressing changes in occupational markets

C. Avoiding structural transformation

D. Creating economic activities with increasing returns

16 / 40

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

A. Ensuring no unemployment at all

B. Achieving a state with no involuntary unemployment

C. Allocating jobs only in urban areas

D. Subsidizing all underemployed workers

17 / 40

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

A. Increased government control of industries

B. Expansion of public enterprises

C. Reduced foreign debt

D. Liberalization of the economy

18 / 40

18. The Urban Development Bank of Nigeria focuses on:

A. Supporting small-scale agricultural investments

B. Offering fiscal advice to rural banks

C. Providing export credit insurance

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

19 / 40

19. A balanced balance of payments means that:

A. Trade restrictions reduce economic inequality

B. Excessive imports dominate foreign trade

C. Exports exceed imports significantly

D. Imports and exports are equal

20 / 40

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

A. Over-dependence on manual farming methods

B. Limited natural resources

C. Lack of arable land

D. High export tariffs

21 / 40

21. Economic growth under monetary policy focuses on:

A. Reducing trade competition through taxes

B. Constantly increasing employment at all costs

C. Increasing per capita income over time

D. Accumulating gold reserves exclusively

22 / 40

22. Insurance companies contribute to economic development by:

A. Facilitating risk transfer and providing long-term investments

B. Restricting entrepreneurship through high premium charges

C. Managing urban development policies

D. Enforcing monetary policies on individuals

23 / 40

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

A. Industrial revolution

B. Technological advancements

C. Oil boom

D. Diversification into agriculture

24 / 40

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

A. Growth in international reserves

B. Strengthened local currency value

C. Increased domestic demand for foreign goods

D. Reduced reliance on international trade

25 / 40

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

A. Liquidity automatically reduces unemployment

B. It creates instability in long-term trade

C. Fiscal policies are robust in non-oil revenues

D. Productivity and inflation do not balance

26 / 40

26. Structural unemployment in Nigeria is triggered by:

A. Overspecialization in agricultural technology

B. Increased urban growth balancing economic spending

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

D. Ineffective tax implementation for industries

27 / 40

27. Commercial banks in Nigeria primarily distinguish themselves by

A. Solely creating employment opportunities

B. Accepting deposits withdrawable by cheque

C. Managing only large-scale industrial accounts

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

28 / 40

28. Development banks differ from commercial banks by:

A. Avoiding risky agricultural investments

B. Focusing solely on profit-making services

C. Operating without government oversight

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. Structural Adjustment Program (SAP)

D. National Economic Empowerment Development Strategy (NEEDS)

30 / 40

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

A. South-East Nigeria

B. Niger Delta

C. Northern Nigeria

D. South-West Nigeria

31 / 40

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

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

B. Focus solely on crude oil exports

C. Promote only domestic economic growth

D. Provide short-term cash credit facilities for traders

32 / 40

32. Equitable distribution of income implies:

A. Ensuring fairness and equal opportunities in income distribution

B. Increasing inequality for higher economic growth

C. Identical income levels for all citizens

D. Distributing income only among rural areas

33 / 40

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

A. 1959

B. 1980

C. 1973

D. 1960

34 / 40

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

A. Deregulating employment rights for firms

B. Minimizing fiscal incentives to local governments

C. Enhancing infrastructure like power supply

D. Broadening technological funding in agriculture alone

35 / 40

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

A. Timber

B. Palm oil

C. Cocoa

D. Crude oil

36 / 40

36. 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

37 / 40

37. 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

38 / 40

38. A progressive tax system aims to

A. Reduce inequality by taxing higher-income groups more

B. Tax all income levels equally

C. Limit economic development in urban regions

D. Eliminate unemployment directly

39 / 40

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

A. Service sector

B. Industrial sector

C. Agricultural sector

D. Petroleum sector

40 / 40

40. Bidirectional causality in institutions and economic structures means:

A. Economic growth solely determines institutions

B. Growth and institutions influence each other

C. Institutions cannot adapt to productive structures

D. Structural change ignores institutional contexts

Your score is

The average score is 48%

ECN 207 CBT PRACTICE

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