Home CBT TEST ECN 207 CBT PRACTICE

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

Join The General 200 Level Group

https://chat.whatsapp.com/CR3L5APyRwoJw9MEjO9o1m

Join Undergragra Campus Update Channel

Whatsapp: https://whatsapp.com/channel/0029VakX28dFi8xdORrhjI34

Telegram: https://t.me/ugchannel

I remain your favorite education blogger

❤️ Undergragra

ECN 207

1 / 40

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

A. Market prices of luxury goods

B. Income distribution among citizens

C. The supply of money and credit in the economy

D. Production levels in agriculture

2 / 40

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

A. Technological advancements

B. Diversification into agriculture

C. Oil boom

D. Industrial revolution

3 / 40

3. Equitable distribution of income implies:

A. Increasing inequality for higher economic growth

B. Identical income levels for all citizens

C. Ensuring fairness and equal opportunities in income distribution

D. Distributing income only among rural areas

4 / 40

4. Economic growth under monetary policy focuses on:

A. Increasing per capita income over time

B. Accumulating gold reserves exclusively

C. Reducing trade competition through taxes

D. Constantly increasing employment at all costs

5 / 40

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

A. Lack of foreign investments

B. Excessive agricultural exports

C. Absence of natural resources

D. Over-reliance on oil

6 / 40

6. Merchant banks are also referred to as:

A. Mortgage centers

B. Acceptance houses

C. Cooperative institutions

D. Insurance houses

7 / 40

7. 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

8 / 40

8. 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

9 / 40

9. A balanced balance of payments means that:

A. Imports and exports are equal

B. Trade restrictions reduce economic inequality

C. Excessive imports dominate foreign trade

D. Exports exceed imports significantly

10 / 40

10. Open market operations in monetary policy involve:

A. Controlling government expenditure

B. Buying or selling government securities

C. Adjusting consumer price indices

D. Monitoring inflation exclusively

11 / 40

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

A. Limited natural resources

B. Lack of arable land

C. Over-dependence on manual farming methods

D. High export tariffs

12 / 40

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

A. Petroleum sector

B. Service sector

C. Agricultural sector

D. Industrial sector

13 / 40

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

A. Creation of widespread employment opportunities

B. Decrease in urbanization

C. Reduced government revenue

D. Neglect of other sectors like agriculture

14 / 40

14. Economic structures are fundamental because they:

A. Determine productive capabilities and performance

B. Always increase GDP growth rates

C. Replace institutions in growth-focused economies

D. Guarantee technological development

15 / 40

15. Bidirectional causality in institutions and economic structures means:

A. Institutions cannot adapt to productive structures

B. Economic growth solely determines institutions

C. Structural change ignores institutional contexts

D. Growth and institutions influence each other

16 / 40

16. Institutions of production include

A. Extractive political systems

B. Rule of law and property rights

C. Tariffs, subsidies, and industrial policies

D. Regulation of educational systems

17 / 40

17. 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

18 / 40

18. 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

19 / 40

19. The main function of the Central Bank is:

A. Providing short-term loans

B. Regulation and supervision of the banking system

C. Encouraging international trade exclusively

D. Issuing mortgages

20 / 40

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

A. Reduced reliance on international trade

B. Increased domestic demand for foreign goods

C. Growth in international reserves

D. Strengthened local currency value

21 / 40

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

A. Northern Nigeria

B. Niger Delta

C. South-East Nigeria

D. South-West Nigeria

22 / 40

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

A. Global dependence on extractive economies

B. Technological dominance of wealthier states

C. Selective or weak enforcement of regulations

D. Complete absence of production structures

23 / 40

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

A. Productivity and inflation do not balance

B. Liquidity automatically reduces unemployment

C. Fiscal policies are robust in non-oil revenues

D. It creates instability in long-term trade

24 / 40

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

A. 1980

B. 1973

C. 1960

D. 1959

25 / 40

25. 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

26 / 40

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

A. Crude oil

B. Palm oil

C. Timber

D. Cocoa

27 / 40

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

A. Agricultural projects and allied industries

B. Infrastructure development in urban centers

C. Manufacturing and heavy industries

D. Residential real estate financing

28 / 40

28. 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

29 / 40

29. Higher aggregate demand due to wage increments would:

A. Stabilize industrial output levels immediately

B. Cancel fiscal deficits in oil-importing regions

C. Eliminate liquidity risks in poorly structured sectors

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

30 / 40

30. Monetary policy is primarily implemented by:

A. International organizations

B. Commercial banks

C. Government ministries

D. The central bank

31 / 40

31. A progressive tax system aims to

A. Reduce inequality by taxing higher-income groups more

B. Eliminate unemployment directly

C. Tax all income levels equally

D. Limit economic development in urban regions

32 / 40

32. Development banks differ from commercial banks by:

A. Avoiding risky agricultural investments

B. Offering loans for long-term economic growth

C. Focusing solely on profit-making services

D. Operating without government oversight

33 / 40

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

A. Allocating jobs only in urban areas

B. Achieving a state with no involuntary unemployment

C. Ensuring no unemployment at all

D. Subsidizing all underemployed workers

34 / 40

34. The Urban Development Bank of Nigeria focuses on:

A. Supporting small-scale agricultural investments

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

C. Offering fiscal advice to rural banks

D. Providing export credit insurance

35 / 40

35. A robust production structure can drive growth by:

A. Reducing innovation cycles across industries

B. Avoiding structural transformation

C. Suppressing changes in occupational markets

D. Creating economic activities with increasing returns

36 / 40

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

A. Handle foreign investments exclusively

B. Manage agricultural loans

C. Act as an intermediary for government funds

D. Facilitate housing finance and home ownership

37 / 40

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

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

B. Promote only domestic economic growth

C. Focus solely on crude oil exports

D. Provide short-term cash credit facilities for traders

38 / 40

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

A. National Economic Empowerment Development Strategy (NEEDS)

B. Vision 2020

C. Structural Adjustment Program (SAP)

D. Green Revolution

39 / 40

39. A progressive tax system aims to:

A. Eliminate unemployment directly

B. Limit economic development in urban regions

C. Reduce inequality by taxing higher-income groups more

D. Tax all income levels equally

40 / 40

40. Commercial banks in Nigeria primarily distinguish themselves by

A. Accepting deposits withdrawable by cheque

B. Managing only large-scale industrial accounts

C. Solely creating employment opportunities

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

Your score is

The average score is 48%

ECN 207 CBT PRACTICE

Recent Posts

EBSU CHM 101 CBT Practice

EKSU MTH 103 CBT Practice

JAMB Use of English CBT Practice

JAMB Government CBT Practice

The Lekki Headmaster CBT Practice

Follow us on Instagram @undergragra_official

EVEN MORE NEWS