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 201 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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FIN 201

1 / 40

1. Emphasize the undesirable output in banking operations.

A. Earnings

B. Advances

C. Loan-loss provisions

D. Deposits

2 / 40

2. Mention the key advantage of mergers for smaller banks.

A. Immediate scaling up

B. Declined efficiency

C. Reduced profitability

D. Higher operational costs

3 / 40

3. Highlight the component that evaluates the efficiency of resource utilization in banking.

A. Turnaround time

B. Loan approval time

C. Return on equity

D. Deposit ratio

4 / 40

4. Highlight the advantage of online banking for customers.

A. Limited product offerings

B. Restricted service hours

C. Increased transaction fees

D. Continuous access to services

5 / 40

5. Identify the component critical to financial intermediation success.

A. Employee redundancy

B. Customer complaints

C. Credit assessment

D. Physical infrastructure

6 / 40

6. Describe the element ensuring banks meet operational challenges

A. Limited credit facilities

B. Manual processing

C. Advanced technology

D. High reserve funds

7 / 40

7. Indicate the tool used by banks to manage financial risks effectively.

A. Automation

B. Reserve fund allocation

C. Credit policies

D. Employee training

8 / 40

8. Point out the reason banks impose transaction costs on accounts.

A. Cover operational expenses

B. Improve savings habits

C. Reduce service quality

D. Encourage deposits

9 / 40

9. Point out the type of reserve maintained by commercial banks due to regulatory requirements.

A. Voluntary reserve

B. Statutory reserve

C. General reserve

D. Depreciation reserve

10 / 40

10. Identify the primary role banks play in a market-based economy.

A. Financial intermediation

B. Trade facilitation

C. Wealth creation

D. Tax collection

11 / 40

11. Emphasize the service banks provide for transferring funds between locations.

A. Payment guarantees

B. Loan advances

C. Fund remittance

D. Overdrafts

12 / 40

12. State the primary factor contributing to economies of scale in banking.

A. Technology adoption

B. Cost reduction

C. Increased production

D. Customer loyalty

13 / 40

13. Identify the primary reason banks collect reserve funds.

A. Enable fund distribution

B. Safeguard customer deposits

C. Increase profitability

D. Comply with regulations

14 / 40

14. Define the key benefit of capital adequacy in banking operations.

A. Declined operational capacity

B. Limited market reach

C. Enhanced stability

D. Reduced competition

15 / 40

15. Specify a disadvantage of banking automation.

A. High acquisition costs

B. Reduced error rates

C. Increased efficiency

D. Greater customer satisfaction

16 / 40

16. Indicate the critical output resulting from customer deposits and bank lending.

A. Statutory reserves

B. Profit generation

C. Fund storage

D. Credit facilities

17 / 40

17. Mention the factor affecting demand for banking services due to poor accessibility of branches.

A. Transaction costs

B. Availability of bank branches

C. Income levels

D. Service charges

18 / 40

18. Mention the process banks use to mobilize funds from surplus units to deficit units.

A. Financial intermediation

B. Liquidity creation

C. Risk diversification

D. Asset management

19 / 40

19. Indicate the method banks use to reduce errors in service delivery.

A. Customer feedback

B. Employee training

C. Automation

D. Outsourcing

20 / 40

20. State the primary goal of operating costs in banking.

A. Maintaining liquidity

B. Maximizing profit

C. Reducing losses

D. Ensuring day-to-day maintenance

21 / 40

21. Identify the component critical to financial intermediation success

A. Physical infrastructure

B. Customer complaints

C. Employee redundancy

D. Credit assessment

22 / 40

22. Highlight the service enabling banks to attract more customers by offering consultancy.

A. Investment portfolio management

B. All the options

C. Legal advisory

D. Wealth management

23 / 40

23. State the major challenge associated with mergers and acquisitions in banking.

A. Cultural misfit

B. Increased customer base

C. Improved efficiency

D. Better resource utilization

24 / 40

24. Indicate the advantage customers gain from economies of scale in banking.

A. Higher interest rates

B. Reduced costs of services

C. Enhanced marketing strategies

D. Limited product variety

25 / 40

25. Mention the key advantage of mergers for smaller banks.

A. Declined efficiency

B. Higher operational costs

C. Reduced profitability

D. Immediate scaling up

26 / 40

26. Highlight the term describing the process through which banks create new credits when loans are issued.

A. Fractional reserve

B. Asset securitization

C. Financial intermediation

D. Credit creation

27 / 40

27. Identify the output commonly associated with banking operations.

A. Fixed assets

B. Loan and advances

C. Human resources

D. Reserve funds

28 / 40

28. Indicate the tool used by banks to manage financial risks effectively

A. Credit policies

B. Reserve fund allocation

C. Employee training

D. Automation

29 / 40

29. Recognize the theory explaining money creation by the banking system as a whole, not individual banks.

A. Intermediation theory

B. Money multiplier theory

C. Credit creation theory

D. Fractional reserve theory

30 / 40

30. Highlight the process enabling banks to perform transactions with reduced human intervention.

A. Manual processing

B. Branch banking

C. Risk assessment

D. Digital automation

31 / 40

31. Define the system ensuring real-time financial transactions without physical bank visits.

A. Centralized banking

B. Traditional banking

C. E-banking

D. Manual processing

32 / 40

32. Highlight a critical metric for measuring bank performance.

A. Return on assets

B. Product variety

C. Turnaround time

D. Market share

33 / 40

33. Emphasize the feature of banking automation reducing redundancy in human labor.

A. Cost reduction

B. Error detection

C. Process optimization

D. Staff deployment

34 / 40

34. Indicate the purpose of statutory reserves for banks.

A. Comply with legal requirements

B. Maximize profits

C. Increase loan issuance

D. Reduce branch operations

35 / 40

35. Recognize the benefit derived by banks from mergers and acquisitions.

A. Reduced market presence

B. Declined financial gains

C. Decreased operational capacity

D. Enhanced competitive strength

36 / 40

36. Emphasize the cost banks incur due to automation maintenance.

A. Increased customer satisfaction

B. Reduced operational challenges

C. High infrastructure expenses

D. Reduced employee training costs

37 / 40

37. State the challenge faced by customers due to insufficient bank staff.

A. Limited product variety

B. High-interest rates

C. Lack of branch access

D. Poor service quality

38 / 40

38. Highlight the primary cause of credit rationing in banking.

A. Excess funds availability

B. Low customer demand

C. Limited supply of loanable funds

D. Surplus credit availability

39 / 40

39. Describe the service enabling customers to access funds exceeding their deposits.

A. Loan advances

B. Credit extension

C. Fixed deposit

D. Overdraft

40 / 40

40. Define the key factor influencing customer demand for banking services.

A. Marketing strategies

B. Income level

C. Government policy

D. Technology

Your score is

The average score is 53%

FIN 201 CBT PRACTICE

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