bfn203

Category: BFN203

ATTENTION:

Kindly note that you will be presented with 50 questions randomized from the NOUN question bank. Make sure to take the quiz multiple times so you can get familiar with the questions and answers, as new questions are randomized in each attempt.

Good luck!

BFN203

1 / 50

A. Motor vehicle insurance protects the policyholder against financial loss in the event of an-------------------------------

1. Accident

2. Loss

3. Flood

4. Lock down

2 / 50

B. The different methods of saving money is classified into ------------------------

1. Four

2. Two

3. Three

4. Five

3 / 50

Which of the following is not a step in personal financial planning process?

1. Portability

2. Examination

3. Quick sort

4. Assessment

4 / 50

D. Personalize contract between two parties in which payment takes place at specific date in the future at today’s pre-determined price is known as …………..

5 / 50

E. Investment is very important because it could be used to -------------------------

1. Generate unemployment

2. Generate employment

3. Frustrate employment

4. Stops employment

6 / 50

F. Diversification is a technique that reduces ………….. by allocating investments among various financial instruments.

7 / 50

G. A derivatives refers to a financial product which has its value dependent on the outcome of the original _________

8 / 50

H. According to economists, Investment is regarded as savings embarked upon as a result of __________

9 / 50

I. The rise in the prevailing price (market value) of a property over a period of time, being realized as a cash inflow whenever the property is sold is called ……………..

10 / 50

J. Futures are derivatives in which the contracts to buy or sell a specific asset on a future date at a price …………….

11 / 50

K. ………… derivatives are contracts that are transacted and privately sold directly between two parties, without going through any stock exchange.

12 / 50

L. The practice where depreciation, tax liability and carryover losses are charged against income from other sources for a period of about three decades is called _________

13 / 50

M. Savings accounts holders are restricted in withdrawing their money by leaving ________

1. Maximum balance

2. Account Balance

3. Limited Balance

4. Minimum balance

14 / 50

N. Usually, higher level-of-return investments are associated with higher ___________

15 / 50

O. How much allowance is provided per child in the Personal Income Tax Act (PITA)?

1. N 1,500.00

2. N 1,650.00

3. N 1,050.00

4. N 1,600.00

16 / 50

P. …………. Is the practice of taking advantage of a price difference between two or more financial markets

17 / 50

Q. Personal Financial planning process involves -------------------------------steps

1. Two steps

2. One step

3. Four steps

4. Three steps

18 / 50

R. According to Bhave (1994), one of the following is not a stage in the process of venture creation.

1. Opportunity Demand stage

2. Opportunity Recognition technique

3. Opportunity Recognition strategy

4. Opportunity Recognition stage

19 / 50

S. The market for long term credit is-------------------------

1. Debentures

2. Money market

3. Shares

4. Labour market

20 / 50

T. Capital gains are generated from an appreciation on the value of-------------------

1. Purchased Assets

2. Financial Installment

3. Required Asset

4. Purpose statement

21 / 50

U. Diversification means that an investor should invest in ------------------------------

1. Double asset

2. Single asset

3. Multiple asset

4. Derived asset

22 / 50

V. ……………… property is regarded as the creations of the intellect for which a monopoly is granted to the designated owners by law.

23 / 50

W. The maturity period for Treasury bills is--------------------

1. 60 days

2. 30 days

3. 40 days

4. 50 days

24 / 50

X. Financial products of high net worth companies are regarded as --------------------

1. Red chip securities

2. Green chip securities

3. Blue chip securities

4. Yellow chip securities

25 / 50

Y. The main advantage of the hedge is that it lowers the risk of an ………….

26 / 50

Z. In property investment, a large portion of purchase price is through debt instrument such as: __________

1. Unlimited Credit

2. Limited Capital

3. Micro Credit

4. Macro Credit

27 / 50

AA. …………….. stages are involved in venture round financing being provided by venture capitalists.

28 / 50

AB. A value investor buys undervalued securities while he sells …………… out of his investment portfolio in the capital market.

29 / 50

AC. Which of the following accounts attracts interest payment to the account holder?

1. Static account

2. Savings account

3. Sales account

4. Current account

30 / 50

AD. The two sections that make up the Financial market are ____________

1. Capital market and Stock budget

2. Money market and Stock market

3. Capital market and Stock market

4. Capital market and Commodity market

31 / 50

AE. A property in the possession of a buyer can become a foreclosure if he or she fails to make a mortgage payment for at least ………………..

32 / 50

AF. The fundamental purpose of investment is to generate ___________

33 / 50

AG. …………… refers to the owners’ contribution to the capital funding of the business

34 / 50

AH. Disability insurance police provide financial support in the event of the policyholder becoming unable to work because of--------------------------------

1. Industrial weariness

2. Industrial setback or backwardness

3. Industrial accident or sickness

4. Industrial hit or run

35 / 50

AI. The ------------------account attracts commission on turnover (COT).

1. Savings

2. Sales

3. Current

4. Budget

36 / 50

AJ. Which of the followings is a money market instrument?

1. Shares

2. Interest

3. Capital Allowance

4. Debentures

37 / 50

AK. Another name for Contingency fund is ----------------------------

1. Consolidated capital

2. Consolidated interest

3. Consolidated loan

4. Consolidated fund

38 / 50

AL. Contingency fund could be classified into ------------------------------

1. Long-term and Short-term

2. Short-term and Medium-term

3. Long-term and Limited-term

4. Long-term and Medium-term

39 / 50

AM. ………………… in finance refer to the practice of engaging in risky financial transactions in an attempt to earn profit from short term fluctuations in the market value of a tradable financial instrument.

40 / 50

AN. The strategic role of the Entrepreneur in creating a new venture revolves around ---------------------------------------

1. Re-strategizing market plan

2. Developing an old business site

3. Developing a budget strategy

4. Developing a new business site

41 / 50

AO. Preference shares attract fixed rate of ………………..

42 / 50

AP. Which of the following instrument is not traded in the Capital market?

1. Jointed Shares

2. Ordinary Shares

3. Common Shares

4. Capital Shares

43 / 50

AQ. Risk which is insurable has how many characteristics?

1. Five

2. Two

3. Three

4. Four

44 / 50

AR. Financial products, like Stock, Bonds, Treasury bills, and Treasuring certificate floated by Government is known as --------------------------

1. Founders’ insecurities

2. Founders’ strategy

3. Negotiation

4. Founders’ securities

45 / 50

AS. ……………… involves contracts that subsist between two parties, which incorporate specific terms like Dates and Maturing values.

46 / 50

AT. One of the ways to reduce the risk of investment is by ----------------------------------

1. Marketing planning

2. Shareholders

3. Buying on credit

4. Selling on credit

47 / 50

AU. Marketable securities refer to money market financial instruments that are easily convertible to ----------------------

1. Debt instrument

2. Gain instrument

3. Sales promotion

4. Object Code

48 / 50

AV. ________ refers to a form of investment that has some relative limited liquidity when compared to other forms of investment

49 / 50

AW. One factor that can make real estate investment to result in failure is the absence of ……………..

50 / 50

AX. …………….. refers to the amount of funds in the structure of the capital that is borrowed from outside sources of financing.

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