Examination on Finance

Mr Smith a renowned Finance Professor stated that the subject matter of finance is very narrow and only limited to business organization?

a. Yes, finance is limited to only money.

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b. No, finance is broad and encompasses the use of financial resources.

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c. Finance as a subject is just a branch of economics

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d. Cannot take a stand in the argument.

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Personal finance is the study of ?

a. The study of a person and money.

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b. The study of the source, planning and management of personal income.

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c. The principles of acquiring money.

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d. The risk associated with personal money.

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In the study of personal finance, the followings except one is considered?

Spending

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Capital budget

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Savings

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Investment.

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What relationship is there between personal finance and personal income?

a. There is no relationship

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b. Personal finance studies how personal income is generated and use at home.

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c. Personal finance is same as personal income.

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d. Personal finance is the use of cash at hand

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Of what use is personal finance to an housewife?

It helps in the allocation of disposable income.

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It assist the housewife to spend money quickly.

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It shows how to record Financial spending at home.

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It indicate when exactly the family can borrow more money.

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One of the following is a recommended way to managing personal finance?

Keeping cash available at home

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Shared risk with your wife by financial transparency.

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Always count what you buy.

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Be strict and avoid spending.

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Improving personal savings includes all of the following except?

bank deposit

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Savings with cooperatives

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Health insurance premium

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Staff mutual contributions

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In what ways can personal investments be done?

a. Bank savings

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b. Starting a business

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c. Form partnership with others

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d. Increase home consumables.

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Personal finance is related to personal self-development?

a. Not at all

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b. Never

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c. True

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d. Cannot say.

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What is the meaning of control expenses?

a. Expenses made by a disciplinarian

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b. Making trouble before spending any money

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c. Exercising diligence in making expenses

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d. Avoiding many expenses.

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Why is barter system seen as limitations to purchase of services?

a. Absence of equitable measurement of value.

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b. Lack of physical goods for service

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c. Absence of the cost for service

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d. Absence of service providers.

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How best can you define money as a store of value?

a. Money last longer without perishing.

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b. Money keeps value over time for equitable payment.

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c. Money can move from one hand to another

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d. Money is acceptable anytime.

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The earliest types of money is one of the following except.

a. Cowrie

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b. Squirrel

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c. Animal skin

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d. Paper money.

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What differentiates metallic money from paper money?

a. Texture.

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b. Weight

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c. Divisibility

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d. Storage.

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The following are all types of money except?

a. Coupon.

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b. Coins

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c. Receipt.

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d. Blue chip Vouchers.

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What significant role does money issued by CBN different from money issued by Lagos state Government?

a. CBN money is a legal tender while Lagos state money is by custom.

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b. CBN money is generally accepted while Lagos state money is only acceptable within Lagos state.

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c. CBN money has more value than Lagos state money.

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d. Both are money and can be traded anywhere.

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Mr Awaji Benson during his mother’s birthday celebration, was found spraying cash in Naira and Dolar amounting to several millions. Which of the following can describe the need for money in this incidence?

a. Speculative

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b. Precautionary

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c. Transactionary

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d. Donations.

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The money supply equation is indicated by ?

a. L=M1=M3+ SB+TS+ CP+BA+M3H

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b. MS = M1+D+S

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c. M1= cash + deposits- expenses

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d. M2= TB + BS + BA (CP).

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What is the full meaning of BA in the money supply .

a. Bank Advances

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b. Basic treasury Assets

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c. Bankers Agreement

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d. Bankers’ acceptance M3H = Net of money market mutual holdings

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Assume that funds are going to be invested for one-year period only. Would an economic unit prefer to hold money on long term bonds if he had the following expectations? i. an interest returns of ₦120, a capital gain of ₦60 ii. an interest returns of ₦120, a capital loss of ₦140?

a. i only in the short run.

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b. ii only to be applied in portfolio.

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c. i and ii are both profitable

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d. I indicated low risk and high profit

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A financial asset is the same as economic assets because?

a. They are all assets.

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b. Economic assets is used in production of financial asset.

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c. Financial asset is based on the economic trend of the economy.

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d. None of the above.

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A financial asset accounting to IFRS ,includes all of the following except?

a. Cash or cash equivalent,

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b. Equity instruments of another entity.

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c. Proforma invoice.

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d. Contractual rights of another entity.

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Copywrite and patents could be considered as financial asset?

a. Yes.

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b. For the sake of transaction

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c. No

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d. Sure.

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The project evaluation criteria may not include one of the followings?

a. Should consider all cash flow to determine the true profitability of the project.

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b. It should provide for an objective and unambiguous way of separating good project from bad projects.

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c. It should discourage ranking of projects according to their true profitability

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d. It should recognize the fact that bigger cash flow are preferable to smaller ones and early cash flow are preferable to later ones.

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Profitability index is typical of ……?

a. Non – discounted cas flow criteria.

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b. Discounted payback period

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c. Discounted cash flow criteria

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d. Project implementations criteria.

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The IRR method is to calculate the exact DCF rate of return which the project is expected to achieve that is, the rate at which the ?

a. NPV is 1

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b. NPV is 0.

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c. NPV is -1

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d. NPV is equal.

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Bankers acceptance is …….?

a. A time draft drawn on any bank ordering the bank to pay a stated amount to the holder of the draft upon maturity.

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b. A time draft drawn on a commercial bank ordering the bank to pay a stated amount to the holder of the draft upon maturity.

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c. A time draft drawn on a commercial bank advising the bank to pay a stated amount to the holder of the draft anytime.

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d. A time draft drawn on a commercial bank ordering the payment of a stated amount to the holder of the draft at demand.

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Commercial paper is a kind of promissory note, issued by

a. large, financially sound corporate bodies.

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b. Government

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c. State Government

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d. CBN.

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What is the full meaning of MMMF.

a. Merchant member money market Fund.

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b. Money Market management Family .

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c. Modern market mutual funds

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d. Money Market Mutual Funds.

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Derivatives instruments are financial instrument in the…..

a. Capital market

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b. Money market

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c. Spot market

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d. Future market .

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What is the main content of a financial statement?

a. The measurement of profit of an entity.

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b. The statement of affairs of the receipt and uses of Resources.

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c. The statement of company's financial liabilities.

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d. A statement of records of an entity.

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Financial statement gives us clear idea about the financial position of the company. The why financial ratio?

a. It's same as financial statements.

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b. It simplify financial statements.

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c. It duplicates Financial statement

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d. It indicates errors in financial reporting.

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The Government used financial ratio analysis in one of the following ways.

a. Determining taxation for business owners.

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b. To locate projects in the country.

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c. To know where EFCC should investigate.

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d. To determine electoral population.

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Why is it challenging to use ratio analysis in the third world countries?

a. Lack of political wills

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b. Lack of data and information.

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c. Lack of research institutions

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d. Lack of funds.

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What difference is there between current ratio and acid test ratio analysis?

a. Current ratio consider current items while acid test consider inventory assets.

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b. Current ratio takes account of inventory while acid test excludes inventories.

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b. Current ratio takes account of inventory while acid test excludes inventories.

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c. Current ratio is complex while acid test is simple

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Mr Smith is a new investor in AI industry. He is financially capable but decided to go into a merger plan with an existing business. What could be the sole reason.

a. Earn more populaity.

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b. Expand market share.

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c. Modernize the company

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d. Discourage others.

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Hostile acquisition is sometimes referred to…?

a. Witch hunt acquisition

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b. Hostile takeover

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c. Hostile acquisition

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d. Ambush takeover.

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The following is not a type of merger?

a. Conglomerate

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b. Vertical integration

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c. Mutual Integration

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d. Horizontal integration

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Economic units in one country do interact with those in other countries for ..?

a. Economic war.

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b. Mutual benefit.

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c. Competition

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d. Spy.

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International finance is not meant for?

a. Exchange of goods and services

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b. Transactions

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c. Exchange of forms of government

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d. Exchange of technology.

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Autonomous transactions made in their own right and undertaken are?

a. Secondary transactions

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b. Original transactions

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c. Primary transactions

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d. Autonomous transactions.

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The making of foreign exchange remittance ever before the subject of the transactions reaches the hands of the importer is known as..

a. Cash advance

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b. Open account

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c. Trust deals

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d. Guarantee

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A bill of exchange is…?

a. A documentary evidencing a written statement by the exporter ordering the importer to pay a specific sum of money at a specific time.

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b. A documentary evidencing a written statement by the importer ordering the exporter to pay a specific sum of money at a specific time.

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c. A documentary evidencing a written statement by the correspondent bank ordering the importer to pay a specific sum of money at a specific time.

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d. A documentary evidencing a written statement by the importer ordering his bank to pay a specific sum of money at a specific time.

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Methods of measuring inflation excludes…?

a. Producers price index

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b. Price trend index

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c. Commodity price index

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d. Regional inflation

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Among the causes of inflation, one of the following is induced?

a. War

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b. Unemployment

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c. Demand push inflation

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d. Instability in government.

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The Monetarist economists are of the opinion that ……..IA a major caused of inflation.

a. Cost push inflation

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b. Demand pull inflation

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c. Unemployment

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d. Monetary policy.

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According to the Monetarist economists, the following are ineffective way of controlling inflation by Government except?

a. Taxes

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b. Price controls

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c. CBN monetary policies

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d. Fiscal policy.

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One of the following is not a negative effect of inflation?

a. Hoarding

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b. Labour strike

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c. Labour market negotiations

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d. Unrest.

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……..is the major purpose of cash management?

a. To measure cash policy and cash management.

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b. To balance the cost associated with holding cash and benefits derived out of holding the cash.

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c. The objective of cash management is to balance the returns associated with holding cash and benefits derived out of holding the cash.

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d. To avoid over spending the budget.

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Structuring cash management policy, the firm has to consider?

a. Legal policies and compliance.

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b. Internal business process and external environment.

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c. Internal Control and industry competition.

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d. Internal management and external pressures.

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Examination on Finance

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