1. _____ involves spending of money with the hope of reaping some financial benefits.

a) Investment

b) Savings

c) Trading

d) Economics

2. According to ______, investment is regarded as savings embarked upon as a result of “delayed consumption.”

a) Sociologist

b) Psychologist

c) Economists

d) Civil Servants

3. In ______, an investment involves utilization of funds in acquisition of financial assets such as stocks, bonds, bullion, real properties, and precious items.

a) Finance

b) Trade

c) Insurance

d) Economics

4. ______ (2017) posits that the term investment refers to something that is acquired with money with the expectation to generate income or profit from it.

a) Mattie

b) Beatrice

c) Beattie

d) Ayo

5. The author identifies three basic groups of investments such as ownership investment, lending investment, and _____ investment.

a) Data

b) Capital

c) Funds

d) Cash

Click here to find all past revision classes

6. A _____ refers to a financial product which has its value dependent on the outcome of the original financial product as investment by the managers of the funds.

a) Derivative

b) Compensation

c) Bonds

d) Dividend

7. The money that is used in starting and running a business is an ______ .

a) Support

b) Profit

c) Investment

d) Over head capital

8. Entrepreneurship is one of the hardest investments to make because it requires more than just _____.

a) Finance

b) Money

c) Support

d) Loan  

9. Marketable securities refer to money market financial instruments that are easily convertible to physical _____.

a) Data

b) Capital

c) Funds

d) Cash

10. According to ______ (2012), a Treasury bill (T-bill) refers to short term debt obligation that is taken by the government through the apex bank.

a) Infotopia

b) Wikitopia

c) Wikipedia

d) Investopedia

Click here to find out your next semester fee

11. T-bill normally has a maturity date of some months but less than ______ year.

a) Two

b) One

c) Three

d) Five

12. ______ securities are obligations of the government.

a) Treasury

b) Gold

c) Convertible

d) In-convertible

13. ______ (2007) posits that venture creation refers to an action initiated for starting business venture with the intent of filling the gap between an initiative and a “capitalized business.

a) Swinger

b) Saddler

c) Samuel

d) Swier

14. The entrepreneur constitutes the driving _____ for the recognition of a venture idea.

a) Force

b) Energy

c) Charisma

d) Strategy

15. An entrepreneur, as an ______ , is regarded as a change agent in terms

of acting to assume the risk inherent in the formation of a business venture.

a) Monopolist

b) Socialist

c) Industrialist

d) Capitalist

16. Investment ______ is regarded as one of the basic building blocks of a solid portfolio.

a) Diversification

b) Clogging

c) Segmentation

d) strategies

17. Diversification is the sort of thing that suffers from what is called “double _____”

a) Dip

b) Clone

c) Deep

d) Float

18. A_____ is an investment which is undertaking in order to reduce the risk of adverse price movements in a financial asset.

a) Cliff

b) Hedge

c) Slide

d) Shift  

19. In simple terms, a hedge is used to ______ any substantial losses that may

occur in investment which has to do with financial assets in the capital market.

a) Increase

b) Subdue

c) Reduce

d) Inflate

20. ______ is not simply the act of buying a product in one market and selling it in another for a higher price at some later time.

a) Arbitrage

b) Trade

c) Commerce

d) Marketing

Click here to find out more about your CGPA/GPA

21. _____ can be useful toward making returns on your fund.

a) Affiliation

b) Inflation

c) Speculations

d) Distribution

22. Two broad types of derivative can be identified as OTC and _____

a) DET

b) TED

c) ETT

d) ETD

23. ______ involves Listing Service, Commercial Information Exchange or publications in the media.

a) Market listings

b) Market survey

c) Market analysis

d) Market Scanning

24. Equity build-up counts as a positive cash flow from the _____.

a) Liabilities

b) Fixations

c) Stocks

d) Asset  

25. ______ refers to the rise in the prevailing price (market value) of the property over a period of time.

a) Capital appreciation

b) Capital depreciation

c) Capital actualization

d) Capital investment  

26. Organization of Petroleum Exporting______ (OPEC)

a) Communities

b) Countries

c) Compatriot

d) Commands

27. According to Investopedia (2017), types of commodities that are for dealing in commodities markets includes all but ______

a) Metals

b) Energy

c) Agricultural products

d) Scrubs

28. ______ is a share in the ownership of a company.

a) Debentures

b) Capital

c) Stock 

d) Investment

29. ______stocks are regarded as being less prone to volatile price swings when compared with futures.

a) Quantity

b) Equity  

c) Proportional

d) Fractional

30. Acquisition of stocks can be easy, which can be held, traded and tracked, while it is possible to stake in a particular ______.

a) Industry

b) Enterprise

c) Organization

d) Sector  

Click here to download BFN203 TMA solution for exam preparation

31. _______ funds let you pool your money with other investors to “mutually” buy stocks, bonds, and other investments.

a) Mutual

b) Capable

c) Joint

d) Derivative

e) Compensation

32. Exchange traded funds (ETFs) and exchange -_____ notes (ETNs) trade like stocks, and they afford investors to participate in commodity price fluctuations without investing directly in futures contracts.

a) Traded

b) Trading

c) Tradic

d) Trade

33. The holders of ______ share are not owners of the firm since they cannot vote in the AGM of their firm.

a) Intended

b) Predetermined

c) Preference

d) Predicated

34. _______ are long term debt securities normally offered for public subscription.

a) Debentures

b) Capital

c) Share

d) Equity

35. ______ are sometimes issued with stock warrants attached.

a) Debentures

b) Stocks

c) Investments

d) Bonds

36. _______ are options to purchase common stock at a specified price up to a specified date.

a) Guarantee

b) Insurance

c) Warrants

d) Assurance

37. _______ are long-term loans that are secured by real property.

a) Loan

b) Overdraft

c) Mortgages

d) Investments

38. Mortgages are issued to purchase ______.

a) Real-estate  

b) Vehicles

c) Trucks

d) Vacation tickets

39. ______ property, according to World Intellectual Property Organization (2017), refers to creations of the mind like inventions, literary and artistic works, designs, symbols, names and images that are used in the world of commerce.

a) Prescribed

b) Intellectual

c) Factored

d) Residual

40. In respect of ______ material, the exclusive right lasts for 70 years beyond the death of the author.

a) Infringed

b) Duplicated

c) Copyrighted

d) Faked  

Click here to find out  next the revision class

41. According to_____(2017), copyright involves a legal term that is used to describe the rights that creators have over their literary and artistic works.

a) WIZO

b) FIFO

c) LIFO

d) WIPO

42. A ______ , according to WIPO (2017) refers to an exclusive right conferred on an inventor for his invention.

a) Copyright

b) Trademark

c) Patent

d) Product right

43. The term _____, according to WIPO (2017), refers to a sign capable of distinguishing the goods or services of one enterprise from those of other enterprises.

a) Copyright

b) Trademark

c) Patent

d) Product right

44. Trade _____ refers to any formula, pattern, device, or compilation of information that provides a business advantage over competitors who do not use or know of it.

a) Plan

b) Strategy

c) Skill

d) Secret  

45. A _____ (Investopedia, 2017) refers to the payment to the holder of a right or owner of an asset for the using the property.

a) Tax

b) Royalty

c) Duty

d) Fine

46. The ______ of financial instruments that are traded differentiates markets determines the nature of the market segments.

a) Maturity

b) Growth

c) Development

d) Increment

47. The _____ market is the financial market in which financial instruments are traded with maturity of up to one (1) year.

a) Stock

b) Trader

c) Money

d) Capital

48. The federal government uses the money market to implement certain phases of monetary policy such as adjustments to the money _____.

a) Demand

b) Supply

c) Inflation

d) Deflation

49. ______ describes the ability to convert an asset into cash with relative ease while not significantly depressing its price in the process.

a) Liquidity

b) Equality

c) Demand

d) Supply  

50. The ______ share is a unit of capital ownership in a firm in terms of equity investment by the shareholders.

a) Ordinary

b) Common

c) Capital

d) Investment

Click here to find out how to login to your TMA portal 

In conclusion

The Basic Financial Literacy BFN203 CBT/E-EXAM practice questions and answers are exam concentrated questions carefully selected structure and arranged.

To enhance ease in the process of preparing student for the examination of the course.

Students are advised to get all materials necessary as to enhance studying and exam preparation.

For further questioning or assistance, reach out to Tutor Ayo using the whatsapp button on the top right hand corner of this page or click here.