FBQ1: Elements of Banking provides student with a ------------ understanding of the subject matter. Answer: conceptual FBQ2: “This is the process of legally organizing an outfit to create, safe-keep, manage and transfer money from one person to another, from business to business or in a nut shell between surplus and deficit spending economic agents/ units”. What type of business does this statement refer? Answer: Banking FBQ3: Why did majority of the banks fail in the 1950s ________ Answer: lack of regulation FBQ4: At the epicentre of a nation’s financial system is its ___________ Answer: Central Bank FBQ5: _________ is the difference between loans and advances Answer: Tenor FBQ6: What is the full meaning of BOFIA? Answer: Banks and Other Financial Institutions Act FBQ7: When was the Central Bank of Nigeria established? Answer: 1959 FBQ8: Who is the current Governor of the Central Bank of Nigeria?  Answer: Godwin Emefiele FBQ9: Which organisation has acceptance of deposits as its primary function? Answer: Commercial banks FBQ10: What common name would you call Mortgage bank, Micro finance bank, Development bank and Community bank?  Answer: Specialized banks FBQ11: From the economic stand point defined money in terms of -------------- Answer: function FBQ12: Fixed, Inventory and _______ are types of Investment Answer: Replacement FBQ13: A bill is discharged when all the orders it contains have been _______ Answer: carried out FBQ14: Money can be demanded for the following motives: Transaction, Precaution and ---- Answer: Speculative FBQ15: Legal Department is a ________ form of Departmentalization?  Answer: Functional FBQ16: Commercial paper is one of the ___________ of the money market Answer: instruments FBQ17: What do you call the system that involves exchanging merchandise for merchandise? Answer: Barter FBQ18: Y = C + S + I + G + (x-m). Y represents ___________ in the equation Answer: National income FBQ19: -------------refers to the several of a country’s money supply in order to measure the money supply in an economy. Answer: Money aggregates FBQ20: The money market is a market where ---------- funds are bought and sold. Answer: short term FBQ21: Treasury bills, Treasury certificates, Commercial paper, Call money, Certificates of deposit, Bankers Unit Fund and Eligible Development Stock. What are these collectively called? Answer: Money market instruments FBQ22: ---------------is a financial intermediaries licensed by the government to buy and sell foreign currencies on a small scale. Answer: Bureau de change FBQ23: The monetary sector of the economy is anchored by the ----------sector Answer: banking FBQ24: ---------- to save measures how much of the additional disposable income is saved i.e. not consumed Answer: Marginal Propensity FBQ25: A balance sheet is a financial statement that provides a snap shot of the __________ position of a business at a particular at point in time, usually the of a business’s financial year. Answer: financial FBQ26: A _______ is a bill of exchange drawn on a banker and payable on demand. Answer: cheque FBQ27: Autonomous Investment and ---------------- investment were identified by Keynes  Answer: Induced FBQ28: Cost of capital asset Expected rate of return and ----------- are determinants of Investment Answer: Market rate of interest FBQ29: What does the acronym NPV represent _________ Answer: Net Present Value FBQ30: _________ refers to the highest rate of return expected from an additional unit of a capital asset over its cost. Answer: Marginal Efficiency of Capital FBQ31: The economy of any country is basically driven by the banking system, as it contributes to ________ development Answer: economic FBQ32: National Income = Consumption + -------------- Answer: Investment FBQ33: What concept did Bernard Mandeville first introduce? Answer: Paradox of Thrift FBQ34: Cash flow of a bank involves sources and ______ of funds Answer: uses FBQ35: These are parties in a bill of exchange transaction: Drawer, Drawee, Acceptor, Endorser and -------------------- Answer: Payee FBQ36: Bills can be classified on the basis of time/period namely: Demand and ------ Answer: Time FBQ37: ------------ is the process of transferring a bill of exchange from one person to another such that the benefits written on the bill the becomes payable to the new holder Answer: Endorsement FBQ38: _________ is a term that is commonly used to describe the way business firms are managed Answer: Corporate governance FBQ39: Parties to a cheque include Drawee, Drawer and ------------- Answer: Payee FBQ40: ------------is a written order, signed by the drawer (i.e. the customer) that is used by a drawer to notify the drawee (i.e. the bank) to stop the payment of a cheque, he had previously issued. Answer: Countermand FBQ41: Types of Endorsement are Special, Blank and __________ Answer: Restrictive FBQ42: Banks channel scarce resources from surplus economic units to -------- units. Answer: deficit FBQ43: What are the basic conditions for lending? (a) Character, (b) Capacity-contractual, (c) Capital, (d) Condition and (e) __________  Answer: Collateral FBQ44: It has been previously held that for a person to be a Bank customer, it is essential and indispensable that the person should have ________ in the bank Answer: opened an account FBQ45: Two basic principles actually guide the design of the organization structure of a bank: Principle of unity of objective and ------------- Answer: Principle of efficiency FBQ46: The Nigeria banking system could be said to be a mixture of the branch banking system and the ------------ system Answer: unit banking FBQ47: What body does Chief Executives of all banks in Nigeria and the Governor of the CBN as Chairman constitute? Answer: Bankers Committee FBQ48: The three basic types of fund transmission modes used in correspondent banking are SWIFT, Mail and Telegraphic transfers (cable transfers) and ----------- Answer: Electronic FBQ49: What does this acronym, IBRD stand for? Answer: International Bank for Reconstruction and Development FBQ50: What Regulation concerns cheques and funds transfer, as per cheque collection and returns, cash and non-cash items processes through central bank, as well as fund transfer through feel wire?______ Answer: Regulation J MCQ1: What other name is commercial bank known? Answer: Acceptance house MCQ2: Banking and banking business is said to be highly Answer: regulated MCQ3: As a Banker and Lender of Last Resort to banks, the CBN performs the following functions except Answer: Printing of bank notes MCQ4: Which is the first merchant bank to be established in Nigeria? Answer: NAL Merchant Bank MCQ5: What is the basis of Institutional definition of Money? Answer: Backed by the force of law MCQ6: At what point is the evolution of money? Answer: Electronic MCQ7: What does Yd represent in this equation: Yd = C + S? Answer: Disposable income MCQ8: What does this equation Y = C + I, mean? Answer: National Income = Consumption + Investment MCQ9: The structure of banks could generally be analysed in terms of the following characteristics, except Answer: Initial paid up capital MCQ10: What is the full meaning of the acronym, SWIFT? Answer: Society for Worldwide Inter-Bank Financial Telecommunications MCQ11: Eliminate the option that is not a type of bank lending Answer: Foreign exchange loan MCQ12: The bank financial statement may contain the following information except Answer: Government budget expenses MCQ13: What other name is bank known? Answer: Acceptance house MCQ14: Why did majority of banks of the 1950s fail? Answer: Lack of proper regulation and control MCQ15: When was the Central Bank of Nigeria established? Answer: 1959 MCQ16: Which is the first merchant bank to be established in Nigeria? Answer: NAL Merchant Bank MCQ17: The following are functions of Mortgage Banks except Answer: Granting of overdraft MCQ18: Which is not a characteristic of money? Answer: Indivisibility MCQ19: What does Money Aggregate measure? Answer: Money supply MCQ20: What are the two forms of investment identified by Keynes? Answer: Autonomous and Induced MCQ21: What is marginal efficiency of investment? Answer: The rate of return expected from a given investment on a capital asset after covering all its costs, except the rate of interest MCQ22: Negotiable instruments are often times _________instruments that are acceptable means of payments in transactions Answer: near cash MCQ23: A cheque is said to be stale Answer: when it is presented after the expiration of the date specified on it. MCQ24: What is the concern of REGULATION J? Answer: Cheques and funds transfer MCQ25: In what transaction is Letter of Credit involved? Answer: International trade and commerce MCQ26: When was the local branch of the Institution of Bankers established in Nigeria? Answer: 1963 MCQ27: The bottom line of the banking business is an efficient payment and Answer: intermediary system MCQ28: Why is the Central Bank called the apex bank? Answer: It is empowered by law to regulate and supervise commercial banks MCQ29: As a Banker and Lender of Last Resort to banks, the CBN performs the following functions except Answer: Printing of bank notes MCQ30: What other name is Merchant Bank called? Answer: Wholesale bank MCQ31: Bank is an outfit legally registered to accept funds and other valuables for -------- Answer: safe keeping MCQ32: What year was seen as an era for free banking? Answer: 1952 MCQ33: Prior to the establishment of the Central bank of Nigeria in 1959 there was a Answer: West African Currency Board MCQ34: Who is charged with the responsibility of administering the Banks and Other Financial Institutions Act (BOFIA) 1991? Answer: Central Bank of Nigeria MCQ35: What is the designation of the Chief Executive Officer of the Central Bank of Nigeria? Answer: Governor MCQ36: Accepting deposit is one of the primary functions of which organisation? Answer: Commercial banks MCQ37: What determines the difference between loans and advances? Answer: Tenor MCQ38: Merchant banks are usually defined in terms of their -------------- Answer: functions MCQ39: The functions of these specialized banking institutions vary according to their -------------- Answer: types MCQ40: The ownership structure of the community banks is shared among how many groups? Answer: three MCQ41: Which is not a specialized bank? Answer: Commercial bank MCQ42: From this Economics stand point, for money to be generally acceptable, it must backed up by the ----------. Answer: institutional force of law MCQ43: Which other way can you express money as a measure of value? Answer: Units of accounts MCQ44: What is the common name for these concepts? Treasury bills, Treasury certificates, Commercial paper, Call money, Certificates of deposit, Bankers Unit Fund, Eligible Development Stock, Interbank Market, Negotiable Certificate of Deposit? Answer: Financial instruments MCQ45: Savings is defined as the difference between disposable income and-------- Answer: consumption MCQ46: What other name is Merchant Bank called? Answer: Wholesale bank MCQ47: Which one is not a type of investment? Answer: Annual investment MCQ48: The Board of Directors of a bank is not involved in -------------- Answer: The day-to-day running of the bank MCQ49: What type of instrument is a cheque? Answer: Negotiable MCQ50: Which is not a type of bank lending? Answer: Composite