BFN203 Exam Practice Questions and Answers 2026
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The money issued by the apex bank on behalf of the government to raise funds for meeting shortfalls in revenue with which to finance recurrent government expenditure is called ____________
a.Treasury Securities
b.Treasury Certificate
c.Commercial Paper
d.Treasury Bills
Short term securities can only be traded in the ______________ market.
a.Commodity
b.Money
c.Exchange
d.Capital
The Accountant General of the Federation is vested with the responsibility of keeping:
a.Interest Income
b.Receipts and payments of the Federation
c.Debenture bonds
d. And disbursement of government funds
The formula for Earnings is; Prevailing price of stock less_________
a.Net Income
b.Dividend
c.Original Price
d.Stock Price
The money used in starting and running a business is Known an ___________
a.Investment
b.Business venture
c.Marketable security
d.Startup Capital
Beattie (2017)identifies three basic groups of investment such as ownership investment, lending investment, and ________
a.Current investment
b.Market investment
c.Cash Investment
d.Bond Investment
In Bhave Model, which phase iInvolves converting a new idea or technology into a business undertaking, which is the foundation of the creation of any business venture by an entrepreneur?
a.Opportunity recognition stage
b.Organization stage
c.Product creation stage
d.Technology set-up stage
Which of the following is not one of the parties to a bill of exchange?
a. Payer
b.payee
c.drawee
d.drawer
One of the following is not a Canon of good lending
a.capacity
b.collateral
c.character
d.composure
Which of the following is not a basic principle of lending?
a.collateral
b.capacity
c.Short-term borrowing
d.character
The money issued by the apex bank on behalf of the government to raise funds for meeting shortfalls in revenue with which to finance recurrent government expenditure is called ____________
a.Treasury Securities
b.Treasury Certificate
c.Commercial Paper
d.Treasury Bills
which of the following is the most liquid asset?
Question 10Answer
a.shares
b.bonds
c.treasury bills
d.cash
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What does investment generally involve?
a.Saving money without spending
b.Exchanging goods and services
c.Spending money with the hope of reaping financial benefits
d.Borrowing money to meet immediate needs
In finance, what does an investment involve?
a.Immediate consumption of income
b.Utilization of funds in acquisition of financial assets
c.Spending on non-essential items
d.Acquiring liabilities
Which type of investment is known for lower risk compared to ownership investments?
a.Bonds and debentures
b.stocks
c.Precious metals
d.real estate
What does the term "valuation" refer to in the context of investment?
a.Spending money without returns
b.The process of determining the value of a financial investment
c.Borrowing money for investment
d.The act of saving money
What are risks of losses as the result of unforeseen intervention by government?
a.financial risk
b.economic risks
c. social risks
d.political risks
How is capital gain measured?
a.By the disparity between original price and current market price of the product
b.By the interest earned from a bank account
c.By the amount of money borrowed
d.By the amount of money saved
What is the fundamental purpose of investment?
a.To generate earnings
b.To spend money without any return
c.To avoid spending money
d.To increase liabilities
Sources of finance can be divided into internal and ........
a.minor
b.external
c.required
d.major
Finance can be likened to a ?
a.mirror
b.sales
c.trade
d.lubricant