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Business
Finance #2
Yvonne
Harvey, Contributor
It
is so good to be with you all again.
Last week was your essay paper on
business finance. This week, as promised,
I have prepared a few multiple-choice
questions for you to do. So here goes.
1.
The only bank which can claim to be
the lender of last resort is the:
(a)
central bank
(b)
commercial bank
(c)
merchant bank
(d)
trustee savings bank
2.
One of the most important functions
of the central bank is to:
(a)
borrow money from individuals
(b)
keep deposits from commercial banks
(c)
lend money for building houses
(d)
keep deposits put through the night
safe
3.
The primary purpose or function of
the commercial bank was to:
(a)
lend money
(b)
borrow money from other banks
(c)
accept money deposits and personal
valuables
(d)
invest deposits
4.
A sou-sou is another form of:
(a)
saving money through a common bond
(b)
spending money
(c)
paying dues to a trade union
(d)
belonging to a social institution
5.
The main purpose of a merchant bank
is to:
(a)
finance traders and their trade
(b)
lend money to the public at large
(c)
act as a security
(d)
provide night safe facilities
The
following information relates to questions
6 and 7
(i)
building societies
(ii)
development banks
(iii)
commercial banks
(iv)
credit unions
6.
Which of the above institutions is
part of the capital market?
(a)
(i) and (ii) only
(b)
(ii) and (iii) only
(c)
(iii) and (iv) only
(d)
(i), (ii), (iii) and (iv)
7.
Which of the institutions form part
of the money market?
(a)
(i) and (ii) only
(b)
(iii) and (iv) only
(c)
(ii) and (iii) only
(d)
(ii) and (iv) only
8.
A credit union is founded or based
mainly on:
(a)
a common bond of all employees
(b)
the company's integrity
(c)
profits of members
(d)
the credit-worthiness of the union
9.
The stock exchange is a market place
where:
(a)
stocks are exchanged for shares
(b)
second-hand securities are bought
and sold
(c)
brokers buy and sell goods
(d)
all companies raise financial capital
10.
Savings take place when you:
(a)
buy goods and services for daily use
(b)
refrain from consuming a part or whole
of your income
(c)
use money to pay debts
(d)
borrow money
11.
Of the following, which is NOT accepted
for collateral security?
(a)
life assurance policies
(b)
titles to land or property
(c)
stocks and shares
(d)
money lent out or invested
12.
The highest rate of interest at a
commercial bank is obtained from a
(a)
current or cheque account
(b)
savings or deposit account
(c)
longer-term fixed deposits
(d)
short-term fixed deposits
13.
The primary focus of attention of
the Caribbean Development Bank is
to:
(a)
help the entire
(b)
promote individuality and self-reliance
(c)
help finance the needs of the smaller
Caribbean countries
(d)
promote employment opportunities in
the larger countries of the region
These
questions were taken from Revising
Principles of Business for CXC by
B.M.C. Abiraj. Next week I will give
you the answers to these questions.
Also, we will begin Section 8 of the
syllabus: Role of Government in an
Economy. Keep yourselves safe until
then.
Yvonne
Harvey teaches at Glenmuir High School.
Send questions and comments to kerry-ann.hepburn@gleanerjm.com
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