BFN 203 NOUN TMA Past Questions & Answers 2019

1. Question
A major advantage of Hedging is:
Answer
Lower the risk of Investment

2. Question
In financial terms Hedging means:
Answer
The investment made in order to reduce the risk of adverse price movement in financial assets.

3 .Question
One advantage of Diversification is:
Answer
Risk Management

4. Question
A basic diversified portfolio might include:
Answer
Several investment categories such as stocks, bonds,s, and cash.

5. Question
Investment in Finance means:
Answer
Money or Fund committed into investible securities, financial instruments, and all forms of business ventures.

6. Question
The strategic role of the entrepreneur in creating a new venture revolves around the following:
Answer
All of the above

7. Question
According to Cambridge Dictionary (2017), Venture Creation is:
Answer
The process of converting a new idea or technology into a business undertaking.

8. Question
The following are examples of investment except one
Answer
Ownership Investment and Trade Mark

9. Question
The following characteristic has been identified with investment.
Answer
All of the above

10. Question
Earn from Investment could be expressed as follows:
Answer
Prevailing price of stock less original price
 

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11. Question
Investment in real property is:
Answer
Capital Intensive.

12. Question
Investment in Real property refers to:
Answer
Investing in housing and landed property.

13. Question
Derivatives are not used for one of the followings:
Answer
Selling of shares at the stock exchange

14. Question
One of the following is not a common variant of Derivative contracts
Answer
Public offer

15. Question
A personalized contract between two parties for future payment at the present market price.
Answer
Forwards contract

16. Question
The two types of Derivatives are:
Answer
Over-the-Counter(OTC) derivatives and Exchange-Traded derivatives (ETD)

17. Question
Derivatives have the following characteristics, except
Answer
Terms under which payments are to be made between the parties and the contractor.

18. Question
A Derivatives in finance means:
Answer
A contract that originates its value from the performance of an underlying entity.

19. Question
One of the ways to invest wisely in financial assets is through:
Answer
Speculation

20. Question
In finance palance Arbitrage refer to:
Answer
The practice of taking advantage of a price difference between two or more financial markets.
 

Nairastreet

Administrator
Staff member
21. Question
A major advantage of Hedging is:
Answer
Lower the risk of Investment

22. Question
In financial terms Hedging means:
Answer
The investment made in order to reduce the risk of adverse price movement in financial assets.

23. Question
One advantage of Diversification is:
Answer
Risk Management

24. Question
A basic diversified portfolio might include:
Answer
Several investment categories such as stocks, bonds, and cash.

25.Question
Investment in Finance means:
Answer
Money or Fund committed into investible securities, financial instruments and all forms of business ventures.

26. Question
The strategic role of the entrepreneur in creating a new venture revolves around the following:
Answer
All of the above

27. Question
According to Cambridge Dictionary (2017), Venture Creation is:
Answer
The process of converting a new idea or technology into a business undertaking.

28. Question
The following are examples of investment except one
Answer
Ownership Investment and Trade Mark

29. Question
The following characteristic has been identified with investment.
Answer
All of the above

30. Question
Earn from Investment could be expressed as follows:
Answer
Prevailing price of stock less original price
 
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