Financial Institutions
Economics · 50 practice questions
Types and functions of financial institutions (traditional banks, central bank, mortgage banks, merchant banks, insurance companies, building societies); their role in economic development; money and capital markets; financial sector regulation; deposit money banks and money creation; monetary policy instruments; challenges facing financial institutions in Nigeria.
- Identify the types and functions of financial institutions and explain their roles in economic development.
- Distinguish between the money and capital markets.
- Explain the money-creation process.
- Examine monetary policy instruments and their effects.
- Appraise the challenges facing financial institutions in Nigeria.
Try a few questions
- Practice question 1
Microfinance banks mainly aim to provide financial services to
- A.only large multinational corporations
- B.only the federal government
- C.only foreign investors
- D.low-income individuals and small businesses lacking access to conventional banking
Show the answer
D. low-income individuals and small businesses lacking access to conventional banking
Microfinance targets underserved low-income and small-business customers.
- Practice question 2
A stockbroker mainly functions to
- A.print new currency notes for circulation
- B.set the minimum wage for workers
- C.collect company income tax
- D.facilitate the buying and selling of shares and securities on behalf of clients
Show the answer
D. facilitate the buying and selling of shares and securities on behalf of clients
Stockbrokers execute share trades for investors on the exchange.
- Practice question 3
Insurance premiums are calculated mainly based on
- A.the assessed level of risk being insured against
- B.the age of the insurance company
- C.the government's annual budget
- D.the exchange rate of the naira
Show the answer
A. the assessed level of risk being insured against
Premiums reflect the probability and size of the insured risk.
More UTME Economics topics
Practise with instant feedback
Answer questions one at a time and see the right answer and the reason straight away. Free to start.
Start practising