Financial Institutions and Public Finance Generix Content - Financial Institutions and Public Finance
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WAEC questions for "Economics :: Financial Institutions and Public Finance"
Q1

Which of the following is specialized in lending money for the purpose of developing real estate?

A

Merchant banks

B

Mortgage banks

C

Discount houses

D

Commercial banks

E
Q2

The marketing of government securities by the Central Bank is termed

A

retail banking

B

open market operations

C

selective credit control

D

credit creation

E
Q3

Which of the following serves as a banker's bank?

A

Commercial Bank

B

The Mortgage Bank

C

The Central Bank

D

Development Bank

E
Q4

The tax imposed on goods manufactured within a country is

A

an excise tax

B

a capital gains tax

C

profit tax

D

a sales tax

E
Q5

Government expenditure on the construction of roads and bridges is

A

recurrent expenditure

B

capital expenditure

C

supplementary expenditure

D

variable expenditure

E
Q6

Fiscal policy is associated with

A

taxation and government expenditure

B

re-structuring of the banks

C

injection of more money into the economy

D

reduction in economic activities

E
Q7

The Central Bank can restrict credit through

A

depreciation of assets

B

granting overdraft

C

direct investment

D

open market operation

E
Q8

Creation of money by commercial banks is done by

A

increasing the cash ratio

B

printing money

C

lending to borrows

D

issuing cheques

E
Q9

Public finance is basically an analysis of the 

A

income and expenditure of government

B

expenditure patterns of government

C

current and capital receipts of government

D

current and capital expenditure of government

E
Q10

A major use of taxation is to

A

control population growth rate

B

influence people's spending habits

C

control money supply

D

create bank creadits

E
Q11

A tax which is expressed as a given absolute sum of money per unit of a commodity is known as

A

a specific tax

B

a direct tax

C

an indirect tax

D

a value added tax

E
Q12

All indirect taxes tend to be 

A

progressive

B

regressive

C

certain

D

equitable

E
Q13

Long-term loans can be secured from

A

commercial banks

B

discount houses

C

development banks

D

acceptance houses

E
Q14

Which of the following financial institutions was originally known as a Building Society?

A

Development bank

B

Insurance company

C

Mortgage bank

D

Merchant bank

E
Q15

A non-bank financial intermediary which is regarded as a pool of risks is the 

A

co-operative society

B

stock exchange

C

insurance company

D

post office

E
Q16

A foreign exchange market deals in

A

treasury bills

B

currencies

C

government bonds

D

commodities

E
Q17

Which of the following institutions assists the government in managing the national debt?

A

Commercial Banks

B

The Central Bank

C

The Capital Market

D

The World Bank

E
Q18

If tax takes a larger proportion of the income of people with lower income, the tax is

A

progressive 

B

proportional

C

regressive

D

ad-valorem

E
Q19

Which of the following is an example of direct tax?

A

Import duties

B

Income tax

C

Export duties

D

Purchase tax

E
Q20

Monetary control measures are coordinated by

A

development banks

B

merchant banks

C

commercial bank

D

the central bank

E
Q21

The motive for holding money for investing in securities in a budget is referred to as

A

transactionary

B

speculative

C

accumulation 

D

deflationary

E
Q22

A cheque book is issued to customers of a bank operating a

A

saving account

B

time deposit account

C

current account

D

fixed deposit account

E
Q23

Amount proposed for payments of wages and salaries in a budget is regarded as part of

A

recurrent expenditure

B

direct investment

C

recurrent revenue

D

capital receipts

E
Q24

Which of the following is a form of tax evasion?

A

wrong declaration of earnings

B

payments of flat rate tax

C

constant change of employment

D

low capacity utilization

E
Q25

When the burden of a tax finally rests is called

A

tax object

B

tax rate

C

incidence of taxation

D

system of taxation

E
Q26

Which of the following is an invisible item?

A

banking services

B

Petroleum product

C

processed rice

D

processed milk

E
Q27

To a commercial bank, deposits are

A

liabilities 

B

assets

C

capital

D

cash at hand

E
Q28

The lender of last resort in the banking system is the 

A

industrial bank

B

mortgage bank

C

commercial bank

D

central bank

E
Q29

Discount a bill of exchange means the bills is

A

cashed over the counter

B

sold on the stock exchange

C

brought for less its face value

D

sold to the highest bidder

E
Q30

The central bank controls credit the economy through the use of

A

legal tender

B

travelers cheques

C

foreign exchange instruments

D

open market operations

E
Q31

Among the principles of taxation propounded by Adam Smith was that

A

a tax should be impossible to evade

B

a tax should be convenient to pay

C

no tax should be levied on food 

D

there should be no taxation without representation

E
Q32

Mr. Bala's income is $800.00 per month while that of Mr. Jatau is $1,200.00. If Messrs Bala and Jatau pay $80.00 and $120.00 respectively as taxes, the tax system is

A

progressive

B

regressive

C

proportional

D

ad-valorem

E
Q33

Government revenue from the groundnut industry is from

A

licences

B

rents

C

royalities

D

taxes

E
Q34

Open Market Operation (OMO) means the

A

provision of credit facilities by commercial banks

B

provision credit facilities by the mortgage banks

C

buying and selling of government securities by the central bank

D

procedure for the establishment of commercial banks

E
Q35

Taxes levied on commodities are

A

direct taxes

B

indirect taxes

C

poll taxes

D

investment taxes

E
Q36

One disadvantage of direct taxes is that

A

government's revenue is reduced

B

price of essential commodities fall

C

people are discourage from addition of the principle

D

firms make more profits

E
Q37

A policy by which governments restrict the amount of foreign currencies brought and sold is known as

A

devaluation

B

credit creation

C

exchange control

D

export promotion

E
Q38

Which of the following is the function of the central bank?

A

Accepting deposits from the public

B

Lending to the commercial banks

C

Discounting bills of exchange

D

Agent of payment for individuals

E
Q39

The most important function of merchant bank is the

A

issuing of currency

B

provision of short term loans

C

provision of medium and long term loans

D

provision of short and long term loans

E
Q40

Government of West African countries levy taxes to

A

prevent prices from falling

B

make people richer

C

limit the number of banks

D

finance government projects

E
Q41

Which of the following is a direct tax?

A

Import duties

B

Purchase tax

C

Export duties

D

Personal income tax

E
Q42

The tax whose rate increases as the level of income increases is known as

A

regressive tax

B

proportional tax

C

progressive tax

D

company tax

E
Q43

Public expenditure on education and health is known as expenditure on

A

general services

B

social services

C

commercial services

D

economic services

E
Q44

Budget deficit can be financed by

A

reducing the level of taxation

B

printing more money

C

lending financial institutions

D

employing more workers

E
Q45

Which of the following is a liability of a commercial bank?

A

Deposits

B

Money at call

C

Loans to customers

D

Overdrafts

E
Q46

Which of the following is a function of the Central Bank of Nigeria?

A

Serving as custodian of important valuables

B

Giving advice to customers

C

serving as bankers' bank

D

Creating credit

E
Q47

Which of the following is a function of merchant banks?

A

Minting of coins

B

Preparation of government budget

C

Keeping watch on external reserves of the country

D

Acting as acceptance houses

E
Q48

Personal savings are generally low in West Africa because of

A

the level of income of the people

B

the refusal of banks to grant loans

C

overpopulation

D

cheaper foreign currencies

E
Q49

Budget surplus implies that

A

expenditure equals revenue

B

expenditure is less than revenue

C

expenditure is greater than tax

D

direct tax is more than indirect tax

E
Q50

Commercial banks settle their daily interbank indebtedness through the

A

Money Market

B

Finance House

C

Acceptance House

D

Clearing House

E
Q51

Short-term loan can be sourced from

A

the central bank

B

development banks

C

mortgage banks

D

commercial banks

E
Q52

Public expenditure can be financed from all the following sources except

A

borrowing

B

grant-in-aid

C

royalties and rents

D

mobilization fees

E
Q53

Which of the following is direct tax?

A

Import duty

B

Export duty

C

Capital gains tax

D

Sales tax

E
Q54

Tax evasion means

A

postponing payment of tax

B

tax payment according to ability to pay

C

marking false declaration of taxable income

D

paying little amount of money as tax

E
Q55

A greater burden of tax on a product with high price elasticity of demand rest mainly on the

A

producer

B

teacher

C

civil servant

D

middlemen

E
Q56

An ad valorem tax refers to a tax

A

imposed on exports

B

on goods manufactured in the country

C

based on the value of the commodity

D

levied on income

E
Q57
The main feature of regressive taxation is that its rate
A
is higher when income is higher
B
is equal tax for all categories of people
C
remains constant when income increases
D
reduces when income increases
E
Q58
Which of the following is an item of government recurrent expenditure?
A
Road construction
B
Port facilities
C
Wages and Salaries
D
Telecommunication projects
E
Q59
Deficit budget means that government's
A
expenditure is equal to its revenue
B
planned expenditure is more than the estimated income
C
planned income and expenditure targets cannot be achieved
D
expenditure is less than estimated government
E
Q60
Foreign exchange control in most West African countries is enforced by the
A
development banks
B
merchant banks
C
ministry of economic planning
D
central banks
E