Mid-Term Test First Term Business Studies JSS 2 First Term Lesson Notes Week 7

Business Studies JSS 2 First Term Mid-Term Assessment – Week 7

Assessment Components

Part A: Objective Questions

Fill-in-the-Blank Questions with Options (a, b, c, d)

1. A _________ bank is a financial institution that provides services like loans and deposits.
   a) Commercial
   b) Central
   c) Investment
   d) Cooperative
2. The primary service of banks is to accept _________.
   a) Loans
   b) Deposits
   c) Withdrawals
   d) Investments
3. Ethical banking involves ensuring ________ in all transactions.
   a) Profit
   b) Fraud
   c) Transparency
   d) Risk
4. A _________ account is designed for everyday transactions.
   a) Savings
   b) Current
   c) Fixed
   d) Loan
5. The process of lending money with the expectation of repayment is known as _________.
   a) Borrowing
   b) Investing
   c) Lending
   d) Saving
6. The services provided by commercial banks include _________.
   a) Only loans
   b) Deposits and loans
   c) Only deposits
   d) Insurance
7. Banks charge _________ on loans given to customers.
   a) Fees
   b) Interest
   c) Commissions
   d) Taxes
8. The main purpose of a savings account is to _________.
   a) Withdraw daily
   b) Earn interest
   c) Spend freely
   d) Take loans
9. A bank’s responsibility to protect customer information is known as _________.
   a) Security
   b) Privacy
   c) Confidentiality
   d) Transparency
10. _________ is a key ethical issue in banking.
    a) Competition
    b) Fraud
    c) Marketing
    d) Networking
11. The _________ market is where companies issue shares to raise capital.
    a) Money
    b) Commodity
    c) Capital
    d) Foreign
12. The role of a wholesaler is to _________.
    a) Sell directly to consumers
    b) Distribute products in bulk
    c) Manufacture goods
    d) Provide services
13. A customer’s trust in a bank can be affected by _________.
    a) High interest rates
    b) Ethical practices
    c) Low fees
    d) Free services
14. A bank provides payment services to facilitate _________.
    a) Investments
    b) Withdrawals
    c) Transactions
    d) Deposits
15. Commercial banks earn profit through _________.
    a) Fees
    b) Taxes
    c) Loans
    d) Donations
16. The term “liquidity” refers to the _________ of an asset.
    a) Safety
    b) Stability
    c) Availability
    d) Value
17. A loan that is paid back in installments is called a _________.
    a) Mortgage
    b) Grant
    c) Fixed loan
    d) Revolving loan
18. Interest rates are determined by _________.
    a) Government regulations
    b) Supply and demand
    c) Bank policies
    d) Customer requests
19. A financial institution that provides investment services is known as a _________.
    a) Commercial bank
    b) Credit union
    c) Investment bank
    d) Savings bank
20. A current account typically offers _________.
    a) Higher interest rates
    b) Unlimited withdrawals
    c) Fixed deposits
    d) Loans

Part B: Theory Questions

Short Answer Questions

1. Define a commercial bank.
2. What are the primary functions of a commercial bank?
3. List three services provided by banks.
4. Explain what is meant by ethical banking.
5. Why is transparency important in banking?
6. Describe the difference between a savings account and a current account.
7. What is the role of interest in banking?
8. Define liquidity in financial terms.
9. What are the ethical issues banks face?
10. How do banks protect customer information?
11. Explain the importance of loans to a bank’s business model.
12. What is a capital market?
13. Describe the function of a wholesaler in distribution.
14. What is the purpose of payment services in banks?
15. How can customer trust impact a bank’s operations?
16. Define the term “investment bank.”
17. What factors determine interest rates?
18. Explain the difference between short-term and long-term loans.
19. What is a mortgage?
20. Why do banks need to manage risks?

Part C: True or False Questions

1. A commercial bank only provides loans to businesses. (True/False)
2. Ethical issues in banking include customer privacy. (True/False)
3. Savings accounts typically offer lower interest rates than loans. (True/False)
4. Wholesalers sell products directly to consumers. (True/False)
5. Banks must ensure transparency in their operations. (True/False)
6. A current account is best for saving money. (True/False)
7. Commercial banks can engage in investment banking. (True/False)
8. The capital market deals with short-term investments. (True/False)
9. A loan is a liability for the borrower. (True/False)
10. Banks are not responsible for preventing fraud. (True/False)
11. Liquidity refers to how quickly an asset can be converted to cash. (True/False)
12. All bank transactions are completely private. (True/False)
13. Interest rates are always fixed. (True/False)
14. Ethical banking practices build customer trust. (True/False)
15. A deposit account is the same as a loan account. (True/False)
16. Transparency can lead to increased customer loyalty. (True/False)
17. Commercial banks cannot offer insurance services. (True/False)
18. The money market is primarily for short-term financing. (True/False)
19. Banks can lose customers due to unethical practices. (True/False)
20. Current accounts usually have transaction limits. (True/False)

Part D: Fill-in-the-Gaps Questions

1. A __________ bank provides services like accepting deposits and giving loans.
2. The main purpose of a savings account is to __________.
3. Banks charge __________ on the loans they provide.
4. Ethical banking ensures __________ in all transactions.
5. The __________ market is where long-term securities are traded.
6. A __________ account is used for everyday transactions.
7. Liquidity refers to how quickly an asset can be __________ to cash.
8. Commercial banks provide __________ services to help customers make payments.
9. The term “interest” refers to the __________ charged on borrowed money.
10. A __________ is a loan secured by real estate.
11. Banks must protect __________ to maintain customer trust.
12. The __________ market deals with short-term loans and securities.
13. Fraud is an ethical __________ banks must guard against.
14. A __________ account typically offers higher interest rates.
15. Banks earn profit through fees and __________ on loans.
16. Ethical issues in banking include __________ of customer information.
17. The role of a wholesaler is to distribute goods to __________.
18. Interest rates can vary based on __________ and demand.
19. A financial institution that invests in stocks is called an __________ bank.
20. Current accounts allow for __________ withdrawals without penalties.

This assessment covers key concepts learned throughout the first half of the term and prepares students for a deeper understanding of business studies.