Revision and Review Test Questions Business Studies JSS 2 First Term Lesson Notes Week 12

Business Studies JSS 2 First Term Revision – Week 12

Part A: Review and Revision

Frequently Asked Questions (FAQs)

1. What is a commercial bank?
   A commercial bank is a financial institution that provides services such as accepting deposits, giving loans, and facilitating payments.
2. What are the main services offered by banks?
   Banks offer savings accounts, current accounts, loans, payment services, and investment services.
3. What is ethical banking?
   Ethical banking involves conducting banking activities in a responsible and transparent manner, focusing on customer trust and integrity.
4. What is the difference between a savings account and a current account?
   A savings account is intended for saving money and earning interest, while a current account is for everyday transactions without restrictions.
5. What is liquidity?
   Liquidity refers to how quickly an asset can be converted into cash without losing value.
6. What are channels of distribution?
   Channels of distribution are the paths through which goods and services move from producers to consumers, including wholesalers and retailers.
7. What roles do wholesalers play in distribution?
   Wholesalers buy in bulk from manufacturers and sell to retailers, helping to distribute products efficiently.
8. What is a capital market?
   The capital market is a financial market where long-term securities, such as stocks and bonds, are issued and traded.
9. How do banks determine interest rates?
   Interest rates are determined by factors such as supply and demand, inflation, and central bank policies.
10. What is the importance of transparency in banking?
    Transparency builds customer trust and helps prevent fraud and unethical practices.
11. What are the main ethical issues in banking?
    Ethical issues include fraud, customer privacy, and the fair treatment of clients.
12. What is the role of a retailer in distribution?
    Retailers sell goods directly to consumers and often provide customer service and support.
13. What is the purpose of a loan?
    A loan provides funds to borrowers with the expectation of repayment, usually with interest.
14. What are the features of a market?
    Features of a market include buyers and sellers, a place for transactions, competition, and price determination.
15. What is buying and selling by cash?
    Buying and selling by cash involves immediate payment at the time of the transaction.
16. What is the difference between cash and credit transactions?
    Cash transactions involve immediate payment, while credit transactions allow for payment at a later date.
17. What happens if chemicals are handled improperly?
    Improper handling of chemicals can lead to accidents, injuries, or environmental harm.
18. What are licensed chemical vendors?
    Licensed chemical vendors are businesses authorized to sell chemicals safely and in compliance with regulations.
19. What is the purpose of bank fees?
    Bank fees help cover operational costs and can include charges for services like account maintenance and transactions.
20. What is the effect of wrong handling of chemicals?
    Wrong handling of chemicals can lead to contamination, health risks, and legal issues.

Part B: Objective Questions

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

1. A _________ bank provides services to individuals and businesses.
   a) Cooperative
   b) Commercial
   c) Central
   d) Savings
2. The primary function of banks is to accept _________.
   a) Deposits
   b) Withdrawals
   c) Payments
   d) Loans
3. Ethical banking ensures ________ in transactions.
   a) Transparency
   b) Profit
   c) Interest
   d) Fees
4. A _________ account is used for regular transactions.
   a) Current
   b) Savings
   c) Fixed
   d) Loan
5. The process of lending money is known as _________.
   a) Borrowing
   b) Lending
   c) Depositing
   d) Saving
6. Banks earn profit primarily from _________.
   a) Fees
   b) Donations
   c) Taxes
   d) Interest
7. The capital market is where _________ are traded.
   a) Goods
   b) Services
   c) Securities
   d) Commodities
8. A _________ is a financial product used to secure a loan.
   a) Grant
   b) Mortgage
   c) Deposit
   d) Share
9. _________ is crucial for maintaining customer trust in banks.
   a) Competition
   b) Transparency
   c) Regulation
   d) Fees
10. A wholesaler typically sells products to _________.
    a) Consumers
    b) Manufacturers
    c) Retailers
    d) Distributors
11. Interest rates can be affected by _________.
    a) Supply and demand
    b) Customer requests
    c) Bank location
    d) Time of year
12. A savings account is best for _________.
    a) Spending
    b) Earning interest
    c) Daily transactions
    d) Business loans
13. A credit transaction allows for payment at a _________.
    a) Discount
    b) Later date
    c) Higher price
    d) Cash value
14. Banks must protect customer _________ to maintain trust.
    a) Information
    b) Assets
    c) Interests
    d) Accounts
15. A loan’s repayment includes _________.
    a) Only the principal
    b) Fees only
    c) Interest and principal
    d) Taxes
16. The term “liquidity” refers to how quickly assets can be turned into _________.
    a) Goods
    b) Cash
    c) Loans
    d) Investments
17. Ethical issues in banking can lead to loss of _________.
    a) Customers
    b) Revenue
    c) Interest
    d) Loans
18. The money market is primarily used for _________.
    a) Long-term investments
    b) Short-term financing
    c) Real estate transactions
    d) Stock trading
19. A current account usually has _________.
    a) Interest
    b) Fees
    c) Limits
    d) High balances
20. The role of a retailer is to sell products to _________.
    a) Wholesalers
    b) Manufacturers
    c) Consumers
    d) Banks

Part C: Theory Questions

Simple Short Answer Questions

1. What is the definition of a commercial bank?
2. List three services offered by banks.
3. What does ethical banking mean?
4. How does liquidity affect financial transactions?
5. Describe the function of wholesalers in distribution.
6. What are the features of a market?
7. How do banks earn profit?
8. Explain the difference between cash and credit transactions.
9. What are the main ethical issues faced by banks?
10. What is the purpose of a savings account?
11. Define the term “capital market.”
12. How do interest rates influence borrowing?
13. What role do retailers play in the distribution process?
14. Why is customer privacy important in banking?
15. Describe the implications of handling chemicals improperly.
16. What is a mortgage?
17. How can banks maintain transparency?
18. Explain the concept of buying and selling in cash.
19. What are licensed chemical vendors?
20. What happens if a bank fails to protect customer information?

Part D: True or False Questions

1. A commercial bank only provides loans to businesses. (True/False)
2. Ethical banking focuses on transparency and customer trust. (True/False)
3. All savings accounts offer the same interest rates. (True/False)
4. Wholesalers sell directly to consumers. (True/False)
5. The capital market is for short-term securities. (True/False)
6. Banks charge interest on loans. (True/False)
7. Liquidity is not important for banks. (True/False)
8. Current accounts typically have withdrawal limits. (True/False)
9. All bank transactions are confidential. (True/False)
10. Banks have no responsibility to prevent fraud. (True/False)
11. Retailers help to distribute goods to consumers. (True/False)
12. The money market deals with long-term financing. (True/False)
13. Interest rates are always fixed and do not change. (True/False)
14. Ethical issues can damage a bank’s reputation. (True/False)
15. A loan requires repayment of both interest and principal. (True/False)
16. Transparency can lead to higher customer loyalty. (True/False)
17. A savings account is designed for frequent transactions. (True/False)
18. Liquidity refers to how quickly assets can be converted into cash. (True/False)
19. Banks cannot offer investment services. (True/False)
20. All banks have the same policies regarding customer information. (True/False)

Part E: Fill-in-the-Gaps Questions

1. A __________ bank offers various financial services to individuals and businesses.
2. Banks primarily earn profit through __________ on loans.
3. Ethical banking emphasizes __________ in all dealings with customers.
4. A __________ account is best for regular transactions.
5. Liquidity measures how quickly assets can be turned into __________.
6. Wholesalers distribute products to __________.
7. The __________ market is where long-term securities are traded.
8. Banks must protect customer __________ to build trust.
9. Interest rates are influenced by __________ and demand.
10. A __________ is a loan secured by real estate.
11. Ethical banking helps prevent issues like __________ and fraud.
12. Retailers sell goods directly to __________.
13. A __________ transaction requires immediate payment.
14. The money market is for __________ financing.
15. A current account allows for unlimited __________.
16. Banks may charge fees for account __________.
17. Transparency in banking can enhance customer __________.
18. __________ accounts are meant for saving money over time.
19. The capital market facilitates raising __________ for businesses.
20. Handling chemicals improperly can lead to serious __________ risks.

This comprehensive revision will help students solidify their understanding of the topics covered throughout the term