POST UTME NILE UNIVERSITY 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A bank is considering a new loan product that offers a variable interest rate. The interest rate is expected to fluctuate based on market conditions. What type of risk is the bank taking on by offering this loan product?
A. Credit risk
B. Liquidity risk
C. Market risk
D. Operational risk
Question 2
A company is considering two different marketing strategies: a high-low pricing strategy and a penetration pricing strategy. Which of the following is a characteristic of penetration pricing?
A. It involves setting a high price to attract a niche market
B. It involves setting a low price to attract a large market share
C. It involves setting a price that is higher than the competition
D. It involves setting a price that is lower than the competition
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm uses 100 units of labor and 400 units of capital, calculate the quantity produced.
A. 20
B. 30
C. 40
D. 50
Question 4
A company that specializes in providing insurance coverage for businesses against various risks is an example of a(n) _______________________ insurer.
A. Reinsurance
B. Direct insurer
C. Broker
D. Underwriter
Question 5
A firm's cost function is given by C = 2Q^2 + 10Q + 100. If the firm produces 10 units, what is the total cost?
A. ₦1,100
B. ₦1,200
C. ₦1,300
D. ₦1,400
Question 6
A company's home and foreign trade involves the use of a free trade agreement. What is the primary advantage of this agreement?
A. Reduced tariffs.
B. Increased trade barriers.
C. Improved trade relations.
D. Increased competition.
Question 7
A company has a policy of paying a fixed amount of money to its employees for every unit of product they sell. What type of insurance is the company using?
A. Life insurance
B. Health insurance
C. Disability insurance
D. Commission insurance
Question 8
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦1,000,000, what is the minimum amount of cash it must hold in reserve?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦400,000
Question 9
In a foreign trade transaction, a Nigerian exporter agrees to sell 1000 units of goods to a foreign buyer at the exchange rate of 1 = ₦450. If the exporter receives a payment of 5000, what is the amount in Nigerian Naira, rounded to the nearest naira?
A. ₦2250000
B. ₦2500000
C. ₦2750000
D. ₦3000000
Question 10
A firm's warehousing and stock control system involves the use of a just-in-time inventory system. What is the primary advantage of this system?
A. Reduced inventory costs.
B. Improved customer service.
C. Increased inventory turnover.
D. Reduced transportation costs.
Question 11
A bank's primary function is to act as a _______________________ between borrowers and lenders.
A. Agent
B. Broker
C. Dealer
D. Intermediary
Question 12
A company is considering investing in a new project. The project has a high potential for returns, but it also carries a high level of risk. What is the primary consideration for the company when deciding whether to invest in the project?
A. The potential returns on investment
B. The level of risk involved
C. The company's financial resources
D. The competition in the market
Question 13
A logistics company has a warehouse with a capacity of 10,000 units. If the company receives a shipment of 5,000 units, what is the probability that the warehouse will be full?
A. 0.5
B. 0.6
C. 0.7
D. 0.8
Question 14
A firm's revenue function is given by R = 100P - 2P^2, where R is the total revenue and P is the price. If the firm wants to maximize its revenue, what price should it charge?
A. 20
B. 30
C. 40
D. 50
Question 15
A company is considering outsourcing its production to a foreign country. What type of specialization is the company engaging in?
A. Vertical specialization
B. Horizontal specialization
C. Product specialization
D. Process specialization

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