4th Quarter General Businesses Mid Exam for Grade 11 (2012E.C)
Time Allowed: - 30 min
Name ___yacob shifare________________________ Section11C___ №___26_______
I.
Write “True” if the statement is correct and “False” if the statement is incorrect.
(1 point each)
1.
All economic activity is measured and facilitated by money.
2.
Salt bar was the primary article of exchange in Ethiopia primitive society.
3.
Whole life insurance is more expensive than term life insurance
4.
Money kept in bank is saver than in any place.
5.
Over drafts is usually grant loans to any customers.
6.
A bond is a credit of the issuing corporation.
Part II. Matching item
Match the premises given under column “B” with right answers under column “A”.
(1 point each)
“A”
“B”
7. Mahber,Eder, Ekub
A) Good faith
8. Modern bank in Ethiopia began in
B) traditional financial service
9. Insurance
C) Protection against financial loss provide by insurer
10. Principle of insurance
D) 1950
11.Insurable risk
E) Accidental destruction
12.Overdraft
F) 1920
G) Withdraw more than your deposit
III .Choose the correct answer from the given alternatives. (1 point each)
13. Which of the following is major function of money?
A. stored value
C. Standard of differed payment
B. medium of exchange
D. All are answers
14. Modern banking in Ethiopia began in
A.1968
C. 1940
B.1905
D. 1985
15 .Which of the following is not the responsibility of NBE?
A. Preparing government bond
C. Receive saving
B. Acting as an agent of government
D. Issuing national currency
16. A short term debt obligation backed by the government with maturity of less than one year.
A. Treasury bill
B. debenture
C. risk
D. Endowment
17.Which of the following is originated for protection against the risk of shipping goods at sea.
A. Lightening
B. fire
C. marine
D. road
18.Which of the following is not the possible source of capital for investment?
A. Owner’s capital
C .equity capital
B. Global economy
D. loan or debt finance
19.The first bank established in Addis Ababa by
A. National bank
C .State of bank
B. Bank of Abyssinia
D. Commercial bank
20. The following risk may be either favorable or unfavorable consequence in the society.
A. Pure risk
C. Speculative risk
B. Self-insurance
D. Sound management