Examination on Business Studies
Class: JSS 2
Term: Second Term
Time: 1 Hour
Total Marks: 70

SECTION A: OBJECTIVES (40 Marks)
Instruction: Answer all questions.

1. ________ is a financial institution that accepts deposits and grants loans. (a) Bank (b) Office (c) Shop (d) School
2. Which of these is not a document handled by a receptionist? (a) Visitors book (b) Request form (c) Telephone pad (d) School register
3. The correct step in answering a telephone call is to first ________. (a) ask “who is speaking?” (b) identify yourself and your office (c) hang up (d) ask for their name
4. The ________ machine is used to stamp postage on outgoing mail. (a) typing (b) franking (c) printing (d) binding
5. Which of the following is a type of bank account? (a) Open account (b) Closed account (c) Savings account (d) Debit account
6. All of these are types of modern banking services except ________. (a) ATM services (b) Money transfer (c) Cheque book (d) Online banking
7. An example of an ethical issue in banking is ________. (a) fair interest rates (b) transparency (c) fraud (d) good customer service
8. Which of these is NOT a principle of insurance? (a) Utmost good faith (b) Indemnity (c) Insurable interest (d) Unlimited liability
9. The main reason for taking life assurance is to ________. (a) get rich quick (b) provide financial security for dependants (c) buy a new car (d) pay for holidays
10. ________ is a written communication exchanged between businesses or individuals. (a) Letter (b) Office correspondence (c) Memo (d) Report
11. Which of these is not a type of office document? (a) Invoice (b) Receipt (c) Visitors book (d) Storybook
12. The book used to record details of outgoing mail is called the ________. (a) visitors book (b) postage book (c) ledger (d) telephone directory
13. Which of the following is a service offered by commercial banks? (a) Issuing currency (b) Granting loans (c) Managing government accounts (d) Controlling monetary policy
14. All of these are types of insurance except ________. (a) Marine insurance (b) Vehicle insurance (c) Food insurance (d) Aviation insurance
15. Which of these is NOT a function of insurance? (a) Spreading risk (b) Providing capital for investment (c) Preventing accidents (d) Promoting economic growth
16. The main reason for using an ATM card is to ________. (a) store money (b) access cash and perform transactions (c) make phone calls (d) open a new bank account
17. A document used to acknowledge payment received is a ________. (a) invoice (b) receipt (c) quotation (d) memo
18. Which of these is not a type of motor vehicle insurance? (a) Third party (b) Comprehensive (c) Fire (d) Third party, fire and theft
19. The correct step in handling incoming mail is to first ________. (a) open all envelopes (b) sort the mail (c) throw away junk mail (d) deliver to recipient
20. ________ is a contract between two parties where one party agrees to pay for potential future losses of another. (a) Banking (b) Insurance (c) Investment (d) Saving
21. The ________ bank is responsible for controlling the money supply of a country. (a) commercial (b) development (c) central (d) microfinance
22. An example of a modern money transfer service is ________. (a) sending a letter (b) Western Union (c) bank draft (d) cheque payment
23. Which of the following is a type of marine insurance policy? (a) Fire policy (b) Hull policy (c) Life policy (d) Burglary policy
24. All of these are reasons for taking life assurance except ________. (a) providing security for family (b) saving for retirement (c) covering medical expenses (d) paying off debts
25. Which is NOT a service offered by commercial banks? (a) Accepting deposits (b) Granting loans (c) Issuing currency (d) Providing safe deposit boxes
26. The main purpose of a visitors book is to ________. (a) record staff attendance (b) track visitors and their purpose (c) list important phone numbers (d) keep a record of outgoing mail
27. The correct definition of an overdraft is ________. (a) money deposited into a bank account (b) permission to withdraw more money than is in an account (c) a type of loan (d) a bank statement
28. Which of these is not a type of life assurance? (a) Whole life (b) Term life (c) Endowment (d) Vehicle life
29. ________ is a document issued by a bank to a payee, instructing another bank to pay a specified sum of money. (a) Cheque (b) Bank draft (c) ATM receipt (d) Deposit slip
30. The ________ principle of insurance states that the insured should not profit from a loss. (a) insurable interest (b) subrogation (c) indemnity (d) utmost good faith
31. An example of an office document is ________. (a) a novel (b) an invoice (c) a newspaper (d) a comic book
32. Which of the following describes foreign exchange? (a) Exchanging local currency for foreign currency (b) Sending mail abroad (c) Trading goods internationally (d) Transferring money within the same country
33. All of these are types of marine insurance except ________. (a) Hull insurance (b) Cargo insurance (c) Freight insurance (d) Theft insurance
34. Which is NOT a feature of a current account? (a) Allows frequent withdrawals (b) Usually earns high interest (c) Cheque book facility (d) Suitable for businesses
35. The main function of a central bank is to ________. (a) provide loans to individuals (b) control the banking system and monetary policy (c) accept deposits from the public (d) offer insurance services
36. The ________ is an electronic terminal that allows customers to perform basic transactions without human assistance. (a) telephone (b) computer (c) ATM (d) calculator
37. An example of an insurance policy that covers damage to your own vehicle and others is ________. (a) Third party (b) Fire (c) Comprehensive (d) Burglary
38. Which of the following is a record of all incoming and outgoing mail? (a) Telephone pad (b) Mail register (c) Visitors book (d) Request form
39. ________ insurance covers loss or damage to goods being transported by sea. (a) Fire (b) Burglary (c) Marine (d) Aviation
40. The main use of office documents is to ________. (a) entertain staff (b) facilitate communication and record keeping (c) decorate the office (d) store personal items

SECTION B: THEORY (30 Marks)
Instruction: Answer any THREE questions.

Question 1
(a) Define office correspondence. (2 marks)
(b) List three (3) documents handled by a receptionist. (3 marks)
(c) Explain the purpose of a postage book in an office. (3 marks)
(d) State two (2) uses of office documents. (2 marks)

Question 2
(a) What is a bank? (2 marks)
(b) Differentiate between a savings account and a current account. (3 marks)
(c) Enumerate three (3) services offered by commercial banks. (3 marks)
(d) List two (2) modern banking services. (2 marks)

Question 3
(a) Define insurance. (2 marks)
(b) Explain any three (3) principles of insurance. (3 marks)
(c) Differentiate between Third Party and Comprehensive motor vehicle insurance. (3 marks)
(d) Mention two (2) types of insurance. (2 marks)

Question 4
(a) What is an overdraft? (2 marks)
(b) State three (3) reasons why people take life assurance. (3 marks)
(c) Explain the meaning of Foreign Exchange (FOREX). (3 marks)
(d) List two (2) ethical issues in banking. (2 marks)

Objective Marking Scheme

Question 1 – ✅ (a) Bank
Question 2 – ✅ (d) School register
Question 3 – ✅ (b) identify yourself and your office
Question 4 – ✅ (b) franking
Question 5 – ✅ (c) Savings account
Question 6 – ✅ (c) Cheque book
Question 7 – ✅ (c) fraud
Question 8 – ✅ (d) Unlimited liability
Question 9 – ✅ (b) provide financial security for dependants
Question 10 – ✅ (b) Office correspondence
Question 11 – ✅ (d) Storybook
Question 12 – ✅ (b) postage book
Question 13 – ✅ (b) Granting loans
Question 14 – ✅ (c) Food insurance
Question 15 – ✅ (c) Preventing accidents
Question 16 – ✅ (b) access cash and perform transactions
Question 17 – ✅ (b) receipt
Question 18 – ✅ (c) Fire
Question 19 – ✅ (b) sort the mail
Question 20 – ✅ (b) Insurance
Question 21 – ✅ (c) central
Question 22 – ✅ (b) Western Union
Question 23 – ✅ (b) Hull policy
Question 24 – ✅ (c) covering medical expenses
Question 25 – ✅ (c) Issuing currency
Question 26 – ✅ (b) track visitors and their purpose
Question 27 – ✅ (b) permission to withdraw more money than is in an account
Question 28 – ✅ (d) Vehicle life
Question 29 – ✅ (b) Bank draft
Question 30 – ✅ (c) indemnity
Question 31 – ✅ (b) an invoice
Question 32 – ✅ (a) Exchanging local currency for foreign currency
Question 33 – ✅ (d) Theft insurance
Question 34 – ✅ (b) Usually earns high interest
Question 35 – ✅ (b) control the banking system and monetary policy
Question 36 – ✅ (c) ATM
Question 37 – ✅ (c) Comprehensive
Question 38 – ✅ (b) Mail register
Question 39 – ✅ (c) Marine
Question 40 – ✅ (b) facilitate communication and record keeping