WASSCE Economics · Paper 1 style

Financial institutions

One sample question with the full working. 3 more in the app, with instant feedback and repair sessions for the traps below.

The principle of insurance under which the insured must disclose all material facts is

Autmost good faith (uberrimae fidei)
Bsubrogation
Cindemnity
Dcontribution

Show the answer and working

Answer: A

Non-disclosure can void the policy.

Trap B Picks a closely related concept: Learn related terms as contrasting pairs with one-line definitions, and identify which one the stem describes.

Trap C Confuses central and commercial bank functions: Central bank: issues currency, banker to government and banks, lender of last resort, monetary policy. Commercial banks: deposits, loans, payments for the public.

Trap D Picks a closely related concept: Learn related terms as contrasting pairs with one-line definitions, and identify which one the stem describes.

Traps in Financial institutions

Picks a closely related concept
Learn related terms as contrasting pairs with one-line definitions, and identify which one the stem describes.
Confuses central and commercial bank functions
Central bank: issues currency, banker to government and banks, lender of last resort, monetary policy. Commercial banks: deposits, loans, payments for the public.
Reverses the direction of the effect
Trace the chain step by step (e.g. buying securities → banks gain cash → money supply rises) and check the sign at every link.
Chooses a true but irrelevant statement
Re-read the question's key term and test each option against it, not against whether it is true in general.
Picks another type in the same classification
Learn each classification as a table of types with one defining feature each (monopoly: one seller; monopsony: one buyer; command economy: central planning).

Practise Financial institutions (3 questions)Send to your class on WhatsApp