CBN Aptitude Test flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Percentage change formula

Change divided by the original value, multiplied by 100. Always divide by the starting value, not the final value, to get the correct percentage rise or fall.

Compound interest formula

Amount A = P(1 + R/100)^T, where P is principal, R the annual rate, and T the time in years. Compound interest equals A minus P.

Average speed, equal distances

When equal distances are covered at speeds a and b, average speed is 2ab/(a + b). This harmonic mean is always below the simple arithmetic average of the two speeds.

Combined work formula

If worker A completes a job in x days and B in y days, working together they finish in xy/(x + y) days, because their rates add as 1/x + 1/y.

Money multiplier

Approximately 1 divided by the reserve ratio. It shows the maximum expansion of bank deposits from each unit of new reserves in the banking system.

Real interest rate

The nominal interest rate minus the inflation rate, approximating the true return after price changes. A negative real rate means savings lose purchasing power.

GDP versus GNP

GDP counts output produced within a country's borders regardless of ownership. GNP counts output by a country's residents, including income earned abroad.

Monetary versus fiscal policy

Monetary policy adjusts money supply and interest rates and is run by the central bank. Fiscal policy adjusts taxation and government spending and is run by the government.

Liquidity

The ease and speed with which an asset can be converted into cash without significant loss of value. Cash is most liquid; property and long-term bonds are least liquid.

Law of demand

All else equal, quantity demanded falls as price rises and rises as price falls. The demand curve therefore slopes downward when price is on the vertical axis.

Budget deficit

Occurs when government spending exceeds revenue within a given period. It differs from public debt, which is the accumulated stock of past borrowing.

Currency depreciation effect

A weaker domestic currency makes exports cheaper for foreign buyers and imports more expensive at home, which can improve a trade balance over time.

Central Bank of Nigeria

Established under the CBN Act of 1958 and operational from 1 July 1959. It issues the naira, manages reserves, and conducts monetary policy from Abuja.

Naira subdivisions

The naira is Nigeria's currency and is divided into 100 kobo. The Central Bank of Nigeria is the sole issuer of legal-tender naira notes and coins.

ECOWAS headquarters

The Economic Community of West African States is headquartered in Abuja, Nigeria. It was founded in 1975 to promote regional economic integration among West African states.

Bretton Woods institutions

The World Bank and International Monetary Fund were created at the 1944 Bretton Woods conference. Both are headquartered in Washington, DC, and focus on finance and development.

UN Security Council members

Five permanent members hold veto power: China, France, Russia, the United Kingdom, and the United States. Ten non-permanent members serve two-year elected terms.

Nigerian independence date

Nigeria gained independence from Britain on 1 October 1960 and became a republic in 1963. It has 36 states plus the Federal Capital Territory, Abuja.

Contrapositive

The statement formed by negating and swapping both parts of a conditional: from 'if P then Q' comes 'if not Q then not P'. It is logically equivalent to the original.

Converse error

Assuming 'if Q then P' follows from 'if P then Q' is invalid. The converse is not logically equivalent to the original conditional statement.

Syllogism middle term

In a valid categorical syllogism, the middle term appearing in both premises must be distributed in at least one of them. Two negative premises yield no valid conclusion.

Fewer versus less

'Fewer' modifies countable plural nouns such as fewer students. 'Less' modifies uncountable nouns such as less water or less time.

Who versus whom

'Who' is the subject form and 'whom' the object form for people. 'Which' refers to things, and 'whose' shows possession for either.

Comma splice

Joining two independent clauses with only a comma. Fix it with a full stop, a semicolon, or a coordinating conjunction such as 'and' or 'but'.

Dangling modifier

An introductory phrase that fails to describe the subject of the main clause, as in 'Walking home, the rain started'. Name the true actor in the main clause.

Its versus it's

'Its' is the possessive form, as in the bank and its branches. 'It's' is the contraction of 'it is' or 'it has'.

Prepositions of time

Use 'in' for months, years, and seasons; 'on' for days and dates; 'at' for clock times and specific points such as at noon.

Alternating number series

A sequence where odd-positioned and even-positioned terms follow separate rules. Test differences within each sub-series before assuming a single pattern.

Clockwise rotation effect

Rotating a figure 90 degrees clockwise moves a top-pointing arrow to the right. A 180-degree rotation reverses every direction to its opposite.

Blood relation: uncle

The brother of one's father or mother, or the husband of one's aunt. Draw a family tree with gender markers to trace such chains reliably.

Letter position coding

Assign A=1 through Z=26, then compare shifts between consecutive letters. A constant shift indicates a Caesar-style code; varying shifts indicate a pattern.

Circular seating, facing centre

When people face the centre, a person's left is clockwise and their right is anticlockwise. Reverse this rule when people face outward.