Past exam of the algebra, analysis and differential equations 1 course of the University of Oxford / 2010 / 2 / c / Solution

For $n\ge 2$, take the matrix whose leading $2\times 2$ block is $\left(\begin{array}{cc}0& 1\\ -1& 0\end{array}\right)$ and whose other entries are zero. Its square has leading block $-I_2$, soThis contradicts the positive definiteness required of an inner product. Even the nonzero matrix unit $E_{12}$ has $\phi (E_{12},E_{12})=0$.

The printed assertion has an exception: when $n=1$, $\phi (a,b)=ab$ is an inner product on $\mathbb{R}$. Thus the requested failure requires $n\ge 2$, a restriction absent from the printed question.