JAMB Past Questions and Answers - Page 100

496.

A loan to a customer with a cheque account at a bank in which the account is allowed to go into debit is

A.

overdraft

B.

advance

C.

interest

D.

commission

Correct answer is A

Overdraft; a deficit in a bank account caused by drawing more money than the account holds. The overdraft allows the account holder to continue withdrawing money even when the account has no funds in it or has insufficient funds to cover the amount of the withdrawal.

497.

Which of the following attracts only interest but leaves the capital unpaid

A.

a long-term loan

B.

a development bond

C.

a redeemable bond

D.

an irredeemable bond

Correct answer is D

Irredeemable bond; a government bond which has no date of maturity and which therefore provides interest but can never be redeemed at full value.

498.

The document that explains the types of shares available for sale to the public is

A.

a prospectus

B.

an invoice

C.

an open indent

D.

a closed indent

Correct answer is A

prospectus is a document giving details of a share offer for the benefit of investors.

499.

An association of voluntary organizations that work together for a common aim while retaining their independence is a

A.

syndicate

B.

merger

C.

cartel

D.

consortium

Correct answer is C

Cartel; is a group of independent market participants, whose goal is to improve their profits and/or market position by reducing their mutual competition.

500.

The coming together of a manufacturing business with a firm that markets its products is

A.

backward integration

B.

a consortium

C.

forward integration

D.

a syndicate

Correct answer is C

Forward integration is a business strategy that involves a form of vertical integration whereby business activities are expanded to include control of the direct distribution or supply of a company's products.