JAMB Economics Past Questions & Answers - Page 432

2,156.

Which of these is not usually the function of a wholesaler?

A.

Transport

B.

Storage

C.

Advertising

D.

After-sale services

E.

Branding

Correct answer is E

No explanation has been provided for this answer.

2,157.

Which of the following type of capital is not rewarded by means of dividends?

A.

Ordinary shares

B.

Preference shares

C.

Cumulative shares

D.

Participating preference shares

E.

Debentures

Correct answer is E

In corporate finance, a debenture is a medium- to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest. The legal term "debenture" originally referred to a document that either creates a debt or acknowledges it, but in some countries the term is now used interchangeably with bond, loan stock or note. A debenture is thus like a certificate of loan or a loan bond evidencing the fact that the company is liable to pay a specified amount with interest and although the money raised by the debentures becomes a part of the company's capital structure, it does not become share capital.

 

All the classes of shares above are rewarded with dividends. that is, if you subscribe to any of the shares, the company would pay you dividends as returns on investment, while debenture is an certificate that acknowledges a debt owed by one person to another.

2,158.

The total value of goods and services sold and bought in a country across its border during a given period, usually a year is known as

A.

Visible trade

B.

Invisible trade

C.

Balance of payments

D.

Balance of trade

E.

Terms of trade

Correct answer is C

No explanation has been provided for this answer.

2,160.

The value of money is generally measured in reference to

A.

The interest rate charged on bank loans

B.

The general price level

C.

The size of countries gold stock

D.

The level of economic development in a country

E.

The price of stocks and shareson the stock exchange

Correct answer is B

No explanation has been provided for this answer.