WAEC Commerce Past Questions & Answers - Page 29

141.

Which of the following is a feature of mail order business?

A.

Employs many shop assistants

B.

Practices self service

C.

Provides attractive shop front

D.

Rents large warehouse

Correct answer is B

Following are the salient features of a mail order business:

(1) This business does not require much capital.
(2) The business can be carried even without owning a shop, sitting at house.
(3) In a mail order business there is no need of middlemen, as the goods are directly sent to the customers by post.

142.

Current account holders withdraw money by means of

A.

credit card

B.

draft

C.

withdrawal form

D.

cheque

Correct answer is D

Current account holders use cheques to withdraw money from their bank accounts. A cheque is an order to a bank to pay a stated sum from the drawer's account, written on a specially printed form.

143.

Which of the following acted as the central bank for West African countries before their independence?

A.

The West African Clearing House

B.

The British Bank for West Africa

C.

The West African Currency Board

D.

The African Development Bank

Correct answer is C

The West African Currency Board was established in October 1912 following the Report of a Departmental Committee set up by the Secretary of State to enquire into the currency in use in British West Africa. It served as a central bank for the member states

144.

The Central Bank's monetary policy instrument by which it buys and sells treasury bills is known as

A.

Open Market Operation

B.

Bank rate

C.

Cash reserve ratio

D.

Special deposit

Correct answer is A

Open market operations (OMO) refers to when the Federal government through the central bank purchases and sells Treasury securities on the open market in order to regulate the supply of money that is on reserve in banks, and therefore available to loan out to businesses and consumers.

145.

An efficient transport system enables a trader to

A.

widen the market for his products

B.

avoid customs examination of goods

C.

adopt better price policy

D.

reduce cost of production

Correct answer is A

It enable a trader to distribute goods to a wider market range.