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WAEC questions for "Commerce :: Finance and Financial Institutions"
Q1
A stale cheque is one on which the date for payment is
A
overdue
B
yet to come
C
missing
D
due
E
Q2
When an order cheque is endorsed it becomes a
A
confirmed cheque
B
bearer cheque
C
dishonoured cheque
D
cleared cheque
E
Q3
The authority given to a bank to make regular payments on behalf of a customer is
A
credit transfer.
B
bank endorsement.
C
standing order.
D
bank draft.
E
Q4
The rate of turnover is the number of times within a given period that
A
stock is sold and replaced.
B
closing stock is sold and replaced.
C
purchases are added to stock.
D
average stock is sold.
E
Q5
The letter R/D on a cheque shows that the cheque is
A
paid
B
dishonoured
C
certified
D
accepted
E
Q6
Stock, shares and debentures traded in the stock exchange market are called
A
bears.
B
bulls.
C
securities.
D
collaterals
E
Q7
Exchange is facilitated by
A
taxation.
B
quotas.
C
specialization.
D
good supervision.
E
Q8
The nominal value of KC Ltd's share is 50k and the market value is 70k. This means that the company's shares are selling
A
at par
B
ex dividend
C
cum dividend
D
at premium
E
Q9
Which of the following justifies is not an example of Marine Insurance?
A
Fidelity
B
Hull
C
cargo
D
Freight
E
Q10
One of the main objectives of International Bank reconstruction and Development (IBRD) is to
A
settle interbank indebtedness.
B
lend to poor countries.
C
oversee the activities of banks abroad.
D
encourage trade liberalization among members.
E
Q11
Which of the following is not a function of a commercial bank?
A
Collection of deposit
B
Safe custody services
C
Issuing of currency
D
Agents of payment
E
Q12
Information requested from a bank concerning the credit worthiness of a new customer to a business is
A
private enquiry.
B
status enquiry
C
general enquiry
D
letter of enquiry.
E
Q13
The amount paid regularly by the assured to the insurer is
A
dividend
B
premium
C
interest
D
indemnity
E
Q14
Net profit is calculated as
A
sales less purchases
B
sales less expensive
C
gross profit less expensive
D
gross profit less purchases
E
Q15
A cheque dated 30th July,2004 but presented for payment on 28th February, 2005 is
A
post-dated.
B
crossed.
C
opened.
D
stale.
E
Q16

The average stock is

A

₦60,000.00

B

₦35,000.00

C

₦30,000.00

D

₦25,000.00

E
Q17

The gross profit is

A

₦65,000.00

B

₦55,000.00

C

₦30,000.00

D

₦20,000.00

E
Q18

Which of the following receives dividend based on patronage?

A

Preference shareholder

B

Co-operative society member

C

Cumulative preference shareholder

D

Debenture holder

E
Q19
If a customer opens a deposit account with a bank, he will
A
receive a crossed cheque book.
B
be given a tally.
C
be given a loan.
D
receive interest.
E
Q20

A chamber of commerce usually consist of

A

officials of the trade unions of commercial workers

B

the people engaged in one aspect of trading and manufacturing

C

all the workers in one branch of commerce.

D

the people who represent a cross-section of business interests in a town.

E
Q21

The takeover by government of Sanking Silah and Sons Ltd  is referred to as

A

privatization

B

indigenization

C

commercialization

D

nationalization

E
Q22
A shareholder who holds 100,000.00 shares of 50 butts each is given a dividend of 10 percent less 2 percent tax. What is his net return?
A
D10,000.00
B
D9,800.00
C
D5,000.00
D
D4,900.00
E
Q23
The staff responsible for the calculations of probability of losses in insurance is the
A
Actuary
B
Underwriter
C
Broker
D
Solicitor
E
Q24
Public enterprises are financed mainly by
A
the shareholders.
B
commercial banks.
C
government grants.
D
the world bank.
E
Q25
The various rights attached to different classes of shares are stated in the
A
articles of association.
B
memorandum of association.
C
balance sheet.
D
prospectus.
E
Q26
Which of the following gets extra dividend after its due fixed of dividend?
A
Preference shares.
B
Cumulative preference shares.
C
Ordinary shares.
D
Participating preference shares.
E
Q27
If the opening stock is Le200, cost of goods sold Le2,400 and closing stock Le 120, then the rate of turnover is
A
20 times
B
15 times
C
12 times
D
7.5 times.
E
Q28
The money used by Nije & Co. Ltd in running the day-to-day activities of the business is represented by
A
total assets less total liabilities.
B
total assets less current liabilities
C
current asses less stock
D
current assets less current liabilities.
E
Q29
A limited company has an authorised capital of 20,000,000 shares. If each share capital costs 50k and the company sold 12,000,000 shares. Its issued capital is
A
N16,000,000.
B
N10,000,000.
C
N6,000,000.
D
N4,000,000.
E
Q30
A document used to advertise shares for sale is
A
prospectus
B
annual report
C
articles of association
D
memorandum of association.
E
Q31
If a share is sold at a price below its first value, it is sold
A
above par
B
at a discount
C
at par
D
at premium
E
Q32
A limited company can raise long term capital through the
A
commodity market.
B
stock exchange market.
C
export market.
D
foreign exchange market.
E
Q33
Which of the following is not a reason for dishonouring a cheque?
A
Insufficient funds in drawer's account.
B
When the cheque is stale.
C
Amount in figure differs with amount in words.
D
Poor handwriting.
E
Q34
Which of the following is not a function of the Central Bank?
A
Banker to the government.
B
Banker's bank.
C
Issuance of currency notes.
D
Granting loans to the public.
E
Q35
Treasury bills are bought and sold in the
A
Capital market
B
Open market
C
Commodity market
D
Money market
E
Q36
Which of the following is a legal tender?
A
bank notes
B
bank drafts
C
central bank cheque
D
travellers' cheque
E
Q37
An open cheque is one
A
on which the amount is written only in figures.
B
which has no name.
C
which can be cashed over the counter.
D
which has no specific amount written on it.
E
Q38
The amount of D60,000 quoted represents
A
premium
B
sum insured
C
contribution
D
compensation
E
Q39
The current liability is
A
N1, 200
B
N3,000
C
N4,200
D
N7,200
E
Q40
Which of the following is not a duty of a credit union?
A
Helping members save
B
granting loans
C
Advising on the use of funds
D
Confirming members indebtedness.
E
Q41
An association formed to protect the interests of buyers of various commodities is known as
A
Chamber of Commerce
B
Employers Association
C
Consumers Association
D
Manufacturers Association
E
Q42
Penny Bank Plc is the
A
Drawee.
B
Payee.
C
Drawer.
D
Endorser.
E
Q43
Which of the following trends in retailing provides the convenience of shopping without cash?
A
Ports Authority.
B
Central Bank.
C
Customs and Excise Authority.
D
Export Promotion Council.
E
Q44
Which of the following trends in retailing provides the convenience of shopping without cash?
A
Automatic vending
B
Self-service
C
Credit card
D
Window display
E
Q45
Which of the following institutions does not belong to the capital market?
A
Commercial banks
B
Development banks
C
Mortgage banks
D
Insurance companies
E
Q46
The beneficiary of a cheque is called
A
Acceptor
B
Drawee
C
Drawer
D
Payee
E
Q47
Which of the following is not the duty of an agent to the principal?
A
Acting in good faith
B
Rendering accurate account
C
Disclosing all profits made
D
Making secret profit
E
Q48
The principle where many insurance companies join together to compensate one policy holder is called
A
Contribution
B
Subrogation
C
Compensation
D
Indemnity
E
Q49
Which of the following is the main purpose of a third party insurance? To
A
indemnity an injured outsider
B
indemnify the insured
C
protect the vehicle against theft
D
compensate the driver for injuries sustained
E
Q50
Commercial banks usually settle their indebtedness through the
A
money market.
B
clearing house.
C
discount house.
D
stock exchange.
E
Q51
The distribution of profits based upon the level of patronage in the business is a common feature of
A
partnership firms.
B
public limited companies.
C
co-operative societies.
D
private limited companies.
E
Q52
The fee which bank charges for services rendered to their current account customers is
A
commission on turnover.
B
bank rate.
C
minimum lending rate
D
interest.
E
Q53
Which of the following is an intangible assets to a firm
A
goodwill
B
reserve
C
skilled personnel
D
rights issue?
E
Q54
The net profit of a business is determined by
A
deducting cost of goods from sales.
B
deducting purchases from sales
C
adding commissions received to gross profit.
D
E
Q55
A bank's undertaking to pay an exporter on behalf of an importer is a
A
documentary credit
B
letter of credit
C
letter of hypothecation
D
bill of exchange
E
Q56
Time policy in insurance is associated with
A
motor vehicles.
B
ships at sea.
C
life endowment.
D
goods in transit.
E
Q57
The practice whereby a firm prepays the postage for the response of its customers is known as
A
express delivery
B
poste restante
C
recorded delivery service
D
business reply service
E
Q58
Which of the following is not a principle of insurance?
A
indemnity.
B
insurable risk.
C
subrogation.
D
insurable interest.
E
Q59
Which of the following abbreviations permits the seller to correct any error in any invoice?
A
E.O.R.
B
C.I.F.
C
E. & O.E.
D
I.O.U.
E
Q60
C & F as a price quotation in foreign trade means that the buyer
A
is responsible for clearing and forwarding the goods.
B
has to pay for cost and freight.
C
pays for both the freight and insurance
D
pays for insurance only.
E