Commerce Questions and Answers
Test and improve your knowledge of the fundamentals of buying and selling with these Commerce past questions and answers.
Test and improve your knowledge of the fundamentals of buying and selling with these Commerce past questions and answers.
When C.I.F is quoted on an invoice, it means that the price includes the
cost of goods only
cost of insurance only
cost of carriage only
cost, insurance and carriage
Correct answer is D
CIF means Cost, Insurance, and Freight. That is ,the seller is obligated but not restricted to : Taking care of export customs clearance formalities at origin
Currency notes
Cowries
Cheques
Bankdrafts
Correct answer is B
Cowries where used as a medium of exchange by traders during the barter system. The cowrie currency had enabled the economy to overcome the inherent problems of the barter exchange system.
Which of the following distinguishes home trade from foreign trade?
Payments are easily arranged
Taxies are levied
Goods have to be warehoused
Middlemen are not required
Correct answer is A
In a home or domestic trade, payment for goods and services are less cumbersome and easily arranged unlike foreign trade that is prone with the problem of different currencies and exchange rate
Banks settle their indebtedness in the
discount house
stock exchange market
commercial bank
clearing house
Correct answer is D
A clearing house is a bankers' establishment where cheques and bills from member banks are exchanged, so that only the balances need be paid in cash.
A cheque dated 15th March 2012, will become stale on
16th June 2012
16th July 2012
16th August 2012
16th September 2012
Correct answer is D
A cheque is valid for 6 months after it's issued. If it was issued on 15 march, it is valid till 16 September of the same year.