JAMB Past Questions and Answers - Page 8

36.

Bank giro is a system where?

A.

commercial banks can give loan to all customers.

B.

a central bank opens accounts for commercial banks

C.

a customer uses a cheque to pay several bills.

D.

a customer closes his account by writing a cheque

Correct answer is C

Bank giro credits (BGCs) are used by customers to pay cash or cheques into a bank account. They are commonly found in the form of tear-off strips at the bottom of utility, telephone and other regular bills.

37.

A person who undertakes any risk in insurance business is known as ? 

A.

a broker

B.

an underwriter

C.

an insurer

D.

an actuary

Correct answer is B

An underwriter is any party that evaluates and assumes another party's risk for a fee, such as a commission, premium, spread or interest. Underwriters operate in many aspects of the financial world, including the mortgage industry, insurance industry, equity markets, and common types of debt securities.

38.

Excise duties are paid on goods that are?

A.

imported into the country

B.

manufactured within the country

C.

exported to other countries

D.

kept in bonded warehouse

Correct answer is B

Excises are often associated with customs duties (which are levied on pre-existing goods when they cross a designated border in a specific direction); customs duties are levied on goods which come into existence – as taxable items – at the border, while excise is levied on goods which came into existence inland . That is to say, An excise duty is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country).

39.

The business organisation in which shareholders have equal votes is?

A.

sole proprietorship

B.

partnership

C.

cooperative

D.

limited liability company

Correct answer is C

The business of co-operative society is generally managed by a committee elected by the members at annual general meeting. Since most of the co-operatives operate on a local scale, the meetings of the members are well attended, and this puts the managing committee under a lot of close supervision. ‘One man one vote’ is the basic element of co-operative democracy.

But in a co­operative, one member may have 10,000 shares and the other only 1 share, but each would command one vote only and no proxies would be permitted.

40.

Erroneous real arrangement of financial figure such as writing N624 as N264 is called?

A.

ommission

B.

commission

C.

transposition

D.

principle

Correct answer is C

A transposition error is a simple error of data entry that occurs when two digits that are either individual or part of a larger sequence of numbers are accidentally reversed (transposed) when posting a transaction. Although this type of error is often small and unintentional, it can result in huge financial losses in some instances. A transposition error is simply substituting two sequential digits. For example, the number 78 for 87 or 1346 for 1436.