WAEC Commerce Past Questions & Answers - Page 28

136.

The assets of a business that is available for cash or near cash is called

A.

equity

B.

capital employed

C.

received capital

D.

liquid capital

Correct answer is D

Liquid capital is defined as cash or items which are readily converted to cash in a short time

137.

A collective bundle of shares is called?

A.

debenture

B.

stock

C.

bond

D.

share

Correct answer is B

Stock is the capital raised by a company or corporation through the issue and subscription of shares. Summation of shares is referred to as stock

138.

A written instruction by a current account holder to his bank to debit his account at regular intervals with a specified amount for a given period is known as

A.

standing order

B.

money order

C.

bank draft

D.

overdraft

Correct answer is A

standing order; an instruction to a bank by an account holder to make regular fixed payments to a particular person or organization.

139.

One of the principles of insurance is

A.

consequential loss

B.

fidelity guarantee

C.

proximate cause

D.

surrender value

Correct answer is C

Proximate cause is an insurance principle that refers to the first event, or first peril, in a series of events that cause damage in an insurance claim.

140.

Which of the following is not an economic grouping

A.

Lake Chad Basin Commission

B.

Economic Community of West African States

C.

European Union

D.

International Monetary Fund

Correct answer is A

Economic grouping is an organization that encourages economic cooperation among its member countries. The The Lake Chad Basin Commission is not an economic grouping. 

The Lake Chad Basin Commission is an intergovernmental organization that oversees water and other natural resource usage in the basin.