WAEC Past Questions and Answers - Page 30

146.

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

147.

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.

148.

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. 

149.

A licensed person who is authorized to sell to the highest bidder is

A.

principal

B.

factor

C.

broker

D.

auctioneer

Correct answer is D

An auctioneer is a person who manages an auction, or a public sale at which people can bid on items. Goods are sold to the highest bidder in an auction.

150.

The collection of tariffs on imported goods is the function of

A.

Ports Authority

B.

Customs and Excise Authority

C.

Clearing and Forwarding Agents

D.

Export Promotion Council

Correct answer is B

Functions of customs and excise authorities

  • Collect and revenue for the government by charging customs and excise duties.
  • Collect, keep and analyse records of imported and exported goods and services.
  • Control bonded warehouses to ensure that duty is collected on imported dutiable goods before releasing them