WAEC Commerce Past Questions & Answers - Page 37

181.

Before the advent of legal tender and credit instrument, which of the following was used as a medium of exchanged?

A.

Currency notes

B.

Cowries

C.

Cheques

D.

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.

182.

Which of the following distinguishes home trade from foreign trade?

A.

Payments are easily arranged

B.

Taxies are levied

C.

Goods have to be warehoused

D.

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

183.

Banks settle their indebtedness in the

A.

discount house

B.

stock exchange market

C.

commercial bank

D.

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.

184.

A cheque dated 15th March 2012, will become stale on

A.

16th June 2012

B.

16th July 2012

C.

16th August 2012

D.

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.

185.

The par value of a share is also known as its

A.

premium price

B.

market price

C.

discount price

D.

nominal price

Correct answer is D

Nominal value of a security, often referred to as face or par value, is its redemption price and is normally stated on the front of that security.