WAEC Past Questions and Answers - Page 49

241.

What is the name of a service where a bank makes regular payment on behalf of its customers

A.

Direct debit

B.

Credit transfer

C.

Standing order

D.

Bank draft

Correct answer is C

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

242.

When the buyer of an existing share is to receive the pending dividend, the price is

A.

cum div

B.

ex-div

C.

at par

D.

at a discount

Correct answer is A

Cum divl; (of share purchases) with a dividend about to be paid.

243.

A cheque issued in January 1997 which the holder failed to present for payment until September 1997 is called a

A.

traveller's cheque

B.

post-dated cheque

C.

stale cheque

D.

crossed cheque

Correct answer is C

stale cheque is a cheque that was written too long ago and that a bank may refuse to pay when someone tries to get the stated amount:

244.

Which of the following is not true of the stock exchange?

A.

it is a commodity market

B.

it provides market for trading on shares

C.

Government and companies raise fund through it

D.

it provides professional advice on investment

Correct answer is A

 A commodity market is a physical or virtual marketplace for buying, selling, and trading raw or primary products.  Stock Exchange is not a commodity market

245.

Which of the following is a safest way of sending important documents through the post

A.

Registered mail

B.

Parcel post

C.

Letter post

D.

Express mail

Correct answer is A

Registered mail is a postal procedure with special precautions for safety and for compensation in case of loss.