The amount a current account holder is allowed to withdraw in excess of the balance in his account is _______
- A. standing order
- B. overdraft
- C. interest
- D. credit transfer
The purpose for which the Central Bank sells securities is to
- A. reduce the interest rate
- B. reduce cash in the economy
- C. increase cash in the economy
- D. incrcase the interest rate
Which of the following means of payment requires acceptance by the debtor to make it valuable?
- A. Bearer's cheque
- B. Bill of exchange
- C. Postal order
- D. Promissory note
One of the functions of the ports authority is
- A. checking the activities of smugglers.
- B. collecting import duties
- C. enforcing law and order in harbours
- D. providing warehousing services.
The practice by which insurance companies share risks with other insurance companies is
- A. contribution
- B. re-insurance
- C. insurance
- D. underwriting
Speed is an important factor to be considered for the choice of means of transport where goods are
- A. perishable
- B. interior
- C. fragile
- D. bulky
The right of a seller to make corrections on invoices is expressed by the term
- A. errors and omissions excepted
- B. errors omissions excluded
- C. errors and omissions exempted
- D. errors and omissions expected
The main function of a bureau-de-change is
- A. buying and selling foreign currency
- B. buying and selling securities information
- C. providing trade information
- D. selling goods and services
The expected response from the recipient of a quotation is to send
- A. an advice note
- B. a cheque for payment
- C. an invoice
- D. an order
Use the information below to answer questions 20 and 21.
| Opening stock | 4000 |
| Closing stock | 12000 |
| Purchases | 17000 |
The cost of goods sold is
- A. N4,000
- B. N9,000
- C. N16,000
- D. N21,000
Use the information below to answer questions 20 and 21.
| Opening stock | 4000 |
| Closing stock | 12000 |
| Purchases | 17000 |
What is the average stock?
- A. NI0,500
- B. N8.500
- C. N8,000
- D. 6000
An error on an invoice may be rectified by issuing
- A. an advice note
- B. a consignment note
- C. a credit note
- D. a delivery note
The collection of import duty is a function of the
- A. ports authority
- B. marketing boards
- C. clearing and forwarding agents
- D. customs and excise authority
A country’s balance of trade of -$20 million shows that its
- A. import volume is greater than export
- B. import and export volumes are equal
- C. export volume is greater than imports
- D. exports are mainly primary products
Which of the following is not a condition for dissolution of a partnership?
- A. Continuous disagreement among partners
- B. Expiration of a business year
- C. Mutual consent of the patners
- D. Termination of the venture
A foreign order which instructs an agent to buy certain goods from a particular supplier is
- A. closed indent
- B. open indent
- C. letter of credit
- D. letter of enquiry
The practice of selling goods to a foreign country at lower prices than obtainable in the exporting country is
- A. speculation
- B. skimming
- C. hedging
- D. dumping
One of the functions of a trade association is to
- A. provide infrastructure for members
- B. provide employment for members
- C. promote members' welfare
- D. pay members' salaries
An organization of producers of similar produces, which controls output with the intention to fix price is a
- A. trust
- B. syndicate
- C. consortium
- D. cartel
A number of shops under one roof is a
- A. chain store
- B. department store
- C. discount store
- D. unit store
One of the disadvantages of selling on credit is
- A. reduction in turnover
- B. reduction in profit
- C. increase in liquidity
- D. bad debts