JAMB Commerce questions

307 questions with answers and explanations. Tap an option to check yourself.

1. Question 221· Insurance· JAMB

   Mr Bello insures goods worth ₦800,000 for only ₦400,000 and suffers a loss of ₦200,000. Under the average clause he receives

   • A₦400,000
   • B₦200,000
   • C₦100,000
   • D₦50,000

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   Explanation and discussion

2. Question 222· Insurance· JAMB

   Endowment assurance pays

   • Aonly for theft
   • Bnothing ever
   • Conly for fire
   • Da sum at the end of a fixed period or on earlier death

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   Explanation and discussion

3. Question 223· Insurance· JAMB

   In life assurance, the person who receives the sum assured on the death of the insured is the

   • Ainsurer
   • Bbeneficiary
   • Cbroker
   • Dassessor

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   Explanation and discussion

4. Question 224· Money and banking· JAMB

   The cashless policy of the CBN aims to

   • Astop banking
   • Breduce the use of physical cash in transactions
   • Cprint more money
   • Dclose ATMs

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   Explanation and discussion

5. Question 225· Money and banking· JAMB

   A cheque that is payable to whoever presents it at the bank is

   • Aan order cheque
   • Ba bearer cheque
   • Ca crossed cheque
   • Da stale cheque

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   Explanation and discussion

6. Question 226· Money and banking· JAMB

   A cheque presented for payment more than six months after the date written on it is described as

   • Apost-dated
   • Bstale
   • Cdishonoured
   • Dendorsed

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   Explanation and discussion

7. Question 227· Money and banking· JAMB

   Which function of money allows it to be used to settle debts in the future?

   • AMedium of exchange
   • BUnit of account
   • CStandard of deferred payment
   • DStore of value

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   Explanation and discussion

8. Question 228· Money and banking· JAMB

   Which of these is a quality of good money?

   • APerishability
   • BPortability
   • CBulkiness
   • DEasy forgery

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   Explanation and discussion

9. Question 229· Money and banking· JAMB

   Which of these is a function of the Central Bank of Nigeria?

   • AAccepting deposits from the public
   • BLending to individual traders
   • COpening savings accounts for students
   • DIssuing the national currency

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   Explanation and discussion

10. Question 230· Money and banking· JAMB

    A cheque is described as stale when it

    • Ais post-dated
    • Bis crossed
    • Cis signed
    • Dhas not been presented within the allowed period (usually six months)

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    Explanation and discussion

11. Question 231· Money and banking· JAMB

    A standing order is an instruction to a bank to

    • Astop a cheque
    • Bmake regular fixed payments
    • Copen an account
    • Dclose an account

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    Explanation and discussion

12. Question 232· Money and banking· JAMB

    Which bank account is designed for traders who issue many cheques?

    • Asavings account
    • Bcurrent account
    • Cfixed deposit account
    • Ddomiciliary account

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    Explanation and discussion

13. Question 233· Money and banking· JAMB

    A bank reconciliation statement is useful to a business because it

    • Araises new capital
    • Bexplains the differences between the cash book and the bank statement
    • Cpays taxes
    • Dadvertises the firm

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    Explanation and discussion

14. Question 234· Money and banking· JAMB

    A dishonoured cheque is one that

    • Athe bank refuses to pay
    • Bhas been crossed
    • Chas been endorsed
    • Dis post-dated by a day

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    Explanation and discussion

15. Question 235· Money and banking· JAMB

    The Nigeria Deposit Insurance Corporation protects

    • Adepositors if a bank fails
    • Bborrowers
    • Cbank shareholders
    • Dthe Central Bank

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    Explanation and discussion

16. Question 236· Money and banking· JAMB

    Bank overdraft interest is charged on

    • Adeposits
    • Bthe full limit always
    • Cthe amount actually overdrawn
    • Dshares

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    Explanation and discussion

17. Question 237· Money and banking· JAMB

    A cheque on which the amount in words differs from the amount in figures will usually be

    • Apaid according to the figures
    • Breturned unpaid to the drawer
    • Cpaid according to the words automatically
    • Dpaid twice

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    Explanation and discussion

18. Question 238· Money and banking· JAMB

    A post-dated cheque is one

    • Acrossed twice
    • Bwith no date
    • Calready cashed
    • Ddated for a future day

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    Explanation and discussion

19. Question 239· Money and banking· JAMB

    Endorsing a cheque means

    • Acrossing it
    • Bsigning on its back to transfer it to another person
    • Cstopping it
    • Ddating it

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    Explanation and discussion

20. Question 240· Money and banking· JAMB

    A bank statement is

    • Aa loan agreement
    • Ba cheque book
    • Ca record of transactions on a customer's account
    • Da tax receipt

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    Explanation and discussion