JAMB Commerce questions: Money and banking

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

1. Question 1· 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

2. Question 2· 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

3. Question 3· 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

4. Question 4· 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

5. Question 5· 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

6. Question 6· 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

7. Question 7· 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

8. Question 8· 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

9. Question 9· 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

10. Question 10· 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

11. Question 11· 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

12. Question 12· 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

13. Question 13· 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

14. Question 14· 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

15. Question 15· 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

16. Question 16· 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

17. Question 17· 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

18. Question 18· Money and banking· JAMB

    Microfinance banks mainly serve

    • Alarge corporations only
    • Bsmall businesses and low-income earners
    • Cforeign governments
    • Dthe Central Bank

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    Explanation and discussion

19. Question 19· Money and banking· JAMB

    A cheque that can only be paid into a bank account and not cashed over the counter is

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

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    Explanation and discussion

20. Question 20· Money and banking· JAMB

    An arrangement that lets a current account holder withdraw more than the balance, up to an agreed limit, is

    • Aa loan
    • Ba direct debit
    • Ca standing order
    • Dan overdraft

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    Explanation and discussion