JAMB and WAEC Commerce questions: Money and banking

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

1. Question 1· Money and banking· WAEC

   A current account holder can withdraw money by using

   • Aa cheque
   • Ba share certificate
   • Can invoice
   • Da debit note

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   Explanation and discussion

2. Question 2· 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

3. Question 3· 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

4. Question 4· Money and banking· WAEC

   A savings account holder earns

   • Adividends
   • Binterest on deposits
   • Ccommission
   • Drent

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   Explanation and discussion

5. Question 5· Money and banking· WAEC

   Money is said to be a store of value because it

   • Ameasures prices
   • Bis accepted by everyone
   • Ccan be saved for future use
   • Dsettles debts

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   Explanation and discussion

6. Question 6· Money and banking· WAEC

   The person who writes and signs a cheque is the

   • Apayee
   • Bdrawee
   • Cdrawer
   • Dendorser

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   Explanation and discussion

7. Question 7· Money and banking· WAEC

   Which of these is NOT a function of money?

   • Afertilising the soil
   • Bmedium of exchange
   • Cstore of value
   • Dmeasure of value

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   Explanation and discussion

8. Question 8· 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

9. Question 9· Money and banking· WAEC

   The bank that issues currency in Nigeria is the

   • Aa microfinance bank
   • BFirst Bank
   • CBank of Industry
   • DCentral Bank of Nigeria

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   Explanation and discussion

10. Question 10· 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

11. Question 11· 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

12. Question 12· 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

13. Question 13· Money and banking· WAEC

    A bank draft is preferred to a personal cheque because it

    • Ais drawn by a bank and cannot easily bounce
    • Bneeds no signature
    • Chas no value
    • Dis paid in goods

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    Explanation and discussion

14. Question 14· Money and banking· WAEC

    A standing order instructs a bank to

    • Amake regular fixed payments for the customer
    • Bstop a cheque
    • Copen a new account
    • Dbuy shares

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    Explanation and discussion

15. Question 15· Money and banking· WAEC

    Agent banking points in rural areas help to

    • Aclose all banks
    • Bbring basic banking services closer to people without branches
    • Craise lending rates
    • Dprint currency

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    Explanation and discussion

16. Question 16· 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

17. Question 17· 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

18. Question 18· Money and banking· WAEC

    An overdraft allows a current account holder to

    • Asave money
    • Bwithdraw more than his balance up to an agreed limit
    • Cbuy shares
    • Davoid interest

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    Explanation and discussion

19. Question 19· 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

20. Question 20· Money and banking· WAEC

    On a cheque, the bank on which it is drawn is called the

    • Adrawee
    • Bdrawer
    • Cpayee
    • Dendorsee

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    Explanation and discussion