a) State five services a commercial bank renders to customers. b) List five duties of a customs authority.

Answer Details

(a) Five services a commercial bank renders to customers

1. Accepting deposits. It keeps customers' money safe in current, savings and fixed deposit accounts.
2. Granting loans and overdrafts. It lends money to customers to meet business and personal needs.
3. Providing means of payment. It offers cheques, standing orders, bank drafts and electronic transfers for settling debts.
4. Safe-keeping of valuables. It provides safe custody for documents, jewellery and other valuables.
5. Foreign exchange and money transfer. It buys and sells foreign currency and transfers money within and outside the country.

(Also acceptable: giving financial advice, acting as a referee, and issuing statements of account.)

(b) Five duties of a customs authority

1. Collection of import and export duties. It assesses and collects duties and taxes on goods entering and leaving the country.
2. Prevention of smuggling. It guards the borders and ports to stop the illegal movement of goods in and out of the country.
3. Inspection and examination of goods. It inspects imported and exported goods and their documents to ensure they comply with the law.
4. Enforcement of import and export prohibitions. It prevents the entry of banned or dangerous goods (such as hard drugs and contraband) and controls restricted exports.
5. Compilation of trade statistics. It keeps records of goods imported and exported, providing data for the country's trade statistics.

(Also acceptable: operating bonded warehouses and collecting excise duties.)