(a) State five reasons that would make a bank dishonor a customer's cheque.
(b) State five reasons countries introduce restrictions in foreign trade.
(a) Here are five reasons that would make a bank dishonor a customer's cheque:
Insufficient funds: If the customer's account does not have enough funds to cover the amount of the cheque, the bank may dishonor the cheque.
Account closure: If the customer's account has been closed or frozen, the bank cannot honor the cheque.
Irregular signature: If the signature on the cheque does not match the signature the bank has on file, the bank may dishonor the cheque.
Stale-dated cheque: If the cheque is presented to the bank after a certain period (usually 6 months), the bank may dishonor it.
Post-dated cheque: If the cheque is presented to the bank before the date written on the cheque, the bank may dishonor it.
(b) Here are five reasons why countries introduce restrictions in foreign trade:
Protect domestic industries: Countries may introduce trade restrictions to protect their domestic industries from foreign competition. This could include tariffs on imported goods or quotas on the amount of goods that can be imported.
National security: Countries may restrict trade in certain goods or services that are considered vital to national security. This could include restrictions on the export of military equipment or technology.
Protect consumers: Countries may introduce trade restrictions to protect their citizens from unsafe or substandard goods. This could include restrictions on the import of goods that do not meet certain safety or quality standards.
Retaliation: Countries may introduce trade restrictions in response to trade restrictions imposed by other countries. This could include imposing tariffs on goods from countries that have imposed tariffs on their own goods.
Balance of payments: Countries may introduce trade restrictions to improve their balance of payments, which is the difference between the money a country earns from exports and the money it spends on imports. By reducing imports or increasing exports, countries can improve their balance of payments and reduce their reliance on foreign currency.
Answer Details
(a) Here are five reasons that would make a bank dishonor a customer's cheque:
Insufficient funds: If the customer's account does not have enough funds to cover the amount of the cheque, the bank may dishonor the cheque.
Account closure: If the customer's account has been closed or frozen, the bank cannot honor the cheque.
Irregular signature: If the signature on the cheque does not match the signature the bank has on file, the bank may dishonor the cheque.
Stale-dated cheque: If the cheque is presented to the bank after a certain period (usually 6 months), the bank may dishonor it.
Post-dated cheque: If the cheque is presented to the bank before the date written on the cheque, the bank may dishonor it.
(b) Here are five reasons why countries introduce restrictions in foreign trade:
Protect domestic industries: Countries may introduce trade restrictions to protect their domestic industries from foreign competition. This could include tariffs on imported goods or quotas on the amount of goods that can be imported.
National security: Countries may restrict trade in certain goods or services that are considered vital to national security. This could include restrictions on the export of military equipment or technology.
Protect consumers: Countries may introduce trade restrictions to protect their citizens from unsafe or substandard goods. This could include restrictions on the import of goods that do not meet certain safety or quality standards.
Retaliation: Countries may introduce trade restrictions in response to trade restrictions imposed by other countries. This could include imposing tariffs on goods from countries that have imposed tariffs on their own goods.
Balance of payments: Countries may introduce trade restrictions to improve their balance of payments, which is the difference between the money a country earns from exports and the money it spends on imports. By reducing imports or increasing exports, countries can improve their balance of payments and reduce their reliance on foreign currency.