Loading....
|
Press & Hold to Drag Around |
|||
|
Click Here to Close |
|||
Question 1 Report
The main objective of nationalization of industries is to
Answer Details
Nationalization of industries is primarily aimed at bringing an industry under state ownership and control. This means that the government takes ownership of certain industries or sectors, rather than leaving them in private or foreign hands.
There are several reasons a government might choose to nationalize an industry:
1. Ensure National Control: Nationalization is used to ensure that important industries, such as natural resources or critical infrastructure, remain under national control and are protected from foreign influence or exploitation.
2. Social Welfare: The state can prioritize social welfare over profit by ensuring that essential goods and services (like electricity, water, and healthcare) are accessible and affordable to all citizens.
3. Economic Stability: By owning and controlling key industries, the government can directly influence economic activities, stabilize markets, and support strategic economic goals. This can include preventing firms from liquidation in cases where those firms are crucial for national economic stability.
4. Redistribution of Wealth: Nationalization can be a tool for redistributing wealth, particularly if industries are previously owned by a small, wealthy segment of the population or foreign entities.
5. Promote Employment: The government may aim to maintain or increase employment opportunities in crucial industries by keeping them operational and under state management.
Overall, while making profits for the government can be a benefit of nationalization, the primary objective is often that of exercising control over key industries for the aforementioned strategic and social reasons.
Question 2 Report
Answer Details
The relationship between a country's visible imports and exports in a trading year is known as the balance of trade.
To understand this concept, think of it as a way to measure how much a country is buying from other countries (imports) compared to how much it is selling to other countries (exports). When we talk about "visible" imports and exports, we refer to tangible goods like cars, food products, electronics, etc., that you can see, touch, and feel.
The balance of trade is essentially the difference in value between a country's visible exports and visible imports. If a country exports more than it imports, it has a trade surplus. Conversely, if it imports more than it exports, it has a trade deficit.
This concept is crucial because it gives insights into a country's economic health. A trade surplus might indicate a strong economy, whereas a trade deficit might suggest dependency on other nations for goods.
In summary, the balance of trade helps us understand the economic relationship between a country and its trading partners by showing whether the country has a surplus or deficit in its visible goods trade. Other terms like counter trade, international trade, and balance of payment have different meanings in economics and should not be confused with the balance of trade.
Question 3 Report
All the following are principles of insurance EXCEPT
Answer Details
In insurance, there are several fundamental principles that ensure the contractual agreement between the insurer and the insured is fair and effective. Among these principles, three are well-known:
Insurable Interest: This principle states that the insured must have a financial stake in the object or life insured. The policyholder should suffer a financial loss if the insured event occurs. This ensures that insurance is not a mere gambling proposition.
Utmost Good Faith (Uberrimae Fidei): Both parties involved in an insurance contract are required to disclose all relevant information truthfully. The insured must reveal all material facts, and the insurer should provide honest terms and conditions.
Subrogation: After compensating the insured for a loss, the insurer may step into the shoes of the insured to seek recovery from a third party responsible for the loss. This principle prevents the insured from profiting more than once for the same loss.
On the other hand, the term "Particular Average" is not one of the fundamental principles of insurance. Instead, it is a maritime insurance term used to describe partial loss or damage to a ship or its cargo that is not shared by all parties but borne only by the individual whose cargo was damaged. Therefore, among the options provided, "particular average" is the exception as it is not a principle of insurance.
Question 4 Report
Which of the following CANNOT be sold through a vending machine?
Answer Details
When considering what items can be sold through vending machines, **the main factor to consider** is whether the item can fit within the confines of the machine and be dispensed in a simple manner without needing additional services. Let's analyze the options:
In conclusion, considering the typical size and function of a regular vending machine, **shoes cannot be sold** effectively through standard vending machines, while snacks, tickets, and tea can be dispensed without significant issues.
Question 5 Report
A tax paid on goods manufactured and consumed in your country is called
Answer Details
The type of tax that is paid on goods that are manufactured and consumed within a country is called excise duty.
Excise duty is essentially a tax on the manufacturers of certain goods and products within the country. It is typically levied on goods that are considered either luxurious or harmful if over-consumed, such as cigarettes, alcohol, or fuel. The government imposes this tax to either limit the consumption of these goods, to increase government revenue, or both.
This tax is different from custom duty or income tax. Custom duty is charged on goods that are imported into a country, whereas income tax is charged on individuals' or entities' earnings.
Question 6 Report
Fishing is an example of
Answer Details
Fishing is an example of the extractive industry. This industry involves activities that extract natural resources from the earth or water bodies. In the case of fishing, it means obtaining fish and other sea creatures from oceans, rivers, and lakes. The extractive industry is characterized by the removal of raw materials from their natural environment without any transformation into other forms before they are further processed, utilized, or consumed.
For example, when fishermen catch fish, they are directly taking resources from nature without altering them. These resources can either be directly consumed or processed into different products, depending on the demand and usage.
Question 7 Report
Answer Details
The term "caveat emptor" is a Latin phrase which translates to "let the buyer beware." This principle is used primarily in property transactions and essentially means that the buyer assumes the risk of the quality and condition of the item purchased, unless it is covered by a warranty. In simple terms, it emphasizes the responsibility of the purchaser to examine and evaluate what they are buying. It is a warning that the buyer should be cautious and perform any necessary due diligence prior to completing a transaction. Sellers are not obligated to volunteer details about the products or properties they sell unless asked by the buyer or required by law.
Question 8 Report
Which type of advertisement induces consumer to purchase the goods he does not need?
Answer Details
Persuasive advertisement is the type that induces consumers to purchase goods they do not need. This form of advertising aims to create a desire in the consumer by appealing to their emotions, beliefs, or aspirations. Instead of providing just information about the product, it focuses on convincing the consumer that they will gain certain benefits or status by owning or using the product. This can be achieved through various techniques such as celebrity endorsements, fear of missing out (FOMO), appealing to trends, or showcasing how the product improves one's lifestyle or social standing. By doing this, consumers are often led to believe that they need the product to achieve happiness, success, or social acceptance, thereby encouraging them to make purchases that were originally unnecessary to them.
Question 9 Report
One of the easiest means of transporting petroleum product is by
Answer Details
Pipelines are one of the easiest and most efficient means of transporting petroleum products. Here is why:
1. Continuous Flow: Pipelines allow for a constant and uninterrupted flow of petroleum products from one location to another. This continuity ensures a steady supply and minimizes delays that can occur with other modes of transportation.
2. Cost-Efficient: Over long distances, pipelines are generally more cost-effective than other transportation methods. This is due to lower operating costs and the ability to transport large volumes of product with minimal energy input once the infrastructure is in place.
3. Safety: Pipelines are considered to be a safer option for transporting petroleum products compared to road or rail. They reduce the likelihood of accidents or spills that can occur with vehicles or trains, making them a preferred choice for minimizing environmental impact.
4. Reliability: Unlike air or road transport, pipelines are less affected by weather conditions, traffic, or other disruptions, which makes them a reliable choice for consistent delivery schedules.
5. Low Environmental Impact: While the construction of pipelines can initially impact the environment, their operation creates fewer emissions compared to repeated vehicle trips. This makes pipelines a more environmentally friendly option in the long term.
Overall, due to these advantages, pipelines are often the preferred method for transporting large volumes of petroleum products over long distances in a safe, cost-effective, and reliable manner.
Question 10 Report
The body charged with the responsibility monitoring the quality of goods supplied is the
Answer Details
The body responsible for monitoring the quality of goods supplied is the Nigerian Standards Organization. This organization, also known as the Standards Organization of Nigeria (SON), is charged with setting and ensuring compliance with product quality standards for goods in the country. Their primary role is to develop and implement standards that help safeguard both consumers and the environment by ensuring that products are safe, reliable, and of good quality.
The SON conducts inspections, tests, and other evaluative measures on products to ascertain their quality. Additionally, they educate manufacturers and stakeholders about necessary standards and oversee adherence to these standards in production and distribution processes. Through these activities, the organization aims to protect consumers from harm, fraudulent practices, and low-quality products, while also enhancing the competitiveness of Nigerian goods both locally and internationally.
Question 11 Report
Departmental store, supermarket and chain store are examples of
Answer Details
Departmental stores, supermarkets, and chain stores are examples of large scale retailers. This is because they operate on a much larger scale compared to typical small shops. Here’s why each of these falls under this category:
In summary, all these stores are structured to cater to a vast number of customers with extensive offerings, significant inventory, and often require substantial investment and infrastructure, which are defining traits of large scale retailers.
Question 12 Report
Shares are said to be sold at a discount when they are sold
Answer Details
Shares are said to be sold at a discount when they are sold below par value. In finance, the par value of a share is its nominal or face value as stated on the certificate or in the company's financial statements. The par value is typically set when the company is formed and does not usually change.
Selling shares below this par value means that the company is offering them at a lower price than their nominal value. This can occur as a strategy to attract investors when market conditions are tough, or if the company needs to raise capital quickly.
For example: If the par value of a share is $10 and it is sold for $8, it is being sold at a discount of $2 from its par value.
It's important to note that selling shares below par can have implications for a company's perceived financial health and can affect investor confidence. Therefore, companies may do this strategically and with consideration of market reactions.
Question 13 Report
Which of the following services is NOT rendered by NITEL?
Answer Details
The service that is NOT rendered by NITEL is Recorded Delivery.
Explanation:
NITEL, which stands for Nigerian Telecommunications Limited, was mainly involved in providing telecommunications services in Nigeria. Its core services included:
On the other hand, Recorded Delivery is a service typically offered by postal services, not telecommunication companies. It involves sending mail with proof of mailing and, sometimes, delivery confirmation. This ensures that mailed items are tracked and delivered securely.
Question 14 Report
The rules and regulations guiding the conduct of business transactions are known as law
Answer Details
In the context of **business transactions**, the rules and regulations that govern them are primarily known as **commercial law**. This is because **commercial law deals specifically with the legal aspects of business and trade**, and it includes a variety of laws that regulate how businesses operate, how they interact with other businesses, and how consumers are protected in these transactions.
Other laws mentioned, such as:
Therefore, when discussing the guidelines and frameworks for business transactions specifically, **commercial law** is the umbrella under which these rules and regulations fall.
Question 15 Report
Tariff can be defined as a compulsory levy on
Answer Details
A tariff is a compulsory levy imposed by a government on imported goods only. This means that when products are brought into a country from abroad, a tax or duty is charged by the government on these goods. Tariffs are typically used to protect domestic industries from foreign competition by making imported goods more expensive, encouraging consumers to buy locally produced items. They can also be a source of revenue for the government. By increasing the cost of imports, tariffs influence the prices and choices available to consumers, often making domestic goods more appealing. In summary, tariffs are specifically associated with imports, not exports, foreign exchange earnings, or foreigners working in a particular country.
Question 16 Report
Which of the following does a seller send in reply to a letter of inquiry?
Answer Details
When a potential buyer sends a seller a **letter of inquiry**, they are typically asking for information regarding the availability, price, and terms of products or services. In reply to this inquiry, a seller typically sends a **quotation**.
Here is why a **quotation** is the appropriate response:
In conclusion, a seller sends a quotation in response to a letter of inquiry because it addresses the buyer's questions about pricing and other terms related to potential products or services they might purchase.
Question 17 Report
Which of these is NOT a governments legislation to protect the consumer?
Answer Details
The correct option that is NOT a government legislation to protect the consumer is Privatization and Commercialization.
Let me explain this in a simple way:
However:
Therefore, while the first three directly aim to protect consumers, Privatization and Commercialization are more about economic management and do not serve as consumer protection legislation.
Question 18 Report
Answer Details
In the context of business-related law, let's examine each of the given areas to identify the one that is generally **not directly linked** to business:
From this analysis, it is clear that the concept of **possession**, although important in its own right, is generally **not as directly related to business** as the other areas mentioned, which are closely involved in business operations and transactions.
Question 19 Report
Which of the following is NOT an aim of advertising?
Answer Details
Advertising primarily focuses on promoting products or services to potential customers. Here are typical aims of advertising:
On the other hand, reducing the cost of the goods produced is NOT an aim of advertising. This is more associated with production processes and cost management strategies within a company. Advertising itself often incurs costs and does not directly reduce production expenses but is intended to increase sales and generate revenue, which can offset costs over time.
Question 20 Report
The breaking down of work into different processes is known as
Answer Details
The breaking down of work into different processes is known as division of labour. This concept involves splitting a job into a series of smaller tasks, with each task assigned to a different worker or group of workers. By doing this, each worker can focus on what they do best, increasing their efficiency and productivity in that particular task.
Here's a simple way to understand it: Imagine a bakery that makes loaves of bread. Instead of one person doing everything from mixing the ingredients, kneading the dough, baking, and packaging, the work is divided among several people. One person may be responsible for mixing the ingredients, while another focuses on kneading the dough, yet another bakes it, and a final person packages the bread. This makes the entire process faster and more efficient, as each worker becomes proficient in their specific task.
The division of labour allows for a more effective use of skills and resources, leading to higher productivity and often resulting in goods being produced more quickly and for less cost.
Question 21 Report
Which of the following is NOT part of Pre-Sales Service/ice?
Answer Details
Pre-sales services are the activities and support provided to potential buyers before the actual sale takes place. These services aim to assist customers in making informed purchasing decisions and to facilitate a smooth sales process. They typically include activities such as providing information about the products, answering inquiries, and assisting with product selection. However, granting credit or hire purchase sales facilities is not typically considered a pre-sales service.
Question 22 Report
An allowance made to a customer for prompt payment is known as
Answer Details
An allowance given to a customer for making prompt payment is called a cash discount. This is a reduction in the amount due to encourage the customer to pay within a shorter period. Essentially, it serves as an incentive for early payment, improving the cash flow for the seller and rewarding the buyer for settling their debts quickly.
Question 23 Report
An instruction to an agent abroad restricting him to buy from a named manufacturer is known as
Answer Details
The instruction given to an agent abroad restricting him to buy from a specific or named manufacturer is known as a closed indent.
Let me explain it in a straightforward way:
1. **Indent:** This is a purchase order sent by a buyer to an agent or supplier to buy goods on their behalf. It contains details about the product, quantity, and specifications.
2. **Closed Indent:** This type of indent indicates that the buyer has decided to purchase products from a particular, specified manufacturer or supplier. The agent must comply with this restriction while procuring the goods. The buyer has already made a choice, and the agent is simply carrying out their instructions.
In contrast, an **open indent** allows the agent to choose the manufacturer or supplier from whom to buy the goods, as long as the buyer’s requirements are met. So, the key difference is the level of freedom or restriction given to the agent in selecting the supplier.
Question 24 Report
The policy designed to accelerate the greater participation of Nigerians in the ownership and management of business enterprises in Nigeria is called
Answer Details
The policy designed to accelerate the greater participation of Nigerians in the ownership and management of business enterprises in Nigeria is called Indigenization.
Indigenization refers to efforts and policies implemented to transfer ownership and control of enterprises and resources from foreign and non-national entities to the nationals of a country. The aim is to increase the involvement of local citizens in the economy of their country, ensuring that they have a substantial stake in the economic activities.
In the context of Nigeria, the indigenization policy was meant to empower Nigerians by enabling them to own and manage businesses. This was achieved by legally requiring certain levels of Nigerian ownership and participation in various sectors of the economy. Such policies were put in place to reduce foreign control and ensure that the wealth generated within the country contributed to national development and was accessible to the citizens of Nigeria.
Question 25 Report
Obi received a cheque for #1000 from Mr. Ade and this cheque was stolen. He must
Answer Details
If Obi received a cheque from Mr. Ade and it was stolen, the appropriate course of action would be to inform Mr. Ade to tell his bank to stop payment on the cheque. Here’s why:
1. Informing Mr. Ade: Obi should immediately inform Mr. Ade because the cheque belongs to Mr. Ade and he is the one who can authorize the bank to stop payment. The cheque is drawn from Mr. Ade's account, so his bank is the one that needs to be notified to prevent the cheque from being cashed by an unauthorized party.
2. Stopping Payment: By stopping the payment, Mr. Ade ensures that if someone tries to cash or deposit the stolen cheque, the bank will reject it, thus preventing any unauthorized withdrawal of funds from Mr. Ade's account.
3. Legality and Authorization: Obi cannot directly stop payment with Mr. Ade's bank because he is not the account holder, and the bank will not act on Obi’s request without Mr. Ade's authorization.
4. Request for Replacement: Once Mr. Ade has successfully stopped payment on the stolen cheque, Obi can politely request Mr. Ade for a replacement cheque, assuming the situation is amicable and Mr. Ade is willing to issue another cheque.
In summary, the first step is to inform Mr. Ade so he can take the necessary action with his bank.
Question 26 Report
The following are functions of marketing EXCEPT
Answer Details
Marketing is a broad concept that involves various activities to promote and sell products or services. Let's briefly explore each option in relation to marketing:
Packaging: This is a marketing function that involves designing and producing the containers or wrappers for a product. The purpose of packaging is to protect the product, facilitate its storage and transport, and make it appealing to consumers.
Distribution: This function refers to the process of getting the product from the manufacturer to the consumer. It involves activities like transportation, warehousing, and supply chain management, ensuring that the product is available to customers at the right time and place.
Advertising: Advertising is a marketing function that focuses on promoting a product or service through various media channels. The aim is to inform potential customers about a product, persuade them to purchase, and build brand awareness.
Insurance: This is not a marketing function. Insurance is a financial service that provides risk management and protection against potential financial losses. While businesses may use insurance to protect their assets, it is not a function aimed at promoting and selling products or services like the other activities mentioned.
In summary, insurance is not a function of marketing. It stands apart as a service focused on risk management rather than the promotion and sale of products or services.
Question 27 Report
Which of the following is NOT part of the marketing mix?
Answer Details
The marketing mix is commonly referred to as the "4 Ps", which are key elements involved in executing a marketing strategy effectively. These elements are:
Unlike the "4 Ps," personnel is not traditionally considered a part of the marketing mix. While having skilled and well-trained staff is crucial for customer service and operations, it is not one of the main components in the traditional marketing mix. Thus, among the options provided, personnel is NOT part of the marketing mix.
Question 28 Report
The document which gives complete information about the goods sold is the
Answer Details
The document that provides complete information about the goods sold is the invoice.
An invoice is a detailed statement provided by the seller to the buyer containing important information regarding the sale of goods. Here’s why it is deemed so comprehensive:
In contrast, the order form is a document generated by the buyer to request goods but doesn't contain the details of the actual sale. A delivery note accompanies goods to confirm delivery but lacks pricing and terms. Lastly, a bill of exchange is a financial document used for payment agreements, not for detailing goods sold.
Therefore, the invoice is the key document providing complete information about the goods sold.
Question 29 Report
The documents sent by the suppliers of good to a prospective buyer, informing him of what to pay if he buys the good is
Answer Details
The document sent by suppliers of goods to a prospective buyer, informing him of what to pay if he buys the goods is called an invoice. An invoice is a commercial document that itemizes all the products or services provided by the seller, as well as the prices. It typically includes important details such as the list of goods, quantities, agreed-upon prices, any discounts or taxes, and the total cost that the buyer needs to pay.
Invoices serve multiple purposes: they act as a request for payment, provide a clear record of a sale, and can be used for accounting and taxation purposes. By receiving an invoice, the prospective buyer is informed of the amount they need to pay if they decide to purchase the goods.
Question 30 Report
Which of the following types of insurance is usually excluded from the principle of indemnity?
Answer Details
The principle of indemnity in insurance states that an insured should not profit from a loss but rather be restored to their financial position prior to the loss. This principle is applied to prevent the insured from benefiting financially from an insurance claim.
Among the options provided, Life Insurance is usually excluded from the principle of indemnity. In the case of life insurance, it is not possible to quantify the loss of life in monetary terms and therefore indemnification in its traditional sense does not apply. Instead, life insurance works on a principle of paying out a specified sum when the insured event (death or specified incident) happens.
Other types of insurance like Fire, Fidelity Guarantee, and Marine are indemnity-based, meaning the payout aims to cover the actual financial loss. For example, if a fire damages property, the insurance payout is based on the value of the property destroyed. Similarly, fidelity guarantee insurance covers loss due to employee dishonesty, and marine insurance compensates for damage or loss of goods during transit. Therefore, these fall under the principle of indemnity.
In summary, life insurance is excluded from the principle of indemnity because it deals with the incalculable loss of a life by providing a predetermined benefit rather than a directly quantifiable financial covering of loss.
Question 31 Report
Transfer of ownership of goods sold under Hire Purchase System takes place when
Answer Details
Under the Hire Purchase System, the transfer of ownership of goods occurs when the buyer completes all the terms of the agreement. Specifically, this means that the ownership is transferred only when the final instalment is paid. Until the final payment is made, the ownership of the goods remains with the seller or the finance company facilitating the hire purchase. This arrangement allows the buyer to use the goods while making payments in instalments, but the buyer does not become the legal owner until they fulfill the entire payment commitment. Therefore, **the final payment is crucial** for the change of ownership, ensuring that all obligations under the agreement are satisfied.
Question 32 Report
The advertising medium which uses electric current in bulbs is referred to as
Answer Details
The advertising medium you are referring to is neon signs. Neon signs are a type of advertising and signage that use electrified, glowing tubes or bulbs that contain neon gas. When an electric current is passed through the gas, it emits light, creating a bright and eye-catching display. Neon signs are popular because they are highly visible at night and can be customized in various shapes, sizes, and colors. They are often used for attracting attention to businesses or special promotions.
Question 33 Report
The components of a balance of payments account are
Answer Details
The balance of payments (BOP) is a record of all economic transactions between residents of one country and residents of other countries over a specific period. It is divided into three main components, which are: Current, Capital and Monetary movement (financial) account.
Question 34 Report
A wholesaler who acts as an agent on behalf of the owner of the goods in buying or selling for a commission proportionate to the value of the transaction is called a
Answer Details
In the context of trade and commerce, a wholesaler who acts on behalf of the owner of goods in buying or selling, and receives a commission based on the value of the transaction, is typically referred to as a factor.
Here's why:
A factor is a type of agent who is enthusiastically involved in the buying and selling process of goods. This role often involves taking possession of the merchandise, managing the sales, and sometimes providing advance payment to the owner. For these efforts, the factor earns a commission proportionate to the transaction value.
Factors differ from some other types of agents in that they often have more responsibilities, including the power to sell goods in their own name, collect proceeds from buyers, and handle various logistical aspects of the sale.
In contrast:
- A commissioned agent might not necessarily take possession of the goods or manage the detailed logistical aspects of sales.
- A del-credere agent provides a guarantee to the principal that the buyer will perform as agreed, essentially assuming responsibility for any buyer defaults, but this does not inherently describe their primary role in the wholesale process.
- A speculator doesn't fulfill an agency role for the owner of goods but rather buys goods directly to sell at a profit, often taking on significant risk in the hope of financial gain.
Therefore, in the scenario you provided, the term most accurately describing the wholesaler's role as an agent working for a commission based on the transaction value is a factor.
Question 35 Report
A ship which has no fixed schedule and travels wherever it can find cargoes to carry is a
Answer Details
A ship that does not have a fixed schedule and travels wherever it can find cargoes to carry is known as a tramp ship.
Here's why it is called a tramp ship:
Tramp ships operate differently from other types of vessels, such as liners or ferry boats. They do not follow a set route or schedule. Instead, they are flexible and can go to any port where there is cargo to be transported. This means that their operations are based on demand rather than a predetermined timetable.
To put it simply, a tramp ship is like a freelance vessel that looks for cargo opportunities and travels based on where the work is, rather than sticking to a specific route or timeline. This provides a degree of freedom and responsiveness to market demands that fixed-schedule ships, like liners, do not have.
Question 36 Report
The coming together of two or more firms with each of them losing its identity is known as
Answer Details
The coming together of two or more firms with each of them losing its identity is known as an amalgamation.
An amalgamation occurs when two or more companies combine to form a new entity, and as a result, each of the original companies ceases to exist as an independent entity. The firms essentially merge to create a new organization with a new identity. This is different from other forms such as a holding company where individual companies maintain their identities or a consortium, which is generally a collaboration without the loss of individual identities. It's not similar to a cartel either, as a cartel involves competitors collaborating to set prices or output but still maintaining their distinct identities.
Question 37 Report
The principle of insurance which ensures that an individual is restored to his former position after suffering a loss is
Answer Details
The principle of insurance that ensures an individual is restored to his former position after suffering a loss is the principle of indemnity. This principle is based on the idea that insurance is meant to compensate for the financial loss or damage suffered, and nothing more. It ensures that the insured party is not put in a better position than they were before the loss. The goal is simply to bring the insured back to the status they were at before the loss occurred. In essence, indemnity prevents the insured from profiting from an insurance claim, ensuring that they are compensated fairly and justly for their actual loss.
Question 38 Report
Banks issue cheque books to customers holding ___________ accounts.
Answer Details
Banks issue cheque books to customers holding current accounts.
Let me explain why:
A current account is designed for regular transactions. It is ideal for individuals or businesses that need frequent access to their funds. This account allows for multiple daily transactions such as deposits, withdrawals, and transfers.
One primary feature of a current account is the ability to issue cheques. A cheque is a written order to a bank to pay a certain amount of money from one’s account to another person or entity.
Unlike a current account, foreign accounts, deposit accounts, and fixed deposit accounts serve different purposes:
Therefore, banks provide cheque books specifically for current accounts to facilitate regular transactions.
Question 39 Report
A dealer who buys securities at low prices in anticipation of reselling them at higher prices is called a
Answer Details
A dealer who buys securities at low prices in anticipation of reselling them at higher prices is called a bull.
Here's a simple explanation:
Let's contrast this with the other terms mentioned:
Question 40 Report
The aid to trade which enables producer and consumer to transact business without physical contact is known as
Answer Details
The aid to trade that enables a producer and consumer to transact business without physical contact is known as communication.
To understand why, consider the following: Communication is a process that involves the exchange of messages, ideas, and information. With modern technology, such as telephones, emails, and the internet, communication allows people from various locations to interact and conduct business seamlessly. This eliminates the necessity for face-to-face meetings.
For example, a consumer can order a product online and communicate with the seller via chat or email. Similarly, a producer can advertise a product to a global audience through digital platforms without any need for physical presence. These exchanges are facilitated primarily by effective communication.
Would you like to proceed with this action?