Basic issues in foreign trade - balance of payments - Jamb Commerce Past Questions and Answers

Question 1:

• JAMB 1994

Commerce is defined as the study of how

A. Man utilizes the resources in his physical environment
B. Man produces, distributes and consumes his goods and services
C. Man buys, sells and distributes goods and services
D. Raw materials are changed into finished goods

Question 2:

• JAMB 1994

The rate at which a country's exports exchange for its imports is called

A. Balance of payments
B. Balance of trade
C. terms of payment
D. Terms of trade

Question 3:

• JAMB 1994

The difference between the total payments for imports and the receipts from exports within a given period is referred to as

A. Balance of payments
B. Balance of trade
C. Comparative cost advantage
D. Comparative advantage

Question 4:

• JAMB 1995

Most foreign trade transaction are paid for through the use of

A. Central bank cheques
B. Bank drafts drawn by commercial banks on their foreign branches
C. Irrevocable and confirmed letters of credit
D. Letters of credit authenticated by the embassies of the respective countries

Question 5:

• JAMB 1998

What document is required when a country imposes ad valorem import duties on goods?

A. A mail transfer
B. A shipping note
C. A billb of lading
D. A consular invoice