UNILAG 2008 Post-UTME Commerce: Questions, Answers, and Explanations
UNIVERSITY OF LAGOS 2008 POST-UTME COMMERCE
1. 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
2. Which of the following statements is TRUE about sea transport?
A. All ships have specic routes to ply
B. All ships must be insured at every journey
C. All ships are insured separately from the crew
D. All ships normally arrive at their destination with goods
3. Goods discharged from ships on which import duties have not been paid are kept in the
A. ordinary warehouse
B. public warehouse
C. private warehouse
D. bonded warehouse
4. The postal organization which proceeded in Nigerian Postal Service is
A. Post and Telecommunications
B. Post and Telephone
C. Post and Teleprinter
D. Post and Telegraph
5. 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. term of trade
6. A sole proprietor insured his good worth N200,000 for half the value. There was a fire incident in which goods valued at N80,000 were destroyed. The value of compensation expected from the insurer is
A. N40,000
B. N80,000
C. N100,000
D. N200,000
7. The elements of the marketing mix areA. product, promotion, place and price
B. personal selling, advertising and research
C. promotion, production, place and price
D. procurement, product and place.
8. The financial institution established to boost Nigeria’s trade with the rest of the world is called
A. Nigerian Deposit insurance Corporation
B. Nigeria Economist Reconstruction Fund
C. Nigerian Industrial Development Bank
D. Nigerian Export-Import Bank
9. One of the effects of the devaluation of the Naira is that the
A. goods that can be imported with the Naira have become cheaper
B. value of other currencies relative to the Naira have become cheaper
C. goods that can be exported from Nigeria have become costlier
D. imports that can be bought with the Naira have become costlier
10.A pro forma invoices is NOT required when
A. quoting for the supply of goods
B. goods are sent on approval
C. dealing regularly with a customer
D. final prices are uncertain.
11. The Second-Tier Securities Market isA. an appendage to the Nigerian Stock Exchange
B. a member of the Nigeria Stock Exchange
C. meant for the shares of the quoted private companies
D. a regulating ann of the Nigeria Stock Exchange.
12.The business in the stock exchange is characterized essentially by
A. dealing
B. brokerage
C. speculations
D. transactions
13.Which of the following is both direct and indirect credit enterprises?
A. Co-operative and Thrifts Society
B. Retail Co-operation Society
C. Consumer Co-operative Society
D. Wholesaler Co-operative Society
14. Drawing two parallel lines across a cheque means that is has to be paid into the account of the
A. payee
B. drawer
C. drawee
D. payer
15. Which of the following is an example of trade credit?
A. Factoring
B. Shipping
C. Ordering
D. Consignment
16. The act of returning goods taken on approval to the original supplier after identifying them with an order or invoice number is called ______
A. shipping back
B. shipping out
C. shipping off
D. shipping in
17. The Nomenclature for the International Statistical Classification of Products and Services is an international standard used to classify goods into “classes” or categories, agreed upon by UNO and WTO members.
A. True
B. False
c. False
D. True
18. Trade promotion is the business of a company to encourage retailers and consumers to buy more of its products.
A. True
B. False
C. Partly true
D. Partly false
19. In many countries, one role of the central bank is lending money directly to businesses through the general public.
A. True
B. False
C. Partly true
D. Partly false
20 According to the cataloging format approved by the Cataloguing-in-Publication (CIP) Task Force, a book designed for secondary school students should be classified under what class number?
A. 371.8
B. 372.8
C. 371.3
D. 370.821
University of Lagos 2008 Post-UTME Commerce Questions and Answers with Explanations
Below are the questions with the most accurate answers, explanations, and additional examples for better understanding.
1. The difference between the total payments for imports and the receipts from exports within a given period is referred to as:
Answer: A. Balance of payments
Explanation: The balance of payments includes all economic transactions, whereas the balance of trade focuses only on goods.
2. Which of the following statements is TRUE about sea transport?
Answer: D. All ships normally arrive at their destination with goods
Explanation: This is a general expectation unless disrupted by unforeseen circumstances.
3. Goods discharged from ships on which import duties have not been paid are kept in the:
Answer: D. Bonded warehouse
Explanation: Bonded warehouses are used to store goods awaiting customs clearance.
4. The postal organization which preceded the Nigerian Postal Service is:
Answer: A. Post and Telecommunications
Explanation: This was the body responsible for mail services before NIPOST.
5. The rate at which a country’s exports exchange for its imports is called:
Answer: D. Terms of trade
Explanation: This shows the relationship between export prices and import prices.
6. A sole proprietor insured his goods worth N200,000 for half the value. Goods worth N80,000 were destroyed. The value of compensation expected is:
Answer: A. N40,000
Explanation: Compensation is proportional to the insured value: 80,000×100,000200,000=40,000\frac{80,000 \times 100,000}{200,000} = 40,000.
7. The elements of the marketing mix are:
Answer: A. Product, promotion, place, and price
Explanation: These are the four pillars of marketing known as the 4Ps.
8. The financial institution established to boost Nigeria’s trade with the world is called:
Answer: D. Nigerian Export-Import Bank
Explanation: NEXIM Bank facilitates export-import financing.
9. One of the effects of the devaluation of the Naira is that:
Answer: D. Imports that can be bought with the Naira have become costlier
Explanation: Devaluation reduces the purchasing power of a currency abroad.
10. A pro forma invoice is NOT required when:
Answer: C. Dealing regularly with a customer
Explanation: For regular customers, a full invoice is usually issued.
11. The Second-Tier Securities Market is:
Answer: A. An appendage to the Nigerian Stock Exchange
Explanation: It provides access to smaller companies to trade shares.
12. The business in the stock exchange is characterized essentially by:
Answer: C. Speculations
Explanation: Investors speculate to buy or sell shares for profit.
13. Which of the following is both direct and indirect credit enterprises?
Answer: A. Co-operative and Thrifts Society
Explanation: They offer loans (direct) and bulk purchase (indirect) benefits.
14. Drawing two parallel lines across a cheque means it has to be paid into the account of the:
Answer: A. Payee
Explanation: This process is called “crossing” a cheque, ensuring added security.
15. Which of the following is an example of trade credit?
Answer: D. Consignment
Explanation: Goods are supplied without immediate payment, allowing credit terms.
16. The act of returning goods taken on approval to the original supplier is called:
Answer: B. Shipping out
Explanation: It implies goods being sent back after inspection.
17. The Nomenclature for the International Statistical Classification of Products and Services is an international standard:
Answer: A. True
Explanation: It ensures uniformity in product categorization globally.
18. Trade promotion is the business of a company to encourage retailers and consumers to buy more:
Answer: A. True
Explanation: Examples include discounts, free samples, and advertising campaigns.
19. In many countries, one role of the central bank is lending money directly to businesses:
Answer: B. False
Explanation: Central banks typically regulate commercial banks, not lend directly.
20. A book designed for secondary school students should be classified under what class number?
Answer: B. 372.8
Explanation: This is the appropriate category for educational resources aimed at secondary-level students.
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