Comments

Candidates who attempted this question performed well. However, some candidates mis-used words and spelt some words wrongly.

The expected responses are.

1. Reasons a bank would dishonour a cheque
1. When the amount written in figures does not correspond to the one in words.


2. When the drawer’s signature is different from the specimen captured when the account was opened.


3. If the bank has been informed about the demise or insanity of the account holder.


4. When a court of competent jurisdiction freezes the account (Garnishee order).


5. When the amount on the cheque is greater than the account balance.


6. When the owner orders the bank to stop the payment of the cheque.


7. If the cheque is not presented within a period of six months.


8. If there are alterations without signature.


9. If any of the essential features of a cheque is missing. (Date, Signature, Payee)


10. If the cheque is mutilated.


11. If the cheque is presented before the date written on it/ post-dated.


2. Reasons countries introduce restrictions in foreign trade


1. Countries restrict trade to protect their home/infant industries from the competition of more advanced industries abroad.


2. To enable local industries to expand and employ indigenes.


3. Trade restriction, through the use of tariffs generates revenue for governments.


4. Countries restrict foreign trade to improve their balance of payment with other countries.


5. Foreign trade restrictions are usually employed to preserve a country’s foreign reserves.


6. Countries may restrict trade as a retaliatory measure.


7. Trade restriction is also used to reduce the demand for specific goods.


8. To prevent dumping of goods from more established foreign firms.


9. To prevent importation of harmful goods.