Observation

Comments

Most candidates who attempted this question did well in part (a). However, some candidates wrote their answers in phrases when they were expected to make a complete sentence. For (b) part of the question, many candidates explain the operators without including their functions in the stock exchange.

The expected responses are.
(a)        Functions of money

1. It serves as a medium of exchange
2. It serves as a standard of deferred payment
3. It is used as a unit of account                                                                                    
4. It is used as a measure of value
5. It serves as a store of value    

       (b)        How the following operators function on a stock exchange

1. Bull: This is a speculator who buys securities with the intention of reselling them at a           higher price before the payment of the securities is due.
2. Jobber: He buys and sells securities on his own for a profit called jobbers’ turn.
3. Broker: This is an individual or firm who links buyers and sellers of securities with           jobbers and earns a commission known as brokerage.
4. Stag: This is a speculator who subscribes to new issue of shares in the hope of selling       them at a profit when dealings in them begin.