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Commerce and Trade Quiz

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Commerce can best be described as:

a)

The production of goods and services

b)

The distribution and exchange of goods and services

c)

The consumption of goods and services

d)

The storage of goods and services

2.

Which of the following is NOT an aid to trade?

a)

Banking

b)

Advertising

c)

Transport

d)

Farming

3.

The main difference between trade and commerce is that:

a)

Trade involves buying and selling, while commerce includes all activities that facilitate trade

b)

Trade deals only with services, while commerce deals only with goods

c)

Commerce excludes distribution, while trade includes it

d)

Trade is broader than commerce

4.

Which of the following is an example of home trade?

a)

Exporting cocoa to Britain

b)

Selling yam in a local market

c)

Importing cars from Japan

d)

Buying crude oil abroad

5.

The movement of goods and services across national borders is known as:

a)

Wholesale trade

b)

Retail trade

c)

Foreign trade

d)

Domestic trade

6.

Which of these is an example of invisible trade?

a)

Importing rice from China

b)

Exporting crude oil to the USA

c)

Providing shipping services to another country

d)

Selling electronics locally

7.

The process of turning raw materials into finished goods is called:

a)

Production

b)

Distribution

c)

Consumption

d)

Specialization

8.

Which of the following is the main role of a wholesaler?

a)

Selling in small units to final consumers

b)

Buying in large quantities and selling to retailers

c)

Producing raw materials for manufacturers

d)

Advertising goods to the public

9.

A person who buys goods in small quantities for personal use is a:

a)

Retailer

b)

Producer

c)

Consumer

d)

Wholesaler

10.

Which of the following is NOT a function of money?

a)

Store of value

b)

Medium of exchange

c)

Unit of account

d)

Production of goods

11.

The insurance principle which states that you cannot recover more than the value of your loss is called:

a)

Subrogation

b)

Indemnity

c)

Contribution

d)

Proximate cause

12.

The document used by a seller to demand payment before goods are delivered is called:

a)

Invoice

b)

Quotation

c)

Proforma invoice

d)

Receipt

13.

Which of these is an advantage of advertising?

a)

It increases production costs

b)

It encourages mass production

c)

It discourages competition

d)

It reduces sales volume

14.

A current account holder in a bank can withdraw more money than he has deposited through:

a)

Standing order

b)

Overdraft

c)

Loan

d)

Fixed deposit

15.

Which of the following refers to the movement of goods from the producer to the final consumer?

a)

Consumption chain

b)

Production chain

c)

Distribution channel

d)

Trade link

16.

The term “Division of Labour” means:

a)

Sharing work among workers according to their skills

b)

Producing only for oneself

c)

A worker doing all the tasks alone

d)

Sharing profits among workers

17.

A retailer who sells goods from house to house is known as a:

a)

Chain store retailer

b)

Mobile trader

c)

Multiple shop dealer

d)

Department store retailer

18.

The balance of trade is the difference between a country’s:

a)

Visible exports and visible imports

b)

Invisible exports and invisible imports

c)

Exports and savings

d)

Imports and services

19.

The bank document that shows details of a customer’s account is called:

a)

Ledger

b)

Bank statement

c)

Cheque

d)

Passbook

20.

Which of the following is NOT a characteristic of a good?

a)

It is tangible

b)

It can be stored

c)

It can be touched

d)

It is invisible