JAMB Commerce 2003 Question 42

Question 42

Banking

Banks are engaged in the business of buying and selling of

  1. A.bills of exchange
  2. B.instruments of credit
  3. C.intangible products
  4. D.land
Show the answer and explanation

Answer: A (bills of exchange)

Explanation

Banks discount (buy) bills of exchange before they mature and may sell (rediscount) them.