JAMB Commerce 2005 Question 17

Question 17

Foreign Trade

An instrument that is traded in the second-tier foreign exchange market is

A.money order
B.stock
C.travellers' cheque
D.debenture

Show the answer and explanation

Answer: C (travellers' cheque)

Explanation

The foreign exchange market deals in foreign currency and its instruments such as travellers' cheques. Stocks and debentures are traded on the stock exchange.