All practice questions

Question 7121Question →

Suppose a customer makes a fresh cash deposit of $\text{₦}100,000$ into a commercial bank. If the central bank mandates a cash reserve ratio of $25\%$ , what is the maximum total deposit expansion that the banking system can generate?

\text{₦}400,000

\text{₦}300,000

\text{₦}25,000

\text{₦}125,000

Show answer & explanation

Answer: $\text{₦}400,000$

Answer

The maximum total deposit expansion that the banking system can generate is

\text{₦}400,000

.

The total deposit expansion generated by commercial banks is calculated using the formula

\text{Total Deposits} = \frac{\text{Initial Deposit}}{\text{Cash Reserve Ratio}}

. Given an initial deposit of

\text{₦}100,000

and a cash reserve ratio of

25\%

(

0.25

), the calculation gives

\frac{100,000}{0.25} = \text{₦}400,000

.

Step-by-Step Solution

1

Calculate the credit multiplier

K

K = \frac{1}{\text{Cash Reserve Ratio}} = \frac{1}{0.25} = 4

The credit multiplier determines the extent to which commercial banks can expand total deposits from an initial primary deposit.

2

Compute the total deposit expansion

\text{Total Deposit Expansion} = \text{Initial Deposit} \times K = \text{₦}100,000 \times 4 = \text{₦}400,000

Multiplying the primary deposit by the credit multiplier gives the cumulative expansion across the entire commercial banking system.

Key Concept

Credit Creation Multiplier and Total Deposit Expansion

Estimated Time:45s

Question 7122Question →

Under the Electric Power Sector Reform Act of 2005, the unbundling of the Power Holding Company of Nigeria (PHCN) resulted in the complete privatization of generation, transmission, and distribution assets to private investors.

True

False

Show answer & explanation

Answer: False

Answer

The statement is False. Following the deregulation and unbundling of the Power Holding Company of Nigeria (PHCN) under the Electric Power Sector Reform Act (EPSRA) of 2005, generation and distribution companies were privatized, but the Transmission Company of Nigeria (TCN) remained 100% state-owned.

The statement is false because the Transmission Company of Nigeria (TCN) was explicitly excluded from full private ownership, remaining a public asset, whereas generation and distribution entities were privatized.

Step-by-Step Solution

1

Identify the key components of the Nigerian power sector reform following the 2005 EPSRA.

PHCN was split into 18 successor companies comprising 6 Generation Companies (GenCos), 11 Distribution Companies (DisCos), and 1 Transmission Company.

To examine the structural breakdown of the power sector reform.

2

Analyze the ownership structure resulting from the privatization exercise.

GenCos and DisCos were sold to core private investors, whereas the Transmission Company of Nigeria (TCN) was kept under state control.

Transmission infrastructure is considered a strategic natural monopoly, leading the government to retain full ownership of the national grid.

3

Conclude the truth value of the stem.

Since transmission was not privatized along with generation and distribution, the statement claiming all three sectors were completely privatized is false.

Government retention of TCN contradicts the claim of full three-tier privatization.

Key Concept

Structure and Deregulation of the Nigerian Power Sector

Question 7123Question →

Match each commercial banking concept or credit creation term in Column A with its correct definition or description in Column B.

Click a left item, then click its matching right item

Show answer & explanation

Answer

Primary Functions match with accepting customer deposits and granting loans; Secondary Functions match with providing agency services such as clearing cheques; Credit Multiplier matches with the factor determining overall money expansion (1/CRR); Cash Reserve Ratio matches with the legally mandatory percentage of deposits retained as cash reserves.

Each concept correctly aligns with its precise economic role: Primary Functions represent core deposit-taking and lending; Secondary Functions cover agency services like clearing cheques; Credit Multiplier represents the inverse of the reserve ratio (1/CRR); and Cash Reserve Ratio represents the statutory percentage of deposits kept as reserves.

Step-by-Step Solution

1

Classify the core operations of commercial banking

Primary functions represent direct financial intermediation (taking deposits and advancing loans), while secondary functions represent ancillary agency and general utility services.

Commercial banking activities are categorized based on whether they form core intermediation or supplementary services.

2

Analyze quantitative parameters of credit creation

The Cash Reserve Ratio (CRR) sets the required reserve fraction, and the Credit Multiplier is derived as

\frac{1}{\text{CRR}}

.

The reserve requirement dictates how much of each deposit can be converted into new derivative loans across the commercial banking system.

Key Concept

Commercial Bank Functional Taxonomy and Credit Expansion Parameters

Estimated Time:1m 30s

Question 7124Question →

Treasury Bills are short-term money market instruments issued by the Central Bank on behalf of the government primarily to raise long-term capital for infrastructure development projects.

True

False

Show answer & explanation

Answer: False

Answer

The statement is False. Treasury Bills are short-term debt instruments maturing within 364 days used for short-term liquidity management, not long-term capital formation.

The statement is false because Treasury Bills belong strictly to the money market and are used for short-term liquidity regulation and deficit financing (maturing within one year). Long-term funding for capital projects is provided by capital market instruments such as government development stocks and bonds.

Step-by-Step Solution

1

Identify the maturity duration of Treasury Bills.

Treasury Bills mature in the short term, specifically within 91, 182, or 364 days.

Money market instruments are by definition restricted to short-term financial claims of less than one year.

2

Analyze the financial market required for long-term capital infrastructure projects.

Long-term borrowing for major infrastructure expenditure is conducted in the capital market using instruments such as government bonds or stocks.

Capital markets specialize in mobilizing medium-to-long-term funds exceeding one year.

3

Determine the truth value of the stem statement.

The statement incorrectly conflates short-term money market instruments (Treasury Bills) with long-term capital market borrowing goals.

Because Treasury Bills cannot be used for long-term capital formation, the statement is false.

Key Concept

Distinction between Money Market Instruments (Treasury Bills) and Capital Market Instruments (Government Bonds)

Question 7125Question →

A consumer spends a fixed weekly income $I$ on Good $X$ (plotted on the horizontal axis) and Good $Y$ (plotted on the vertical axis) with unit prices $P_x$ and $P_y$ . Suppose the government imposes a $20\%$ ad valorem tax on Good $X$ while simultaneously providing the consumer with a lump-sum income subsidy equal to $20\%$ of their initial total income $I$ , leaving $P_y$ unchanged. Which of the following correctly describes the structural transformation of the consumer's budget line?

The vertical intercept increases by

20\%

, the horizontal intercept remains unchanged, and the budget line pivots counter-clockwise around the fixed horizontal intercept to become steeper.

The budget line shifts outward in a parallel direction because both nominal income and the price of Good

X

increased by the same proportion.

The horizontal intercept decreases by

20\%

while the vertical intercept remains unchanged because the lump-sum grant exactly neutralizes the price increase of Good

X

.

The slope of the budget line remains constant because the relative price ratio

P_x/P_y

is offset by the

20\%

increase in purchasing power.

Show answer & explanation

Answer: The vertical intercept increases by $20\%$ , the horizontal intercept remains unchanged, and the budget line pivots counter-clockwise around the fixed horizontal intercept to become steeper.

Answer

The vertical intercept increases by 20%, the horizontal intercept remains unchanged, and the budget line pivots counter-clockwise around the fixed horizontal intercept to become steeper.

The initial budget line has a horizontal intercept at

I/P_x

, vertical intercept at

I/P_y

, and slope of magnitude

P_x/P_y

. Following the policy changes, the new income is

1.20I

and the new price of

X

is

1.20P_x

. The new horizontal intercept is

(1.20I)/(1.20P_x) = I/P_x

, which is unchanged. The new vertical intercept is

(1.20I)/P_y

, representing a

20\%

increase. The slope magnitude increases to

(1.20P_x)/P_y = 1.20(P_x/P_y)

, making the budget line steeper. Graphically, anchoring the budget line at the same point on the horizontal axis while pushing its vertical endpoint upward corresponds to a counter-clockwise pivot around the fixed horizontal intercept.

Step-by-Step Solution

1

Express the initial budget equation and its key boundary intercepts and slope.

Initial equation:

P_x X + P_y Y = I

. Horizontal intercept (

X

-axis) =

\frac{I}{P_x}

, Vertical intercept (

Y

-axis) =

\frac{I}{P_y}

, Slope =

-\frac{P_x}{P_y}

.

Establishing initial parameter values allows direct comparison with post-tax and post-subsidy values.

2

Determine the updated price of Good

X

and updated nominal income.

P_x' = (1 + 0.20) P_x = 1.20 P_x

;

I' = (1 + 0.20) I = 1.20 I

;

P_y' = P_y

.

The

20\%

tax inflates

P_x

by a factor of

1.20

, and the

20\%

income subsidy inflates

I

by a factor of

1.20

.

3

Calculate the new horizontal intercept, vertical intercept, and slope.

New Horizontal Intercept =

\frac{I'}{P_x'} = \frac{1.20 I}{1.20 P_x} = \frac{I}{P_x}

(Unchanged).
New Vertical Intercept =

\frac{I'}{P_y'} = \frac{1.20 I}{P_y} = 1.20 \left(\frac{I}{P_y}\right)

(

20\%

increase).
New Slope =

-\frac{P_x'}{P_y'} = -\frac{1.20 P_x}{P_y} = 1.20 \left(-\frac{P_x}{P_y}\right)

(

20\%

magnitude increase, steeper).

Comparing the relative scaling factors reveals which intercept shifts and how the opportunity cost ratio changes.

4

Synthesize the geometrical movement of the budget line.

Since the

X

-intercept is fixed while the

Y

-intercept shifts outward, the budget line pivots counter-clockwise around the

X

-intercept, making it steeper.

A fixed horizontal intercept combined with a higher vertical intercept results in a counter-clockwise rotation.

Key Concept

Budget Line Intercepts and Slope Transformation under Asymmetric Price and Income Changes

Estimated Time:2m 0s

Question 7126Question →

A central bank aims to address a persistent balance of payments deficit by employing an expenditure-reducing monetary policy measure to lower overall domestic demand. Which of the following policy actions achieves this objective?

Raising the discount rate and selling government securities in open market operations

Lowering cash reserve requirements to encourage commercial bank lending to export industries

Imposing ad valorem tariffs and strict quantitative import quotas on foreign goods

Devaluing the domestic currency relative to foreign exchange rates

Show answer & explanation

Answer: Raising the discount rate and selling government securities in open market operations

Answer

Raising the discount rate and selling government securities in open market operations

Raising the discount rate and selling government securities in open market operations contracts the money supply and restricts bank credit. This lowers total domestic aggregate expenditure, reducing income levels and domestic demand for imported goods to help restore balance of payments equilibrium.

Step-by-Step Solution

1

Identify the policy category required by the scenario

The target policy is an expenditure-reducing measure designed to contract total aggregate demand.

Balance of payments adjustment policies are categorized into expenditure-reducing (contractionary fiscal/monetary tools) and expenditure-switching (devaluation, tariffs, exchange controls) measures.

2

Evaluate the monetary policy options against expenditure-reducing criteria

Raising the discount rate and conducting open market sales contract liquidity and credit availability.

Higher interest rates and reduced credit restrain consumer spending and investment, suppressing aggregate domestic demand and lowering import consumption.

Key Concept

Distinction between expenditure-reducing and expenditure-switching policies for balance of payments adjustment

Question 7127Question →

Match each type of plant meristematic tissue on the left with its correct growth function on the right.

Click a left item, then click its matching right item

Show answer & explanation

Answer

Apical meristem pairs with responsible for primary elongation at the apex of stems and roots; Lateral meristem pairs with facilitates increase in girth or secondary growth in stems and roots; Intercalary meristem pairs with promotes internodal elongation located at the base of leaf blades or nodes.

Apical meristems cause lengthening at shoot and root apices. Lateral meristems increase stem and root diameter. Intercalary meristems enable internodal lengthening in monocot stems.

Step-by-Step Solution

1

Analyze the primary role of apical meristems in plant growth.

Apical meristems produce primary growth leading to increased length at tips.

These meristems exist at root and shoot apices where active cell division extends the plant bodies longitudinally.

2

Analyze the role of lateral meristems.

Lateral meristems produce secondary growth increasing thickness.

Located parallel to the long axis, lateral meristems add vascular and cork layers outward and inward.

3

Analyze the function of intercalary meristems.

Intercalary meristems drive internodal extension in monocots.

They remain active at leaf bases and stem nodes, allowing stems to elongate quickly.

Key Concept

Plant Meristematic Tissues and Primary vs Secondary Growth

Estimated Time:45s

Question 7128Question →

In a given fiscal year, a nation records a Gross Domestic Product (GDP) of $\$900\text{ billion}$ and a capital consumption allowance (depreciation) of $\$60\text{ billion}$ . What is the value of the country's Net Domestic Product (NDP)?

\$840\text{ billion}

\$960\text{ billion}

\$900\text{ billion}

\$540\text{ billion}

Show answer & explanation

Answer: $\$840\text{ billion}$

Answer

The Net Domestic Product (NDP) of the country is

\$840\text{ billion}

.

Net Domestic Product (NDP) measures the net market value of all final goods and services produced within a country's boundaries. It is calculated by subtracting Capital Consumption Allowance (depreciation) from Gross Domestic Product (GDP):

\text{NDP} = \text{GDP} - \text{Depreciation} = \$900\text{ billion} - \$60\text{ billion} = \$840\text{ billion}

.

Step-by-Step Solution

1

Identify the relationship between Gross Domestic Product (GDP), depreciation, and Net Domestic Product (NDP)

\text{NDP} = \text{GDP} - \text{Depreciation}

Net aggregates account for the wear and tear of capital goods used during production.

2

Substitute the given numeric values into the national income accounting identity

\text{NDP} = \$900\text{ billion} - \$60\text{ billion} = \$840\text{ billion}

Subtracting

\$60\text{ billion}

from

\$900\text{ billion}

yields the net value of domestic output.

Key Concept

Calculation of Net Domestic Product (NDP) from Gross Domestic Product (GDP)

Estimated Time:45s

Question 7129Question →

A specific indirect tax of $\text{₦}50$ per unit is levied on a commodity. If the price elasticity of demand for the commodity is $1.5$ and the price elasticity of supply is $0.5$ , how much of the tax per unit (in Naira) is borne by the producer?

Show answer & explanation

Answer: 37.5

Answer

The producer bears 37.5 Naira per unit of the tax burden.

The economic incidence of a specific tax depends on the relative price elasticities of demand (

E_d

) and supply (

E_s

). The producer's share per unit is calculated as

T \times \frac{E_d}{E_d + E_s}

. Substituting

T = 50

,

E_d = 1.5

, and

E_s = 0.5

yields

50 \times \frac{1.5}{2.0} = 37.5

Naira.

Step-by-Step Solution

1

Identify the tax incidence formula for the producer's share

Formula:

\text{Producer's Burden} = T \times \left(\frac{E_d}{E_d + E_s}\right)

Tax burden distribution between buyers and sellers depends inversely on their relative price elasticities.

2

Substitute the values into the equation

\text{Producer's Burden} = 50 \times \left(\frac{1.5}{1.5 + 0.5}\right) = 50 \times 0.75 = 37.5

With elastic demand (

E_d = 1.5

) relative to inelastic supply (

E_s = 0.5

), the producer absorbs

75\%

of the tax.

Key Concept

Tax Incidence and Relative Elasticity of Demand and Supply

Question 7130Question →

On a topographic map, index contours are drawn at elevations of $400\text{ m}$ and $700\text{ m}$ . There are $5$ equal contour intervals (spaces) between these two index contours. A radio transmission mast is located on a contour line situated $3$ contour intervals higher than the $700\text{ m}$ index contour. What is the elevation, in meters, of the contour line where the radio mast is located?

Show answer & explanation

Answer: 880

Answer

The elevation of the contour line where the radio mast stands is

880\text{ m}

.

The elevation difference between the

400\text{ m}

and

700\text{ m}

index lines is

300\text{ m}

. With

5

equal spaces separating them, the contour interval is

60\text{ m}

. Adding

3

contour intervals (

180\text{ m}

) to the

700\text{ m}

index line yields an elevation of

880\text{ m}

.

Step-by-Step Solution

1

Calculate the elevation difference between the given index contours.

Vertical difference =

700\text{ m} - 400\text{ m} = 300\text{ m}

.

Index contours serve as reference lines to determine the vertical rise across intervening contour spaces.

2

Determine the contour interval (the vertical distance between consecutive contour lines).

Contour Interval =

\frac{300\text{ m}}{5} = 60\text{ m}

.

Dividing the total height difference between index lines by the number of spaces gives the value of a single contour interval.

3

Calculate the target elevation at 3 contour intervals above the

700\text{ m}

index line.

Target elevation =

700\text{ m} + (3 \times 60\text{ m}) = 880\text{ m}

.

Adding three vertical intervals (

180\text{ m}

) to the

700\text{ m}

reference line gives the exact height of the target contour line.

Key Concept

Contour Interval Determination and Relief Elevation Calculation

Question 7131Question →

A weather monitoring station situated at longitude $55^\circ\text{W}$ records a local solar time of $08:20\text{ AM}$ . At the exact same instant, a maritime research vessel logs a local solar time of $02:40\text{ PM}$ . What is the longitude of the maritime research vessel in degrees East ( $^\circ\text{E}$ )?

Show answer & explanation

Answer: 40

Answer

The longitude of the maritime research vessel is

40^\circ\text{E}

.

The time difference between

08:20\text{ AM}

(

55^\circ\text{W}

) and

02:40\text{ PM}

(

14:40

) is

6\text{ hours and } 20\text{ minutes}

, which equals

380\text{ minutes}

. At a rate of

4\text{ minutes per degree}

of longitude, this represents a longitudinal difference of

95^\circ

. Since the vessel's local solar time is ahead, it is situated to the East. Measuring

95^\circ

East from

55^\circ\text{W}

crosses the Greenwich Meridian (

0^\circ

) after

55^\circ

, placing the vessel at

40^\circ\text{E}

.

Step-by-Step Solution

1

Calculate the time difference between the weather monitoring station and the maritime research vessel.

Time difference =

14:40 - 08:20 = 6\text{ hours } 20\text{ minutes} = 380\text{ minutes}

.

Converting 02:40 PM to 24-hour solar time (14:40) allows direct subtraction of the times.

2

Convert the time difference into angular degrees of longitude.

Angular distance =

\frac{380\text{ minutes}}{4\text{ minutes per degree}} = 95^\circ

.

The Earth rotates

360^\circ

in 24 hours, which corresponds to

1^\circ

of longitude every 4 minutes.

3

Determine the direction and calculate the vessel's longitude.

95^\circ\text{ East} - 55^\circ\text{ West to Prime Meridian} = 40^\circ\text{E}

.

Because the local solar time at the vessel is ahead (later in the day), the vessel is located to the East. Traveling

95^\circ

East starting from

55^\circ\text{W}

uses

55^\circ

to reach

0^\circ

(Prime Meridian), leaving

40^\circ

in the Eastern Hemisphere.

Key Concept

Longitude calculation from local solar time difference across the Prime Meridian

Estimated Time:1m 30s

Question 7132Question →

A series alternating current (AC) circuit consists of a resistor of resistance $6\ \Omega$ and an inductor with inductive reactance $8\ \Omega$ . What is the total impedance of the circuit?

10\ \Omega

14\ \Omega

2\ \Omega

48\ \Omega

Show answer & explanation

Answer: $10\ \Omega$

Answer

The total impedance of the circuit is

10\ \Omega

.

In a series RL alternating current circuit, total impedance

Z

combines resistance

R

and inductive reactance

X_L

as perpendicular vector components. Using

Z = \sqrt{R^2 + X_L^2}

, substituting

R = 6\ \Omega

and

X_L = 8\ \Omega

gives

Z = \sqrt{6^2 + 8^2} = \sqrt{100} = 10\ \Omega

.

Step-by-Step Solution

1

Identify the given values for resistance and inductive reactance.

R = 6\ \Omega

and

X_L = 8\ \Omega

.

These are the resistive and reactive opposition components in the series RL circuit.

2

Apply the impedance formula for a series RL circuit.

Z = \sqrt{R^2 + X_L^2}

Voltage across a resistor and an inductor are

90^\circ

out of phase, requiring vector/phasor addition to determine total impedance.

3

Calculate the magnitude of total impedance.

Z = \sqrt{6^2 + 8^2} = \sqrt{36 + 64} = \sqrt{100} = 10\ \Omega

.

Evaluating the square root yields the net opposing effect to AC current flow.

Key Concept

Impedance in a Series RL Circuit

Question 7133Question →

An alternating current supply is connected in series with a resistor of resistance $12\ \Omega$ and an inductor of inductive reactance $5\ \Omega$ . What is the total impedance of the circuit?

13\ \Omega

17\ \Omega

7\ \Omega

169\ \Omega

Show answer & explanation

Answer: $13\ \Omega$

Answer

13\ \Omega

In a series R-L alternating current circuit, the voltage across the resistor is in phase with the current, while the voltage across the inductor leads the current by

90^\circ

. Consequently, resistance and inductive reactance combine vectorially. The total impedance is

Z = \sqrt{R^2 + X_L^2} = \sqrt{12^2 + 5^2} = \sqrt{169} = 13\ \Omega

.

Step-by-Step Solution

1

Identify the given values

Resistance

R = 12\ \Omega

, inductive reactance

X_L = 5\ \Omega

These are the given parameters of the series R-L circuit.

2

Apply the total impedance formula for a series R-L AC circuit

Z = \sqrt{R^2 + X_L^2}

In an AC circuit, resistance and reactance are perpendicular vectors (

90^\circ

out of phase).

3

Substitute the given values and calculate the result

Z = \sqrt{12^2 + 5^2} = \sqrt{144 + 25} = \sqrt{169} = 13\ \Omega

Evaluating the square root yields the total opposition to alternating current.

Key Concept

Impedance of Series AC Circuits

Estimated Time:45s

Question 7134Question →

A commercial bakery acquires a heavy-duty industrial generator under a hire purchase agreement. The cash price of the generator is $₦3,200,000$ . The agreement requires an initial deposit of $25\%$ of the cash price, with the remaining balance paid in $10$ equal monthly installments of $₦270,000$ each. What is the total hire purchase interest charged on this transaction in Naira?

Show answer & explanation

Answer: 300000

Answer

The total hire purchase interest charged on the transaction is 300,000 NGN.

The total financial outlay under the hire purchase agreement consists of the

25\%

deposit (

₦800,000

) plus the

10

monthly installments of

₦270,000

(

₦2,700,000

), totaling

₦3,500,000

. Subtracting the cash price of

₦3,200,000

yields a total hire purchase interest (carrying charge) of

₦300,000

.

Step-by-Step Solution

1

Calculate the initial deposit amount

Initial deposit = ₦800,000

The deposit is 25% of the cash price of ₦3,200,000 (0.25 × 3,200,000 = 800,000).

2

Calculate the cumulative total of all monthly installment payments

Total installments = ₦2,700,000

10 monthly installments of ₦270,000 equal 10 × 270,000 = 2,700,000.

3

Calculate the total hire purchase price

Total hire purchase price = ₦3,500,000

Total Hire Purchase Price = Initial Deposit + Total Installments = 800,000 + 2,700,000 = 3,500,000.

4

Deduct the cash price from the total hire purchase price to determine the total finance/interest charge

Total interest = ₦300,000

Interest = Total Hire Purchase Price - Cash Price = 3,500,000 - 3,200,000 = 300,000.

Key Concept

Calculation of total hire purchase price and carrying charges (interest)

Question 7135Question →

The provision of inefficient and fragmented transport networks serves as a major catalyst for commercial expansion because it forces regional markets to achieve localized self-sufficiency.

True

False

Show answer & explanation

Answer: False

Answer

False. Efficient transport infrastructure is a fundamental driver of commercial growth. Inefficient transport restricts market access, increases transaction costs, and stifles commercial expansion.

The statement is false because transportation is a vital aid to trade. An inefficient transportation network hinders commercial growth by restricting market reach, increasing commodity distribution costs, and preventing economies of scale.

Step-by-Step Solution

1

Identify the core commercial factor described in the statement.

The statement examines transport infrastructure as an auxiliary service influencing commercial growth.

Transport connects producers to consumers and enables market integration.

2

Analyze how transportation efficiency impacts commercial growth.

Commercial growth requires expanding exchange beyond local boundaries, which depends directly on rapid, cost-effective transit.

Poor transportation causes delays, high freight fees, and localized market fragmentation.

3

Evaluate the truth value of the assertion.

The assertion that inefficient transport promotes growth through local self-sufficiency is false.

Self-sufficiency undermines commercial specialization and limits the scope of trade.

Key Concept

Impact of Transportation Infrastructure on Commercial Growth

Question 7136Question →

Under the Sale of Goods Act, an unpaid seller's right of stoppage in transitu is defeated if the buyer lawfully transfers the document of title to a third party who accepts it in good faith and for valuable consideration.

True

False

Show answer & explanation

Answer: True

Answer

The statement is true because the transfer of a document of title to a bona fide third party for value defeats the unpaid seller's right of stoppage in transitu.

The statement accurately reflects the statutory proviso under the Sale of Goods Act. If an insolvent buyer transfers a document of title to a sub-buyer who takes it in good faith and for valuable consideration, the unpaid seller loses the right of stoppage in transitu against that third party.

Step-by-Step Solution

1

Identify the legal context and rights of the unpaid seller

The scenario concerns the unpaid seller's right of stoppage in transitu when goods are sold to an insolvent buyer.

Stoppage in transitu allows an unpaid seller to resume possession of goods while they are in transit upon discovering the buyer's insolvency.

2

Apply the statutory rule regarding sub-sales and documents of title

While a general sub-sale by the buyer does not affect the seller's right, the lawful transfer of a document of title (e.g., bill of lading) to a bona fide purchaser for value defeats the seller's right of stoppage.

Commercial law protects good-faith transferees of documents of title to facilitate international and home trade fluidity.

Key Concept

Exceptions to Unpaid Seller's Right of Stoppage in Transitu

Question 7137Question →

In an integrated commercial ecosystem in Kano, a cotton farming syndicate harvests raw seed cotton, a textile mill processes it into finished fabrics, and a merchant wholesaler utilizes warehousing, commercial banking, and transit insurance to distribute the fabric to clothing retailers. Which of the following statements correctly analyzes the interrelationship among industry, commerce, and occupation in this sequence?

Industry creates form utility through primary extraction and secondary manufacturing, while commercial occupations provide place, time, and possession utilities that enable industrial products to reach consumers.

The cotton farming syndicate and the textile mill both operate strictly within the extractive industry because both process agricultural outputs prior to commercial exchange.

The wholesaler and its auxiliary logistics providers constitute trade, which functions completely independently of commerce to market manufactured fabric.

The banking, warehousing, and transit insurance services utilized by the wholesaler are classified as direct service occupations because they cater to custom business contracts.

Show answer & explanation

Answer: Industry creates form utility through primary extraction and secondary manufacturing, while commercial occupations provide place, time, and possession utilities that enable industrial products to reach consumers.

Answer

Industry creates form utility through primary extraction and secondary manufacturing, while commercial occupations provide place, time, and possession utilities that enable industrial products to reach consumers.

The statement emphasizing that industry creates form utility through extraction and manufacturing while commercial occupations provide place, time, and possession utilities accurately reflects how production, commerce, and occupation interlock to deliver goods to final consumers.

Step-by-Step Solution

1

Analyze the industrial phase of the scenario.

Cotton farming represents primary (extractive) industry, while textile milling represents secondary (manufacturing) industry. Together, they create form utility by turning raw land yield into usable cloth.

Production begins with raw extraction and physical transformation of materials into finished products.

2

Analyze the commercial and occupational phase of the scenario.

Wholesaling represents trade, while banking, warehousing, and insurance represent auxiliaries to trade. These commercial occupations facilitate exchange by bridging spatial, temporal, and financial gaps.

Without commerce, manufactured goods remain unsold at factories, rendering production incomplete.

3

Synthesize the interrelationship between industry, commerce, and occupation.

Industry and commerce are interdependent branches of production. Industrial occupations create goods (form utility), whereas commercial occupations distribute them (place, time, and possession utilities).

Production is only complete when goods reach the final consumer, demonstrating the indispensable linkage between industrial extraction/manufacturing and commercial distribution.

Key Concept

Inter-relationship Between Industry, Commerce, and Occupation

Estimated Time:1m 30s

Question 7138Question →

Importers can defer the payment of import tariffs by storing dutiable goods in a bonded warehouse, but the goods will only be released for entry into the domestic market after the assessed customs duties have been fully cleared.

True

False

Show answer & explanation

Answer: True

Answer

The statement is True. A bonded warehouse allows duty deferment, but the goods cannot enter the domestic market until all required customs duties are paid.

The statement correctly reflects the statutory operation of bonded warehouses, which grant importers temporary relief from immediate tax liabilities while retaining customs control until duties are settled for local release.

Step-by-Step Solution

1

Analyze the primary function of a bonded warehouse regarding customs duties.

Bonded warehouses provide a facility where dutiable imported goods are stored under customs bond without immediate tariff payment.

This allows business owners to manage cash flow through duty deferment while goods are being stored, repacked, or processed.

2

Examine the statutory condition for releasing goods into the local market.

Customs authorities release goods for domestic distribution only upon full settlement of the applicable customs duties.

Customs supervision guarantees that public revenues are protected before imported merchandise enters home consumption.

Key Concept

Bonded Warehousing and Customs Duty Deferment

Question 7139Question →

A geometric progression has a first term of $5$ and a common ratio of $2$ . What is the $6^{\text{th}}$ term of this progression?

160

320

60

15

Show answer & explanation

Answer: $160$

Answer

The

6^{\text{th}}

term of the geometric progression is

160

.

The

n^{\text{th}}

term of a geometric progression is given by

T_n = a r^{n-1}

. Substituting

a = 5

,

r = 2

, and

n = 6

yields

T_6 = 5 \times 2^5 = 5 \times 32 = 160

, which makes

160

the correct value.

Step-by-Step Solution

1

Identify the given values from the problem statement.

First term

a = 5

, common ratio

r = 2

, and term index

n = 6

.

These parameters are required for the

n^{\text{th}}

term formula of a geometric progression.

2

State the formula for the

n^{\text{th}}

term of a Geometric Progression (GP).

T_n = a r^{n-1}

The

n^{\text{th}}

term of a GP is obtained by multiplying the initial term by the common ratio raised to the power of

n-1

.

3

Substitute the values into the formula and evaluate.

T_6 = 5 \times 2^{6-1} = 5 \times 2^5 = 5 \times 32 = 160

Evaluating

2^5 = 32

and then multiplying by

5

yields the correct

6^{\text{th}}

term.

Key Concept

Geometric Progression

n^{\text{th}}

Term

Question 7140Question →

If $\log_x 2 \cdot \log_{\frac{x}{16}} 2 = \log_{\frac{x}{64}} 2$ , what is the sum of all possible real values of $x$ ?

5

12

32

66

Show answer & explanation

Answer: 12

Answer

The sum of all possible real values of

x

is 12.

Applying the reciprocal base formula

\log_a b = \frac{1}{\log_b a}

allows us to express the equation as

\frac{1}{\log_2 x} \cdot \frac{1}{\log_2 x - 4} = \frac{1}{\log_2 x - 6}

. Letting

u = \log_2 x

, we obtain

\frac{1}{u(u-4)} = \frac{1}{u-6}

, which simplifies to the quadratic equation

u^2 - 5u + 6 = 0

. Factoring gives

u = 2

or

u = 3

. Solving for

x = 2^u

yields

x = 2^2 = 4

and

x = 2^3 = 8

. The sum of these values is

4 + 8 = 12

.

Step-by-Step Solution

1

Apply the change of base rule

\log_a b = \frac{1}{\log_b a}

to convert all logarithms to base 2.

\frac{1}{\log_2 x} \cdot \frac{1}{\log_2\left(\frac{x}{16}\right)} = \frac{1}{\log_2\left(\frac{x}{64}\right)}

Converting terms to a common base (base 2) simplifies the variable terms in the denominators.

2

Use the quotient rule of logarithms

\log_b\left(\frac{M}{N}\right) = \log_b M - \log_b N

and substitute

u = \log_2 x

.

\log_2\left(\frac{x}{16}\right) = u - 4 \quad \text{and} \quad \log_2\left(\frac{x}{64}\right) = u - 6

Since

\log_2 16 = 4

and

\log_2 64 = 6

, substituting

u = \log_2 x

transforms the expression into an algebraic equation in terms of

u

.

3

Form and solve the algebraic equation for

u

.

\frac{1}{u(u - 4)} = \frac{1}{u - 6} \implies u(u - 4) = u - 6 \implies u^2 - 5u + 6 = 0

Equating the denominators yields a quadratic equation

u^2 - 5u + 6 = 0

.

4

Factor the quadratic equation to find

u

, then solve for

x

.

(u - 2)(u - 3) = 0 \implies u = 2 \text{ or } u = 3 \implies x = 2^2 = 4 \text{ or } x = 2^3 = 8

Converting back from

u = \log_2 x

gives the real roots

x = 4

and

x = 8

.

5

Calculate the sum of the valid solutions.

4 + 8 = 12

The question asks specifically for the sum of all possible real values of

x

.

Key Concept

Logarithm Change of Base Formula and Logarithmic Equations

Estimated Time:2m 0s

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