WAEC Commerce 2019 Theory — Question 3

Model answer

(a) Reasons for dishonouring cheques: • Insufficient balance in the account. • Irregularity on the cheque. • Cancellation of the cheque. • Stale date on the cheque. • An order from the account operator that the account should not be debited. (b) Reasons countries introduce restrictions on foreign trade: • To promote and protect local industry. • To correct balance of payment problems. • To avoid importation of banned goods. • To avoid dumping. • As a retaliation method against a country that bans exports from their own country.