WAEC Commerce 2021 Theory — Question 3

Model answer

(a) Functions of money: 1. Money serves as a store of value. 2. It serves as a unit of measurement. 3. It serves as a standard for deferred payment. 4. Money serves as a medium of exchange. (b) (i) Bull: a stock market speculator who buys stocks in the expectation that the price will rise in the very short term, then resells at a profit – an opportunity seeker. (ii) Jobber: a person who holds shares on their own account and helps boost market liquidity by matching investors' buy and sell orders through their brokers; also called a jobber because they buy and sell at the flow of the market. (iii) Broker: an independent person or company that organizes and executes financial transactions on behalf of another party, helping people/companies manage shares; sometimes acts as an underwriter. (iv) Stag: unlike a bull, a stag is a one-day buyer and seller of securities, buying from a distress seller and selling to a desperate buyer.