Question

3(a) State five factors a bank manager would consider before granting a loan to a young school leaver.
(b) State five conditions that will make a bank to dishonour a customer's cheque.

Accepted Answer

(a) Factors a bank manager may consider: (i) The nature of business which the receiver of the loan wants to venture into; (ii) The collateral presented by the school leaver; (iii) The brilliance of the school leaver; (iv) The guarantor of the school leaver; (v) The past experience of the banker about the school leaver in the community he is operating.

(b) Conditions for dishonouring cheques: (i) Irregularities on the cheque; (ii) When the bank receives an order from the issuer to dishonour it; (iii) Suspicion feeling about the payee; (iv) When the cheque has stale; (v) Lack of reliable means of identification.

WAEC Commerce 2024 Theory — Question 3

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