Ordinary level 2024 Littoral mock commerce all correction

Ordinary level 2024 Littoral mock commerce all correction

Ordinary level 2024 Littoral mock commerce all correction

PAPER 2
Question 1
(a) Factors that have contributed to the growth of financial institutions in Cameroon:
 Increase in population. In recent years the population of Cameroon has greatly increased and this has
necessitated the creation of many financial institutions.
 Increase in income. The income of Cameroonians has increased in recent years and has created the
awareness to save money.
 Increase in the level of business activities has enabled businessmen to save and borrow money.
 Increase in the number of professional bankers has encouraged the establishment of many financial
institution.
 Government policies. The government of Cameroon has encouraged the creation of many financial
institutions since it is a channel of economic growth and development.
 Increased awareness of insecurity in handling funds.
 Improvement in communication.
 Increased living standards. (2mks x 5pts = 10mks)
(b) Differences between a current account and a deposit account.
Current account Deposit account
 Notification is not required for cash withdrawal  Notification is required for cash withdrawal
 Account holders use cheque booklets  Account holders use passbook
 Account holders have overdraft facilitates  Account holders do not have an overdraft
facility
 Withdrawal can be done with the use of a cash
dispenser
 Withdrawal cannot be made using cash
dispensers
 Cheque can be drawn on the behalf of a third
party
 Cheque cannot be drawn on the behalf of third
party
 Customers pay charges to the bank for
safeguarding their money
 Earns interest because the bank makes use of
the money
(2mks x 5pts = 10mks)
Question 2
(a) Advantages of containerization and pipeline transport
(i) Containerization
 It reduces damage and theft of goods
 It provides refrigeration for perishable goods
 It makes efficient use of space in container ships because it is of standard size
 It serves as a place for accommodation