NABTEB QUESTIONS

Would you include all or any of the following under the heading of money? Give reason(s) for your answer i. Cheques ii. Postal orders iii. Bank notes iv. Coins v. Bank deposits – NABTEB QUESTION

i. Cheque: Cheque is the category of near money which are not widely acceptable as a means of payment.

ii. Postal orders: This is also near money.

iii. Bank notes is a legal tender that is generally acceptable hence it is money. This is paper money. Bank notes are in
higher denominations of N5, N10, N20, N100, e.t.c

iv. Coins are also legal tender. They are in small denominations of 1k, 2k, 10k e.t.c

v. Bank deposit: This is money in the current account of commercial banks. The money is withdrawable by cheque.

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