JAMB Commerce past questions and answers

Checked by the Skolra question team · Last updated 15 October 2026

JAMB Commerce: 478 past questions from 7 papers between 2019 and 2025, each with the answer and an explanation. In the UTME you answer 40 Commerce questions, with Use of English and two other subjects, in 2 hours. Here are ten.

1. 1.

   The growth of commerce is not enhanced by

   1. A
      Efficient transportation network
   2. B
      Effective communication systems
   3. C
      Reliable banking services
   4. D
      Hoarding of goods
      Correct
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   Answer: D

   Transportation, banking, and communication all facilitate trade and the movement of goods. Hoarding restricts the free flow of goods in the market, disrupting supply and hindering rather than enhancing commerce.

2. 2.

   A distinctive advantage of GSM is its

   1. A
      Mobility and portability
      Correct
   2. B
      Wider network coverage than landlines
   3. C
      Lower cost of calls
   4. D
      Clearer voice quality
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   Answer: A

   The distinctive advantage of GSM (Global System for Mobile Communications) over fixed landlines is mobility and portability — the handset can be carried and used virtually anywhere within network coverage, untethered from a fixed location.

3. 3.

   Branding is the assigning of trade marks to goods for the purpose of......... by the public.

   1. A
      classification
   2. B
      valuation
   3. C
      standardization
   4. D
      identification
      Correct
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   Answer: D

   Branding through trademarks allows the public to identify and distinguish goods from those of competitors.
4. 4.

   The last link in a channel of distribution is the

   1. A
      Consumer
      Correct
   2. B
      Retailer
   3. C
      Wholesaler
   4. D
      Agent
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   Answer: A

   The channel of distribution ends with the consumer, who is the final recipient and user of the goods. The typical chain runs from producer to wholesaler to retailer and ultimately to the consumer, who purchases goods for personal use and not for resale.

5. 5.

   Chibuzor agreed to make a dress for Hauwa with September 20, 1995 as the delivery date, if the dress was not ready on that date, Hauwa could

   1. A
      Pay a penalty fee to Chibuzor
   2. B
      Accept delivery on any date Chibuzor chooses
   3. C
      Sue Chibuzor for breach of contract
      Correct
   4. D
      Forfeit the cost of the materials
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   Answer: C

   Since a valid contract existed with September 20, 1995 as the agreed delivery date, failure to deliver on that date constitutes a breach of contract. Hauwa is therefore entitled to sue for breach of contract or rescind (cancel) the contract and claim damages.

6. 6.

   Which of the following is most appropriate for a "Cash with Order" terms of sale?

   1. A
      Goods sold through hire purchase agreements
   2. B
      Bulk purchases from trusted local suppliers
   3. C
      Sales to established customers on credit
   4. D
      Mail order and purchases by first-time buyers
      Correct
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   Answer: D

   Under "Cash with Order" terms, the buyer pays in full when placing the order. This is most suitable for mail order transactions and dealings with new or unknown customers where the seller has no basis for extending credit.

7. 7.

   Which of these is a document used in International trade?

   1. A
      Bill of lading
      Correct
   2. B
      Ordinary cheque
   3. C
      Pay slip
   4. D
      Delivery note
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   Answer: A

   A bill of lading is a legal document issued by a carrier to a shipper in international trade that serves as a receipt for cargo, a contract of carriage, and a document of title to the goods being transported, making it a key international trade document.

8. 8.

   A typical example of an event covered by an Assurance Policy is

   1. A
      fire
   2. B
      death
      Correct
   3. C
      accident
   4. D
      theft
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   Answer: B

   Life assurance typically covers death as the main event, which is certain to occur. Other events are covered by insurance (uncertain events).
9. 9.

   The payment made periodically in respect of an insurance policy entered into is known as

   1. A
      Claim
   2. B
      Bonus
   3. C
      Dividend
   4. D
      Premium
      Correct
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   Answer: D

   The periodic payment made by an insured person to the insurance company to keep an insurance policy in force is called a premium. It is the price paid for the insurance coverage and is usually paid monthly, quarterly, or annually.

10. 10.

    Charges for loans paid by commercial banks to the Central Bank of Nigeria are called

    1. A
       Base rate
    2. B
       Refinancing rate
       Correct
    3. C
       Prime lending rate
    4. D
       Discount rate
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    Answer: B

    Charges for loans commercial banks pay to the Central Bank are called the refinancing rate - the interest banks pay when borrowing from the central bank.

The questions come from past JAMB, WAEC and NECO papers. We use software to help write the answer options and explanations, and every answer is checked twice before it goes on the site. How we check

Spotted a wrong answer? Tell us from the app or on the contact page and we check it.

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