JAMB Commerce 2021 past questions

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

Ten questions from the 2021 JAMB Commerce paper, with answers and explanations. We hold 40 questions from this paper, and the Skolra app has all of them.

JAMB Commerce 2021 questions and answers

1. 1.

   A form of money that has gone out of use is

   1. A
      Legal tender
   2. B
      Commodity money
      Correct
   3. C
      Fiat money
   4. D
      Token money
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   Answer: B

   Commodity money is a form of money that has gone out of use. It refers to items that had intrinsic value and were used as money (e.g., cowrie shells, iron bars, gold, salt). Unlike modern money, its value came from the commodity itself. Token money and fiat money are still in use today.

2. 2.

   A form of money with face value which is greater than the value of the metal contents is

   1. A
      Credit money
   2. B
      Legal tender
   3. C
      Commodity money
   4. D
      Token money
      Correct
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   Answer: D

   Token money is a form of money whose face value (the value printed or assigned) is greater than the intrinsic or metal value of the coin itself. Most modern coins are token money. This contrasts with commodity money, where the object's intrinsic value equals its monetary value.

3. 3.

   An activity that involves derivation of raw materials from land and sea is

   1. A
      Manufacturing industry
   2. B
      Construction industry
   3. C
      Extractive industry
      Correct
   4. D
      Service industry
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   Answer: C

   The extractive industry (also called primary industry) involves obtaining raw materials directly from the earth and sea, including mining, quarrying, farming, fishing, and forestry. It does not process or transform materials — that is manufacturing.

4. 4.

   Given:
   I. Retail
   II. Export
   III. Transport
   IV. Import
   V. Insurance
   VI. Banking and finance
   VII. Wholesale
   VIII. Communication.

   Which of the above are aids to trade?

   1. A
      II, III, IV and V
   2. B
      III, V, VI and VIII
      Correct
   3. C
      I, II, IV and VII
   4. D
      I, III, V and VII
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   Answer: B

   Aids to trade are activities that facilitate or support trade. From the list, III (Transport), V (Insurance), VI (Banking and finance), and VIII (Communication) are aids to trade. Retail (I), Wholesale (VII), Export (II), and Import (IV) are branches of trade, not aids.

5. 5.

   The best mode of ensuring that items posted get to the named addresses is through

   1. A
      Parcel post
   2. B
      Ordinary post
   3. C
      Express mail
   4. D
      Registered post
      Correct
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   Answer: D

   Registered post (registered mail) provides a tracking number and requires the recipient to sign on delivery, thereby ensuring that the item reaches only the named addressee. It offers proof of posting and proof of delivery.

6. 6.

   The activities aimed at finding customers needs and satisfaction can be described as

   1. A
      Selling
   2. B
      Advertising
   3. C
      Marketing
      Correct
   4. D
      Distribution
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   Answer: C

   Marketing encompasses all activities aimed at identifying and satisfying customer needs and wants profitably. It goes beyond selling to include market research, product development, pricing, promotion, and distribution, all centered on meeting customer needs.

7. 7.

   The major objective of corporate mergers is to?

   1. A
      Achieve economies of scale
      Correct
   2. B
      Comply with government regulations
   3. C
      Reduce the workforce of the companies
   4. D
      Increase government tax revenue
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   Answer: A

   The major objective of corporate mergers is to achieve economies of scale — reducing costs per unit by increasing production volume. Mergers also aim to eliminate competition, increase market share, pool resources, and strengthen competitive advantage in the marketplace.

8. 8.

   Communication process involves the transmission of a message over a selected channel to the

   1. A
      Channel
   2. B
      Receiver
      Correct
   3. C
      Message
   4. D
      Sender
   Show answerHide answer

   Answer: B

   The communication process begins with the sender who encodes a message, transmits it through a selected channel, and the process ends when the message reaches the receiver (recipient). The receiver decodes the message to derive meaning.

9. 9.

   When two or more companies agree to execute a project too large for one to handle, this is referred to as

   1. A
      Holding company
   2. B
      Merger
   3. C
      Consortium
      Correct
   4. D
      Amalgamation
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   Answer: C

   A consortium (also called a joint venture) is a temporary combination of two or more independent companies that pool resources to execute a project too large or complex for any single company to undertake alone.

10. 10.

    The excess of the assets over the liabilities of a business is called

    1. A
       Profit
    2. B
       Revenue
    3. C
       Liability
    4. D
       Capital
       Correct
    Show answerHide answer

    Answer: D

    The excess of a business's total assets over its total liabilities is called capital (also known as net worth or owner's equity). It represents what the owner of the business actually owns after all debts are settled.

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.

Practise all 40 questions we hold from the 2021 paper, on a timed CBT screen

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