Correct Answer: C. barter trade

Correct Answer: B. organizational chart

Correct Answer: B. liquidity ratio

Correct Answer: C. satellite

Explanation

(a) The situation is referred to as an unfavourable/adverse/deficit balance of payment.

(b) Measures to correct an unfavourable balance of payment:

i. Restricting imports: if imports are more than exports, the country should restrict imports to reduce its citizens demand imported goods and services. Such restrictions may take the form of a total ban, quotas, and increased import duties.

ii. Increasing exports: A country may resort to measures that would encourage its citizens to produce for export whereby its earnings from exports would be used to offset its import bills

iii. Exchange control: The government of a country may introduce measures that would regulate the amount of foreign exchange available for importers.

iv. Devaluation: A country may reduce the official rate of exchange of its currency with other countries. The effect of this is to make exports cheaper and imports expensive, thus increasing the demand for her exports.

v. Borrowing: A country may borrow to solve its balance of payment problems. Such loans should go to finance home production for export

vi. Sale of gold reserves/foreign investment: A country may sell part of its gold reserves as well as other securities so as to finance its balance of payments.

vii. Gift or aid: A country may seek assistance from friendly countries and donor agencies to correct its adverse balance of payments.

viii. Drawing on foreign reserves: A country can make drawings on its external reserves to solve its balance of payment problems

ix. Import substitution: A country may encourage domestiC producers to produce close substitutes imported products to discourage importation of such goods.

Correct Answer: C. proximate cause

Explanation

(a) The cooperative society to be formed is a Thrift and Credit Society.

(b) Features of a thrift and credit society:

i. There is continuity, which means that the death of a member will not bring society to an end.

ii. Members are entitled to one vote each irrespective of the number of shares owned.

iii. The liability is limited to the shares held by the members.

iv. Profit is shared among members based on patronage.

v. The objective of the society is to generate funds which Would be given as loans to members.

vi. The management of the society is by a committee of elected members.

vii. Capital is raised from members' contributions.

(c) Advantages of thrift and credit society:

i. Society encourages saving habits among members.

ii. Members of the society have equal powers as all are entitled to one vote each during decision making.

iii. It enables members to have access to funds that could be difficult to obtain from Omer financial institutions.

iv. The death of any member cannot bring society to an end. It has continuity.

v. It improves members' standard of living as commodities such as cars, furniture, and housing are made available to members on credit.

vi. Members benefit from training and seminars which are organized by the society

vii. It grants loans to members.

Disadvantages of thrift and credit society:

i. There is usually difficulty in recovering loans which may hinder the operations of the society.

ii. Mismanagement/embezzlement of funds by elected members may lead to the collapse of society.

iii. There is great reliance on the contributions of members as well as repayment of loans.

iv. Some committee members lack management and technical skills to run the society, thereby leading to the collapse of the society.

Correct Answer: C. dishonored cheque

Correct Answer: B. current assets

Correct Answer: A. condition sale contract