1990 - JAMB Economics Past Questions and Answers - page 3
21
Which of the following is likely to be inflationary?
A
Tax increase
B
increase in unemployment
C
Budget surplus
D
Wages increase
correct option: d
Users' Answers & Comments22
The basic purpose of imposing legal reserve requirements on commercial bank is to?
A
assure the profitability of commercial banks
B
provide a device through which credit creation by banks can be controlled
C
provide a proper ratio between earning and non-earning bank assets
D
provide the Central Bank with working capital
correct option: b
Users' Answers & Comments23
Find the total credit that the banking system can create if primary deposit is just N100.00 while the cash ratio is 20%
A
700.00
B
600.00
C
500.00
D
400.00
correct option: c
Users' Answers & Comments24
Which of the following is a liability of a commercial bank?
A
Deposits in bank
B
loans made by the bank to individuals
C
loans made by the bank to other banks
D
Bonds purchased by the bank
correct option: a
Users' Answers & Comments25
A tax on a commodity whose supply is perfectly inelastic is?
A
shifted completely on the consumer
B
completely borne by the supplier
C
dividend in the ratio 60;40 between the consumer and the supplier
D
divided half-and-half between the producer and the consumer
correct option: b
Users' Answers & Comments26
Under a system of freely floating exchange rates an increase in the international value of a country's currency will cause?
A
its exports to rise
B
its imports to rise
C
gold to flow into that country
D
its currency to be in surplus
correct option: b
Users' Answers & Comments27
Balance of trade is the difference between?
A
exports and imports of goods and services
B
capital inflows and capital outflows
C
visible and invisible balances
D
exports and imports of goods
correct option: d
Users' Answers & Comments28
Which of the following is likely to reduce a surplus in the balance of payments of a country?
A
Devaluation
B
Increased tariff on imports
C
Export promotion
D
Currency appreciation
correct option: d
Users' Answers & Comments29
Which of the following is a tariff?
A
Limit on the amount of goods which can be imported
B
Inteest rate on foreign loans
C
Government payment to domestic producers for exports
D
Tax on imported goods
correct option: d
Users' Answers & Comments30
Import duties will increase total expenditure on imports if the demand for imports is?
A
elastic
B
inelastic
C
infinitely elastic
D
derived
correct option: b
Users' Answers & Comments