2013 - JAMB Economics Past Questions and Answers - page 3

21
The speculative demand for money is inversely related to the
A
interest rate
B
level of income
C
exchange rate
D
inflation rate
correct option: a
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22
If Mr .K obtains a N50.000 loan from a bank for the purpose of providing household needs, the demand for money is said to be
A
transactionary
B
speculative
C
precautionary and speculative
D
transactional and speculative
correct option: a
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23
Which of the following is used by the Central Bank of Nigeria to control inflation?
A
Tariff on imports
B
Tax rate
C
Exchange rate
D
Discount rate
correct option: d
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24
If CBN reduces money supply, the interest rate will
A
fluctuate
B
rise
C
fall
D
remain unchanged
correct option: b
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25
A tax on land will ultimately fall
A
partly on agents and users
B
entirely on users
C
entirely on owners
D
partly on users and owners
correct option: c
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26
An example of an expansionary fiscal policy action is
A
decrease in the corporate profit tax rates
B
decrease in welfare payments
C
purchase of government securities
D
decrease in the bank rate
correct option: a
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27
One of the goals of development plans in Nigeria is to
A
increase the profitability of multinational businesses
B
improve the country's GDP
C
achieve higher standard of living for the citizens
D
deregulate the economy
correct option: c
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28
Life insurance companies contribute to economic development by holding a part of their assets in
A
long-term financial instruments
B
money market instruments
C
cash and near money
D
short-term financial instruments
correct option: c
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29
In order to add value to Nigeria agricultural produce, there is need to
A
cultivate high breed crops
B
process them into finished goods
C
adopt modern storage methods
D
advertise them in European markets
correct option: d
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30
The main reason for low agricultural produce in west Africa is need to
A
the presence of large-scale agro-allied industries
B
high dependency ratio
C
over dependence on agriculture for subsistence
D
the use of crude implements in farming process
correct option: d
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