2020 - JAMB Economics Past Questions and Answers - page 4

Tax avoidance involves using legal methods to minimize one's tax obligations. This is different from tax evasion, which is illegal. Tax relief and exemption are specific types of tax benefits but don't encompass the broad concept of using legal means to reduce tax liability.

The Central Bank of Nigeria (CBN) employs various monetary policy tools to control the money supply and influence economic activity. Selective credit control is one such technique. * **Selective credit control** involves the CBN directing credit towards or away from specific sectors of the economy. This can be achieved by setting credit ceilings, varying interest rates, or imposing stricter loan requirements for certain industries. The other options are not direct monetary control techniques: * **Budget deficit** is a fiscal policy tool, related to government spending and revenue. * **Foreign exchange control** is a tool to manage the country's currency exchange rates. * **Monitoring the general price level** is an objective of monetary policy, not a technique used to achieve it.