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Inflation In Nigeria - SS2 Economics Past Questions and Answers - page 1

1

What is the major cause of inflation in Nigeria?

A

Poor infrastructure

 

B

High cost of production

C

Excessive printing of money by the government

correct option: c
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2

What are the effects of inflation in Nigeria?

A

Reducing the purchasing power of money

 

B

Lowering the standard of living

C

All of the above

correct option: c

(Inflation in Nigeria has the effects of reducing the purchasing power of money and lowering the standard of living of Nigerians)

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3

Which of the following is a policy implemented by the CBN to combat inflation in Nigeria?

A

Reducing interest rates

B

Increasing the money supply

 

C

Encouraging investment in the production sector

correct option: c

(To combat inflation, the Central Bank of Nigeria (CBN) implements policies such as encouraging investment in the production sector)

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4

What is the role of the Nigerian government in combating inflation?

A

Developing infrastructure

 

B

Encouraging investment in the production sector

C

Both a and b

correct option: c
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5

What is the Central Bank of Nigeria (CBN) doing to combat inflation in Nigeria?

The CBN implements policies such as increasing interest rates, reducing the money supply, and encouraging investment in the production sector to combat inflation in Nigeria.

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