Jamb Economics 1986 Past Questions and Answers

Question 31:

• JAMB 1986

The Nigeria Bank for Commerce and Industry is?

A. A commercial Bank
B. A developmment bank
C. An industrial bank
D. A merchant bank

Question 32:

• JAMB 1986

To control inflation, the monetary authorities of a country can?

A. Reduce taxes
B. Advise government to increase its expenditure
C. Engage in expansive monetary policy
D. Engage inrestrictive monetary policy

Question 33:

• JAMB 1986

Which of the following is used by the Central Bank to control the rate of interest?

A. Bill of Exchange
B. Banker's order
C. Fixed deposit account
D. Open market operation

Question 34:

• JAMB 1986

Gresham's law in economics shows that

A. Bad money drives good money out of circulation
B. Good money drives bad money out of circulation
C. Gold must be available to maintain the value of paper money
D. The price level varies directly with the quality of money

Question 35:

• JAMB 1986

Given that the cash reserve ratio is 10 percent, what is the maximum amount of that the banking system can create from an initial cash deposit of N1,000.00?

A. N100.00
B. N1,000.00
C. N9,000.00
D. N10,000.00