Jamb Economics 1986 Past Questions and Answers

Question 36:

• JAMB 1986

The most important economic characteristic differentiating commercial banks from other financial institutions is their?

A. Function as a safe and profitable store place for savings
B. Role in financing balance of payment deficits
C. Status as an intermediary between savers and borrowers
D. Ability to create and destory money

Question 37:

• JAMB 1986

Deflation is a persistent fall in the general price level and is usually caused by?

A. A reduction in total demand
B. An increase in government spending
C. An increase in the money supply
D. An increase in aggregate demand

Question 38:

• JAMB 1986

Which of the following causes of inflation is related to demand-pull inflation?

A. Low productivity on farms and in firms
B. Poor storage facilities
C. Poor distribution system
D. Increase in expenditure on construction

Question 39:

• JAMB 1986

Which of the following is NOT a goal of modern budgets?

A. The control of inflation
B. The reduction in income inequality
C. The shift of all resources from the private to the public sector
D. Economic development

Question 40:

• JAMB 1986

The best technical description of a progressive tax is a?

A. Tax which takes more money from the rich than from the poor
B. More equitable tax than aggressive one
C. Tax which takes a higher proportion of extra naira received as income rises
D. Tax which falls directly on those in the high income brackets