Jamb Economics 1991 Past Questions and Answers

Question 26:

• JAMB 1991

One of the functions of Development Banks is to

A. Mint money for the development of the economy
B. Provide short-term loans to commercial banks
C. Provide medium and long-term finance for the development of the banking system
D. Provide medium and long-term finance for the development of the economy

Question 27:

• JAMB 1991

To perform its function as a store of wealth and standard for deferred payment, money must be

A. Portable
B. In attractive form
C. Stable in value
D. Spent more on capital goods than on consumer goods

Question 28:

• JAMB 1991

Fiduciary issue is that part of?

A. The issue of notes backed entirely by gold
B. A country's currency which is not negotiable
C. The issue of notes not backed by gold
D. A country's currency officially issued

Question 29:

• JAMB 1991

An effect of inflation is that it?

A. Discourages trade by barter
B. Favours debtors at the expense of creditors
C. Increases the real income of salary earners
D. Increases the value of a country's exports

Question 30:

• JAMB 1991

Banks aid economic expansion and development by?

A. Being very strict in lending policies
B. Mobilizing savings for investment lending
C. Paying interest on deposit accounts
D. Charging high interest on loans