Jamb Economics 2002 Past Questions and Answers

Question 16:

• JAMB 2002

Liquidity preference refers to the?

A. Needs to borrow money for short periods to meet some temporary crises
B. Wish to hold more funds for precautionary purpose
C. Need to increase the money supply in order to lower the interest rate
D. Demand to hold money as assets rather than as stocks

Question 17:

• JAMB 2002

Creeping inflation implies that there is a?

A. Gentle and persistent increase in the general price level
B. Rapid and persistent increase in the general price level
C. Gentle but not permanent increase in the general price level
D. Rapid but not permanent increase in the general price level

Question 18:

• JAMB 2002

The primary objective of the NDIC is to?

A. Give protection to the CBN against fraud
B. Provide regulations guiding the finance houses
C. Give protection against fraud
D. Give protection to bank depositors

Question 19:

• JAMB 2002

Excess demand inflation can be controlled through?

A. Contractionary fiscal policy
B. Contractionary trade policy
C. Expansionary fiscal policy
D. Expansionary monetary policy

Question 20:

• JAMB 2002

The middlemen in the chain of distribution are?

A. Manufacturers and consumers
B. Wholesalers and retailers
C. Consumers and wholesalers
D. Retailers and consumers