Jamb Economics 2008 Past Questions and Answers

Question 21:

• JAMB 2008

The theoretical relationship between money supply and prices is weakened by changes in the

A. Money supply
B. General price level
C. Velocity of money
D. Interest rate

Question 22:

• JAMB 2008

The high rate of inflation in Nigeria can be attributed to

A. Increasing cost of production
B. The appreciation of the naira
C. Decreasing cost of production
D. High capacity utilization

Question 23:

• JAMB 2008

If the required reserves of a bank is 20% and N10 000 is paid into its demand deposit account, what is the excess reserves?

A. N2000
B. N18 000
C. N12 000
D. N8 000

Question 24:

• JAMB 2008

Contractionary monetary policy is used to

A. Control inflation
B. Bridge the deflationary gap
C. Expand the output level
D. Deregulate the economy

Question 25:

• JAMB 2008

The use of government revenue and expenditure to achieve set objectives is known as

A. Budget
B. Fiscal policy
C. Revenue allocation
D. Monetary policy