Jamb Economics 2010 Past Questions and Answers

Question 26:

• JAMB 2010

A decrease in aggregate spending in an economy will ultimately lead to

A. Boom
B. Inflation
C. Deflation
D. Recession

Question 27:

• JAMB 2010

If MPC is 0.7 while government expenditure increased by N 150m, the equilibrium national income is

A. N 214 million
B. N 45 million
C. N 105 million
D. N 500 million

Question 28:

• JAMB 2010

The function of money which makes division of labour possible is its

A. Unit of account
B. Store of value
C. Medium of exchange
D. Standard of deferred payment

Question 29:

• JAMB 2010

By buying treasury bills, the Central Bank of Nigeria intends to

A. Increase money supply in the economy
B. Reduce the cash reserve ratio for banks
C. Reduce money supply in the economy
D. Increase the capital base of commercial banks

Question 30:

• JAMB 2010

One of the functions of commercial banks is

A. Maintaining stable price in the economy
B. Regulating monetary policies
C. Granting loans to customers
D. Issuing bank notes and coins