Money and Inflation - Jamb Economics Past Questions and Answers

Question 51:

• JAMB 1994

An increase in both the legal reserve ratio and discount rate has the effect of?

A. Increasing the quantity of money in circulation
B. Decreasing the quantity of money in circulation
C. Increasing the value of money
D. Decreasing the value of money

Question 52:

• JAMB 1994

Inflation n the Nigeria economy may be fueled by increase in?

A. The dollar price of crude oil
B. The sale of company shares
C. Government expenditure
D. Sale of government bonds

Question 53:

• JAMB 1994

Gresham's law in Economics shows that?

A. Good drives out bad money
B. Bad money drives out good money
C. The value of money varies inversely with the price level
D. Gold must be available to maintain the price of paper money

Question 54:

• JAMB 1995

The best method to curb inflation in Nigeria is to

A. Reduce importation of commodities
B. Increase the general level of production
C. Reduce the volume ofmoney supply
D. Set up price control boards

Question 55:

• JAMB 1997

The most important attribute of money is?

A. Homogeneity
B. Relative scarcity
C. Divisibility
D. General acceptability