Money and Inflation - Jamb Economics Past Questions and Answers

Question 56:

• JAMB 1997

Which of the following is inflationary?

A. An increase in taxation
B. An increase in savings
C. A decrease in money supply
D. An increase in government expenditure

Question 57:

• JAMB 1998

Which of the following is true about the value of money?

A. It varies inversely with the price level
B. It varies directly with the price level
C. It depreciates in the period of deflation
D. It is not affected by the price level

Question 58:

• JAMB 1998

An issue of bank-notes not backed by gold but by government securities is known as?

A. Fiduciary isssue
B. Guaranteed money
C. Seignior age
D. Legal tender

Question 59:

• JAMB 1998

If a government wants to reduce the level of inflation, it will?

A. Run a budget surplus
B. Run a budget deficit
C. Run a balanced budget
D. Borrow more money

Question 60:

• JAMB 1999

Inflation which is caused mainly increases in the prices of factors of production is described as?

A. Cost-push inflation
B. Demand-pull inflation
C. Crawling inflation
D. Spiral inflation