Money and Inflation - Jamb Economics Past Questions and Answers

Question 66:

• JAMB 2000

A persistent rise in the general level of prices implies?

A. An increase in some prices
B. A one-time rise in prices
C. A steady fall in the purchasing power of money
D. That the higher the price level, the more the value of money

Question 67:

• JAMB 2001

Money may not be accepted as a store of value if?

A. Its value is unstable
B. It is easily transferable
C. Its value is stable
D. It is easily divisible

Question 68:

• 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 69:

• 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 70:

• 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