The value of money and the price level - Jamb Economics Past Questions and Answers

Question 6:

• JAMB 1988

The rate at which money changes hands is known as the?

A. Rate of inflation
B. Velocity of transactions
C. Velocity of money
D. Velocity of circulation

Question 7:

• JAMB 1989

A major factor affecting the value of money is the?

A. Price level
B. Banking habit
C. Transaction motive
D. Divisible nature of money

Question 8:

• JAMB 1993

Below equilibrium, the gap between aggregate demand and the full employment level of income is called the?

A. Inflationary gap
B. Income gap
C. Unemployment gap
D. Deflationary gap

Question 9:

• 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 10:

• JAMB 1999

The relationship between the value of money and the price level is?

A. Direct
B. Unpredictable
C. Diverse
D. Inverse