Financial Institutions - Jamb Economics Past Questions and Answers

Question 111:

• JAMB 2012

Long-term funds for investment projects are sourced from the

A. Money market
B. Commodity market
C. Foreign exchange market
D. Capital market

Question 112:

• JAMB 2013

Which of the following is used by the Central Bank of Nigeria to control inflation?

A. Tariff on imports
B. Tax rate
C. Exchange rate
D. Discount rate

Question 113:

• JAMB 2013

If CBN reduces money supply, the interest rate will

A. Fluctuate
B. Rise
C. Fall
D. Remain unchanged

Question 114:

• JAMB 2013

Life insurance companies contribute to economic development by holding a part of their assets in

A. Long-term financial instruments
B. Money market instruments
C. Cash and near money
D. Short-term financial instruments

Question 115:

• JAMB 2013

A measure for preventing the external value of the naira from falling is for the government to

A. Increase its spending with foreign reserve
B. Sell its own currency
C. Reduce interest rate
D. Buy its currency with foreign reserve