Demand for money and the supply of money - Jamb Economics Past Questions and Answers

Question 11:

• JAMB 1992

The best way to reduce the supply of money in the economy is to?

A. Increase the liquidity ratio
B. Increase the number of bank-notes and cheques produced
C. Decrease treasury bills
D. Liberalize access to credit

Question 12:

• JAMB 1992

The total amount of money in circulation includes cash?

A. And current account
B. Owned by banks and the non-bank public
C. And current acount balances owned by banks and non-bank public
D. Owned by banks, the government and the non-bank public

Question 13:

• 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 14:

• JAMB 1999

People hold money for?

A. Charity
B. Safe keeping
C. Profit making
D. Speculative purposes

Question 15:

• JAMB 2000

An increase in money supply, other things being equal, will?

A. Lower interest rates
B. Reduce income
C. Ensure trade balance
D. Increase money demand