Monetary policy and its instruments - Jamb Economics Past Questions and Answers

Question 11:

• JAMB 2008

If the required reserves of a bank is 20% and N10 000 is paid into its demand deposit account, what is the excess reserves?

A. N2000
B. N18 000
C. N12 000
D. N8 000

Question 12:

• JAMB 2008

Contractionary monetary policy is used to

A. Control inflation
B. Bridge the deflationary gap
C. Expand the output level
D. Deregulate the economy

Question 13:

• 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