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

Question 16:

• 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 17:

• JAMB 2008

The theoretical relationship between money supply and prices is weakened by changes in the

A. Money supply
B. General price level
C. Velocity of money
D. Interest rate

Question 18:

• JAMB 2013

If Mr .K obtains a N50.000 loan from a bank for the purpose of providing household needs, the demand for money is said to be

A. Transactionary
B. Speculative
C. Precautionary and speculative
D. Transactional and speculative