Money and Inflation - Jamb Economics Past Questions and Answers

Question 16:

• JAMB 1979

The value of money is generally measured in reference to

A. The interest rate charged on bank loans
B. The general price level
C. The size of countries gold stock
D. The level of economic development in a country
E. The price of stocks and shareson the stock exchange

Question 17:

• JAMB 1979

Which is the most liquid of the following financial assets held by an individual?

A. Outstanding balance on the current account of a commercial bank
B. A credit balance on a savings account
C. A crossed postal order
D. An insurance policy
E. All of the above

Question 18:

• JAMB 1979

Inflation can be curbed by

A. Increasing aggregate demand
B. Paying higher wages
C. Increasing government expenditure
D. Reducing aggregate demand
E. A deficit budget

Question 19:

• JAMB 1980

The value of money depends primarily on?

A. The gold backing of the currency
B. The gold backing of both currency and deposit
C. The general price level
D. Government decree that it is legal tender
E. None of the above

Question 20:

• JAMB 1980

Which of the following is NOT a measure for controlling inflation?

A. Reduction in money supply
B. Wage restraint and wage freeze
C. Reduction in taxes and increase in government spending
D. Price control
E. Credit restriction