Money and Inflation - Jamb Economics Past Questions and Answers

Question 26:

• JAMB 1983

In an inflationary period which of the following statements is NOT true?

A. Wages rise simultaneously with prices
B. The purchasing power of money diminishes
C. More money runs after a limited quantity of goods
D. Money supply increases
E. Aggregate real demand exceeds aggregate real supply

Question 27:

• JAMB 1983

Money performs a number of functions, ONE of these functions makes is possible for any person to provide for old age?

A. Money is regarded as a medium of exchange
B. Measure for value
C. Unit of account
D. Store of value
E. Standard for deferred payments

Question 28:

• JAMB 1984

The most important characteristic of money is?

A. Portability
B. Intrisic value
C. Acceptability
D. Usefulness
E. Beauty

Question 29:

• JAMB 1984

Cost push inflation takes place due to?

A. The rapid increase in the demand for goods
B. An increase in productivity of the factors of production
C. A rise in the cost of production
D. A rise in the standard of living
E. The low wage rate of the workers

Question 30:

• JAMB 1984

Lord Keynes identified three motives for holding money, that is, keeping one’s resources in liquid form instead of in some form of investment. the motive which relates to making provision for the ‘rainy day’ is known as?

A. Speculative motive
B. Precautionary motive
C. Transactions motive
D. Investment motives
E. Rainy day motive