Money and Inflation - Jamb Economics Past Questions and Answers

Question 31:

• JAMB 1984

If a person demands money for buying and selling securities. It is referred as demanding money for

A. Transaction purposes
B. Speculative purposes
C. Precautionary purposes
D. Meeting the educational expenses of the children
E. Carrying out gambling activities

Question 32:

• JAMB 1985

The purchasing power of the naira will fall when?

A. The naira is devalued
B. Government cuts all salaries and wages
C. There is inflation
D. The colour of the naira is changed
E. Workers are retrenched

Question 33:

• JAMB 1985

Because money serves as a standard for deferred payments

A. It serves as a store of value
B. Goods can be bought on credit with pre-determined value
C. Future trade becomes possible
D. It serves as a unit of account
E. It becomes valuable

Question 34:

• JAMB 1986

To control inflation, the monetary authorities of a country can?

A. Reduce taxes
B. Advise government to increase its expenditure
C. Engage in expansive monetary policy
D. Engage inrestrictive monetary policy

Question 35:

• JAMB 1986

Gresham's law in economics shows that

A. Bad money drives good money out of circulation
B. Good money drives bad money out of circulation
C. Gold must be available to maintain the value of paper money
D. The price level varies directly with the quality of money