The value of money and the price level - Jamb Economics Past Questions and Answers

Question 1:

• 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 2:

• 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 3:

• 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 4:

• 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 5:

• JAMB 1988

In any economy, what is used as money is determined by?

A. Government acceptance commodity standard
B. Government acceptance of an inconvertible paper standard
C. Laws and customs
D. Its use as a store of value