Post Utme Economics Past Questions and Answers

Question 56:

A decrease in aggregate spending in an economy will ultimately lead to ____________

A. Boom
B. B Deflation
C. Inflation
D. Recession
E. Stagnation

Question 57:

Money serves well as a store of value in an environment devoid of ____________

A. Unemployment
B. Bank robbery
C. Development-oriented central/reserve bank
D. Inflationary pressure
E. Substitutes like ATMs, cheques and bank draft

Question 58:

The ability of deposit money banks to create money is mainly affected by

A. Reserve ratio
B. Liquidity ratio
C. Capital base
D. Monetary policy rate
E. All of the above

Question 59:

A document that shows the details of government revenue and expenditure in a year is called ____________

A. Budget
B. Development plan
C. Rolling plan
D. Perspective plan
E. Financial plan

Question 60:

The basic fiscal relation that exists among the three tiers of government in Nigeria is ____________

A. National budget appropriation
B. State-Local Government joint account
C. Revenue allocation from the federation account
D. Federal road projects
E. Federal character principle