Post Utme Economics Past Questions and Answers

Question 161:

The money market is a financial market that specializes in the provision of ____________

A. Short-term loans and advances
B. Medium-term loans
C. Long-term loans
D. Venture capital for development projects

Question 162:

There is an improvement in the terms of trade of a country if ____________

A. A large quantity of exports is given to obtain a unit of imports
B. The volume of exports is greater than the volume of imports
C. A small quantity of exports is given up to obtain a unit of imports
D. The value of exports is greater than the value of imports

Question 163:

A country with over-valued currency will ____________

A. Decrease her foreign reserve
B. Have increased demand for her exports
C. Increase her foreign reserve
D. Expect balance of payments surplus

Question 164:

In an agricultural economy, a poor harvest which diverts demand away from industrial goods leads to trade cycle by ____________

A. Leading to an increase in labour/capital ratio
B. Leading to constant labour/capital ratio
C. Leading to increased capital investment
D. Leading to an increase in capital/output ratio

Question 165:

Suppose that the equilibrium price of an article is # 500 but the government fixes the price by law at # 400, the supply will be ____________

A. The same as the equilibrium supply
B. Greater than the equilibrium supply
C. Less than the equilibrium supply
D. Determined later by the government
E. None of the above