Waec Economics 2001 Past Questions and Answers

Question 31:

• WAEC 2001

The quantity theory of money states that a reduction in the quantity of money in circulation would bring about

A. A geometrical fall in prices
B. A proportionate fall in prices
C. A rise in prices
D. An unequal fall in prices

Question 32:

• WAEC 2001

which of the following is the most liquid asset?

A. Bank notes
B. Silver
C. Bank deposit
D. Cheques

Question 33:

• WAEC 2001

The situation in which there is persistent fall in the general price level is referred to as

A. Devaluation
B. Depreciation
C. Deflation
D. Inflation

Question 34:

• WAEC 2001

commercial banks settle their daily interbank indebtedness through the

A. Money market
B. Finance House
C. Acceptance house
D. Clearing House

Question 35:

• WAEC 2001

One disadvantage of inflation is that?

A. Fixed income earners gain
B. Fixed income eaners lose
C. Businessmen lose
D. Standard of living rises