Economics Questions and Answers
Economics questions and answers to help you prepare for JAMB, WAEC, NECO, Post UTME and job aptitude tests or interviews.
Economics questions and answers to help you prepare for JAMB, WAEC, NECO, Post UTME and job aptitude tests or interviews.
If the Central Bank increases its bank rate
Many banks will shut down their operations
Customers will borrow more from banks
The supply of money may be reduced
Interest charges by banks will fall
Correct answer is C
A rise in the bank rate means that the interest charge from commercial banks will increase their interest which reduce the borrowing by general public and interest rate is high, so the money supply would decrease.
If inflation is anticipated, people may
Save more money
Spend more money
Give out more loans
Save less money
Correct answer is B
Anticipated inflation occurs when people know inflation is going to occur and prepare for it. For example, increased interest rates.
An example of commodity money is
Currency note
Mobile money
Cheques
Silver
Correct answer is D
Commodity money are money who has value has money and commodity e.g. gold, silver coin, diamond, cattle, bead etc.
Increasing national income without effective control of population size in a country can lead to
Higher per capita income
Increase in poverty
Increased outflow of aid
Underutilization of resources
Correct answer is D
An increase in national income without effective control of population size in a country can lead to the underlization of resources in a particular country.
An example of transfer payments in national income accounting is
Money transferred to another country
Unemployment allowance paid to the citizens
The amount paid to a worker on transfer
Transfer of funds from one bank to another
Correct answer is B
Transfer payment are payment of receipts not resulting from contribution to productive activities in the economy. They are mere transfers from one person to another, for example: pension, bursary, award, gift, unemployment benefit etc. When estimating or calculating national income, transfer payment are excluded.