The quantity supplied is infinitely elastic
When price is zero, the quantity supplied infinite
When price is infinite, the quantity supplied zero
The quantity supplied is definite
Correct answer is A
No explanation has been provided for this answer.
Which of the following is used by the Central Bank of Nigeria to control inflation?
Tariff on imports
Tax rate
Exchange rate
Discount rate
Correct answer is D
Discount rate is the minimum interest rate set by the central bank of a country. It is used in controlling inflation. We all know inflation is an economic situation where the value of money falls and causes a rise in the general price level. Inflation occurs when there is excess money in circulation. This means that, much money will be used to purchase few goods.
The central bank uses discount rates to control inflation by taking out the excess money in circulation. They do this by increasing interest rates to encourage people to save or invest and discourage borrowings. By saving and investment, the excess money in the economy is taken out. For instance, if interest rates are set at 20%, people would prefer to save or invest their monies so as to get a high return on investment rather than borrowing from the banks and pay high interest rates.
Transactionary
Speculative
Precautionary and speculative
Transacttional and speculative
Correct answer is A
The transactionary motive of money is when people hold money for the purpose of meeting their daily needs and wants. It is simply the desire to hold money in order to finance transactions.
X = 20, Y = 6
X = 38, Y =9
X = 46, Y = 9
X = 46, Y = 14
X = 10, Y = 10
Correct answer is C
No explanation has been provided for this answer.
The speculative demand for money is inversely related to the
Interest rate
Level of income
Exchange rate
Inflation rate
Correct answer is A
The speculative demand for money is simply a need for money for investment purposes, which is indirectly influenced by interest rates. When the rates of interest is high, people would most likely want to invest their money so as to get a high return on investment.
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