JAMB Economics Past Questions & Answers - Page 163

811.

One of the challenges facing the banking industry in Nigeria is

A.

Ensuring technological security

B.

Providing employment

C.

Providing loans for investment

D.

Creating more money

Correct answer is C

Some challenges faced by nigerian banks;

  • Weak capital base. 
  • Ethics and professionalism.
  • Poor corporate governance practices. 
  • Reliance on public sector funds. 
  • Slow GDP growth.

812.

An inflation that co-exists with high rate of unemployment is

A.

Hyperinflation

B.

Stagflation

C.

Demand-pull inflation

D.

Cost-push inflation

Correct answer is B

Stagflation is a condition of slow economic growth and relatively high unemployment, or economic stagnation, accompanied by rising prices, or inflation. It can also be defined as inflation and a decline in gross domestic product (GDP).

813.

The precautionary demand for money is determined by

A.

The rate of interest

B.

The level of savings

C.

The level of income

D.

General price level

Correct answer is A

The precautionary demand is dependent on the size of income, the availability of credit, and the rate of interest.

814.

If MPC = 2/3 and investment is N100 million, the level of national income is

A.

N100 million

B.

N10 million

C.

N303 million

D.

N300 million

Correct answer is D

No explanation has been provided for this answer.

815.

Which of the following can be used to measure the Gross National product in an open economy?

A.

C+I+G+(X+M)

B.

C+I+G+X

C.

C+I+G

D.

C+I+G+(X-M)

Correct answer is D

The formula to calculate the components of GNP is Y = C + I + G + X + Z. That stands for 

GNP = Consumption + Investment + Government + X (net exports, or imports - exports) - Z (net income earned by domestic residents from overseas investments - net income earned by foreign residents from domestic investments.)