JAMB Economics Past Questions & Answers - Page 243

1,211.

The distinguishing characteristic between the money market and the capital market lies in whether the

A.

Securities are primary or secondary

B.

Debt instruments provided are long-term or short-term

C.

Funds mobilized are private or public

D.

Securities are in debentures or ordinary shares

Correct answer is B

No explanation has been provided for this answer.

1,212.

The elasticity of supply of perishable goods is

A.

Unitary

B.

Inelastic

C.

Zero

D.

Elastic

Correct answer is B

In case of perishable goods such as vegetables, fruits, and other eatables, the supply would be inelastic. This is because the supply of perishable goods cannot be increased or decreased easily.

1,213.

The term 'Near money' is best described as

A.

A financial instrument that is readily convertible to cash

B.

Government financial instrument that is convertible to cash

C.

Time deposits with low interest rates

D.

A financial asset that is convertible to cash

Correct answer is D

Near money refers to non-cash assets that are highly liquid and easily converted to cash. They are sometimes referred to as quasi-money or cash equivalents. Examples of near money are: Savings accounts held in commercial banks

1,214.

A country with over-valued currency will

A.

Expect balance of payments surplus

B.

Have increased demand for the exports

C.

Increase her foreign reserve

D.

Decrease her foreign reserve

Correct answer is A

No explanation has been provided for this answer.

1,215.

Imperfect market is characterized by

A.

Perfect mobility of factors of production

B.

Many buyers and few sellers

C.

A large number of buyers and sellers

D.

Non-preferential treatment

Correct answer is B

No explanation has been provided for this answer.