JAMB Economics Past Questions & Answers - Page 250

1,246.

The capital market is a market for trading of financial assets such as

A.

Banker's acceptances

B.

Treasury bills

C.

Long-term securities

D.

Commercial papers

Correct answer is C

No explanation has been provided for this answer.

1,247.

The price paid for labour services is the

A.

Commission rate

B.

Wages rate

C.

Income rate

D.

Salary rate

Correct answer is B

No explanation has been provided for this answer.

1,248.

A tax that increases at a higher percentage as income increase is called

A.

A proportion tax

B.

A regressive tax

C.

A progressive tax

D.

An income tax

Correct answer is C

No explanation has been provided for this answer.

1,249.

The raising of funds by selling stocks to the public is called

A.

Equity financing

B.

Stock financing

C.

Debt financing

D.

Loan financing

Correct answer is A

Stocks are sometimes called equity because the buyer of the stock has part ownership of the company (that initially issued the stock). When a corporation sells stock it is selling an ownership interest in the corporation and raising funds for investment in plant and equipment (for example an initial public offering).

1,250.

An industry is

A.

Company producing unrelated commodities

B.

Group of firms producing related commodities

C.

Group of firms producing distinct commodities

D.

Firms producing differentiated commodities

Correct answer is B

No explanation has been provided for this answer.