JAMB Economics Past Questions & Answers - Page 282

1,406.

Which of the following is mostly used to determine the cost of living?

A.

Marginal changes in prices

B.

Consumer price index

C.

Prices of imported and exported commodities

D.

Producer price index

Correct answer is B

No explanation has been provided for this answer.

1,407.

Which of the following is the cheapest for the government in improving the welfare of its citizens?

A.

Subsidy

B.

Income supplement

C.

Donation to specific projects

D.

Wages increase

Correct answer is C

No explanation has been provided for this answer.

1,408.

One method through which the Central Bank can restrict the commercial banks' power of credit expansion is to

A.

Demand for increased special deposit

B.

Decrease the cash ratio

C.

Buy securities in the open market

D.

Reduce the rate of interests at which banks borrow from it

Correct answer is A

No explanation has been provided for this answer.

1,409.

A bank is said to be distressed when it

A.

Is unable to deal with the Central Bank

B.

Has a low level of capital base

C.

Has low level of deposits

D.

Experiences serious liquidity crisis

Correct answer is D

No explanation has been provided for this answer.

1,410.

The best method to curb inflation in Nigeria is to

A.

Reduce importation of commodities

B.

Increase the general level of production

C.

Reduce the volume of money supply

D.

Set up price control boards

Correct answer is B

No explanation has been provided for this answer.