JAMB Economics Past Questions & Answers - Page 317

1,581.

The objective of public finance is to promote

A.

Full employment, national income and price stability

B.

Government revenue drive and expenditure to as high a level as possible

C.

The expansion of government social services

D.

Government revenue drive and minimize government expenditure

Correct answer is A

No explanation has been provided for this answer.

1,582.

When interest rates are high and still rising the least-cost method used by public limited companies to obtain additional funds for their operations is by

A.

Obtaining life-term loans from merchant banks

B.

Obtain short-term loans from commercial banks

C.

Selling floating-rate debenture stocks to the general public

D.

Selling new ordinary shares to the general public

Correct answer is D

No explanation has been provided for this answer.

1,583.

To reduce the high rate of inflation in the economy, the government should

A.

Increase taxes and have a budget surplus

B.

Increase taxes and have a budget defilicit

C.

Decrease taxes and have a budget defilicit

D.

Decrease taxes and have a balance budget

Correct answer is A

No explanation has been provided for this answer.

1,584.

The total amount of money in circulation includes cash

A.

And current account

B.

Owned by banks and the non-bank public

C.

And current acount balances owned by banks and non-bank public

D.

Owned by banks, the government and the non-bank public

Correct answer is C

No explanation has been provided for this answer.

1,585.

The best way to reduce the supply of money in the economy is to

A.

Increase the liquidity ratio

B.

Increase the number of bank-notes and cheques produced

C.

Decrease treasury bills

D.

Liberalize access to credit

Correct answer is A

No explanation has been provided for this answer.