JAMB Economics Past Questions & Answers - Page 327

1,631.

One of the functions of Development Banks is to

A.

Mint money for the development of the economy

B.

Provide short-term loans to commercial banks

C.

Provide medium and long-term finance for the development of the banking system

D.

Provide medium and long-term finance for the development of the economy

Correct answer is D

No explanation has been provided for this answer.

1,632.

One disadvantage of trade by barter is that

A.

People are happier when they exchange the same quantities of goods through the medium of money rather than by barter

B.

The person wishing to buy good X may not have good Y which is what the other wants

C.

One person must always be cheated when trade takes place by barter

D.

It increases the initial cost of producing goods

Correct answer is B

No explanation has been provided for this answer.

1,633.

Industries tend to be located closer to market centers than to the sources of major raw materials, if the

A.

Products are relatively cheap to transport to market centers

B.

Products are relatively more expensive to transport than the major raw materials

C.

Raw marterials are bulky

D.

Raw marterials can also be imported

Correct answer is B

No explanation has been provided for this answer.

1,634.

A characteristic of a debenture is that

A.

Its yield is based on profits

B.

Its yield is a fixed rate of interest

C.

It has no redemption date

D.

There is a voting right when interest is paid

Correct answer is B

No explanation has been provided for this answer.

1,635.

A disadvantage of a joint-stock company is

A.

Unlimited liability

B.

Limited liability

C.

Continuity

D.

Loss of controlling interest

Correct answer is D

No explanation has been provided for this answer.