JAMB Economics Past Questions & Answers - Page 334

1,666.

Under a system of freely floating exchange rates, an increase in the international value of a country's currency will cause

A.

Its exports to rise

B.

Its imports to rise

C.

Gold to flow into that country

D.

Its currency to be in surplus

Correct answer is B

No explanation has been provided for this answer.

1,667.

A tax on a commodity whose supply is perfectly inelastic is

A.

Shifted completely on the consumer

B.

Completely borne by the supplier

C.

Dividend in the ratio 60; 40 between the consumer and the supplier

D.

Divided half-and-half between the producer and the consumer

Correct answer is B

No explanation has been provided for this answer.

1,668.

Which of the following is a liability of a commercial bank?

A.

Deposits in bank

B.

loans made by the bank to individuals

C.

loans made by the bank to other banks

D.

Bonds purchased by the bank

Correct answer is A

No explanation has been provided for this answer.

1,669.

Find the total credit that the banking system can create if primary deposit is just N100.00 while the cash ratio is 20%?

A.

700.00

B.

600.00

C.

500.00

D.

400.00

Correct answer is C

No explanation has been provided for this answer.

1,670.

The basic purpose of imposing legal reserve requirements on commercial bank is to

A.

Assure the profitability of commercial banks

B.

Provide a device through which credit creation by banks can be controlled

C.

Provide a proper ratio between earning and non-earning bank assets

D.

Provide the Central Bank with working capital

Correct answer is B

No explanation has been provided for this answer.