JAMB Economics Past Questions & Answers - Page 352

1,756.

Which of the following factors enhances the ability of commercial banks to create money?

A.

Reduction in the reserve ratio

B.

Leakage of cash out of banking system

C.

Excess of reserves

D.

Insistence on collateral security

Correct answer is A

No explanation has been provided for this answer.

1,757.

Restriction on credit creation by commercial banks can be effected through

A.

An overdraft

B.

Loans and advances

C.

Demand deposits

D.

Liquidity ratio

Correct answer is D

No explanation has been provided for this answer.

1,758.

Localization of industries refers to the

A.

Tendency to concentrate industries in particular areas

B.

Sitting of industries in certain areas

C.

Deliberate policy of influencing location of industries generally

D.

Zoning of industries

Correct answer is A

No explanation has been provided for this answer.

1,759.

Under partnership, investors who have no desires to be actively involved in the day-to-day management of such organization, are called

A.

Stockholders

B.

Sleeping partners

C.

Part-time investors

D.

Ordinary partners

Correct answer is B

No explanation has been provided for this answer.

1,760.

The most important limitation on the partner as a form of business enterprise is the

A.

Implication for partners' liability

B.

Legal limitation placed on the number of partners

C.

Difficulties arising from having two co-ordinate heads of a firm

D.

Fact that each partner regardless of the capital he contributes, must have the same voting rights

Correct answer is B

No explanation has been provided for this answer.