JAMB Economics Past Questions & Answers - Page 421

2,101.

Which of the following is NOT one of the balance of payment entries?

A.

The current account

B.

Foreign exchange

C.

Import and Export duties

D.

Short-term capital

E.

Long-term capital

Correct answer is B

No explanation has been provided for this answer.

2,102.

A commercial bank is able to create money

A.

By printing it

B.

By maintaining reserve

C.

By creating a demand deposit as it gives a new loan

D.

By issuing cheques to depositors

E.

By borrowing from the central bank

Correct answer is C

No explanation has been provided for this answer.

2,103.

The value of money depends primarily on?

A.

The gold backing of the currency

B.

The gold backing of both currency and deposit

C.

The general price level

D.

Government decree that it is legal tender

E.

None of the above

Correct answer is C

No explanation has been provided for this answer.

2,104.

A disadvantage of the corporate form of business is the?

A.

Risk of the owners of loss of personal effects if the business should fail

B.

Ability of the corporation to is financial resources

C.

Limited life span of the corporation

D.

Problems presented by separation ownership from control

E.

None of the above

Correct answer is D

No explanation has been provided for this answer.

2,105.

In a free market economy, the rationing of scarce goods is done principally by

A.

The government

B.

Business organizations

C.

The price mechanism

D.

Consumers

E.

Both A and B

Correct answer is D

No explanation has been provided for this answer.