WAEC Economics Past Questions & Answers - Page 109

541.

An increase in the supply of a commodity X automatically results in an increase in the supply of another commodity Y. This is a cause of

A.

Elastic supply

B.

Joint supply

C.

Exceptional supply

D.

Competitive supply

Correct answer is B

Joint supply is where an increase or decrease in the supply of one good leads to an increase or decrease in supply of a by-product. For instance, an increase in the production of computers would lead to a corresponding increase in the supply of computer software, because a computer requires a software to operate.

542.

Which of the following is an asset of a commercial bank?

A.

Reserve funds

B.

Shareholders capital

C.

Customers' deposits

D.

Treasury bills

Correct answer is D

Treasury securities include short term bills, intermediate term notes and long term bonds. These bonds are an asset for banks in the same way that loans are an asset. The bank will receive a stream of payments in the future.

543.

Which of the following is a function of money?

A.

Medium of Communication

B.

Measure of securities

C.

Store of Wealth

D.

Discounting bills of exchange

Correct answer is B

No explanation has been provided for this answer.

544.

The value of money is effected by the

A.

Speculative motive

B.

Price level

C.

Precautionary motive

D.

Intervention of development

Correct answer is B

No explanation has been provided for this answer.

545.

A co-operative society is a

A.

Finance house

B.

Self-help business organization

C.

Public corporation

D.

Non-democratic business organization

Correct answer is B

No explanation has been provided for this answer.