WAEC Economics Past Questions & Answers - Page 171

851.

Among the principles of taxation propounded by Adam Smith was that

A.

A tax should be impossible to evade

B.

A tax should be convenient to pay

C.

No tax should be levied on food

D.

There should be no taxation without representation

Correct answer is B

No explanation has been provided for this answer.

852.

The central banks control credit in the economy through the use of

A.

Legal tender

B.

Travelers cheque

C.

Foreign exchange instruments

D.

Open market operation

Correct answer is D

No explanation has been provided for this answer.

853.

Discounting a bill of exchange means the bill is

A.

Cashed over the counter

B.

Sold on the stock exchange

C.

Bought for less than its face value

D.

Sold to the highest bidder

Correct answer is C

No explanation has been provided for this answer.

854.

The lender of last resort in the banking system is the

A.

Industrial banks

B.

Mortgage banks

C.

Commercial banks

D.

Central banks

Correct answer is D

No explanation has been provided for this answer.

855.

A commercial banks deposits are

A.

Liabilities

B.

Assets

C.

Capital

D.

Cash at hand

Correct answer is A

No explanation has been provided for this answer.