In a period of unemployment and falling prices, the government should adopt a
Zero-based budget
Budget deficit
Balanced budget
Surplus budget
Correct answer is C
No explanation has been provided for this answer.
In most underdeveloped countries, development plans do not achieve their objective due to
Poor coordination between local and national governments
Exportation of more primary products
Lack of educational institutions in those countries
Urban-rural migration of citizens
Correct answer is B
Developing economies mainly trade in primary exports. These primary products are transformed into finished goods by the developed economies and sold to underdeveloped countries. The money raised from the sale of the primary products is then used to pay for manufactured imports, this has been a serious impediment in its developmental strides.
In most developing countries, a large percentage of the labour force is engaged in
Trading
Mining
Agriculture
Manufacturing
Correct answer is C
Developing countries are characterized by a large percentage of the labour force engaged in agricultural activities. These are countries with low per capita income and a high number of poor people. These poor persons are predominantly found in the agricultural sector.
Insurance Companies are similar to commercial banks in that they
Compensate their customers for losses
Act as lender of last resort
Help in maintaining monetary stability in a nation
Help in mobilizing savings for investment
Correct answer is D
No explanation has been provided for this answer.
What happens when the central bank increases the bank rate?
Amount of borrowing increases
Amount of borrowing decreases
Supply of money increases
Commercial banks are not affected
Correct answer is B
The central bank normally raises the lending rates in order to discourage borrowing. When the interest charged on loans is high, fewer people will be willing to borrow money from financial institutions.