WAEC Past Questions and Answers - Page 3823

19,111.

Devaluation means

A.

A reduction in the value of the National currency

B.

A reduction in the purchasing power of the foreign currency

C.

A reduction in the value of the domestic currency relative to foreign currencies

D.

An increase in the value of the national currency

E.

A decrease in the purchasing power of the foreign currencies

Correct answer is C

No explanation has been provided for this answer.

19,112.

Open market operation are the process by which

A.

The Central Banks purchases and sells securities

B.

Commercial Banks purchases and sells securities

C.

Business firms buys raw materials freely

D.

Households buys consumer goods openly

E.

The money market takes over the function of the Central Banks

Correct answer is A

No explanation has been provided for this answer.

19,113.

The value of money is determined by the

A.

Rate of interest

B.

General price level

C.

Quantity of money in circulation

D.

Level of economic development

E.

Weight of the currency notes and coins

Correct answer is B

No explanation has been provided for this answer.

19,114.

If over a period of time there is more money in the economy than the available goods and services , the economy is likely to experience

A.

Devaluation

B.

Inflation

C.

Deflation

D.

Demonetization

E.

Over-valuation

Correct answer is B

No explanation has been provided for this answer.

19,115.

The monetary system that requires a double coincidence of wants is known as the

A.

Gold standard

B.

Barter system

C.

Commodity system

D.

Gold exchange standard

E.

Cheque system

Correct answer is B

No explanation has been provided for this answer.