Why would an individual increase his level of consumption during inflationary periods?
- A. The real value of any amount saved falls over time
- B. Interest rates are generally low
- C. There are varieties of goods to buy
- D. Wages and salaries stagnate during inflation
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
Which of the following is an asset of a commercial bank?
- A. Reserve funds
- B. Shareholders capital
- C. Customers' deposits
- D. Treasury bills
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
The value of money is effected by the
- A. speculative motive
- B. price level
- C. precautionary motive
- D. intervention of development
A co-operative society is a
- A. finance house
- B. self -help business organization
- C. public corporation
- D. non-democratic business organization
A budget is balance when expected total revenue is
- A. greater than expected expected expenditure
- B. less than total expenditure
- C. equal to expected expenditure
- D. greater than total expenditure
Which of the following is a function of merchant banks?
- A. Acting as bankers' bank.
- B. Lending to the commercial banks as a last resort
- C. controlling inflation in the economy
- D. underwriting and issuing of shares
General rise in the price level induced by increased price of inputs is referred to as
- A. run-away inflation
- B. cost -push inflation
- C. demand -pull inflation
- D. imported inflation
In the balance of payments of a country, tourism is classified under
- A. capital account
- B. invisible trade
- C. merchandise trade
- D. official reserves
Trade between two countries is known as
- A. bilateral trade.
- B. bilateria trade
- C. multilateral trade
- D. internal trade
All economic systems must decide what to produce because
- A. resources are not available
- B. consumers want maximum satisfaction
- C. resources are limited in supply
- D. producers want maximum profit
A debenture holder earns
- A. commission
- B. profits
- C. fixed interest
- D. quasi-rent
Which of the following is not a function of an insurance company?
- A. pooling resources together against risks
- B. Mobilization of funds through premiums collected
- C. Encouragement of investment by security of capital
- D. collection of deposits from the public for investment
In Economics , a market is defined as any
- A. agreement made for consumers to buy all they need
- B. ngement made for producers sell all their goods
- C. agreement to sell commodities at low prices
- D. arrangement whereby the buyers and sellers are in contact
The action of government to forgo road construction in order to provide more health facilities denotes
- A. sound economic decision
- B. opportunity cost
- C. practicable government policy
- D. scale of preference