Money and Inflation Generix Content - Money and Inflation
HOME

EXAMS

JAMB

WAEC

CONTENTS

SIGN IN

JOIN NOW
"Money and Inflation" question number distribution across years
loading...
Search "Money and Inflation" on the following sites online
 
Economics index on skoool nigeria
 
WAEC questions for "Economics :: Money and Inflation"
Q1

A medium of exchange which is generally acceptable is

A

barter

B

a cheque

C

government bong

D

money

E
Q2

Since money is demanded for what it can buy, the demand is said to be

A

derived

B

joint

C

composite

D

complementary

E
Q3

The supply of money in the economy includes

A

bank notes only

B

bank notes and coins

C

bank notes and bank deposits

D

bank notes, coins and bank deposits

E
Q4

The indicator of the value of money is

A

the general price level

B

the equilibrium price

C

consumers' income

D

the interest rate

E
Q5

A continuous fall in the general price level is called

A

recession

B

depression

C

deflation

D

stagflation

E
Q6

The most important quality of money is that it must be

A

relatively scarce

B

generally acceptable

C

portable

D

durable

E
Q7

A certain amount of money is needed for everyday expenditure like buying of goods, transportation and others. This is 

A

transaction demand for money

B

precautionary demand for money

C

derived demand for money

D

speculative demand for money

E
Q8

The level of money is generally measured in relation to the 

A

interest rate charged on bank loans

B

general price level

C

size of a country's gold stock

D

volume of imports

E
Q9

Which of the following is true under rapid inflation? People

A

demand less foreign exchange

B

set up businesses

C

rush to pay their taxes

D

hardly want to lend money

E
Q10

A country whose economy is buoyant is likely to have 

A

a weak currency

B

devaluation from time to time

C

a strong currency

D

balance of payment problems

E
Q11

Which of the following is a legal tender in West Africa?

A

treasury bill

B

share

C

credit card

D

currency

E
Q12

The policy of government to increase the supply of money to meet its own expenditure plans is likely to be

A

speculative

B

deflationary

C

inflationary

D

contractionary

E
Q13

The tendency for price to rise while the value of money falls is known as

A

bills of exchange

B

inflation

C

depreciation 

D

deflation

E
Q14

One way to solve the economic problem of inflation in a country is by increasing the

A

supply of commodities

B

supply of currency

C

salaries of workers

D

demand for commodities

E
Q15

The direct exchange of one good for another without the use of money is known as

A

foreign exchange

B

exchange money from people

C

willingness of people to hold money

D

willingness of people to keep all their resources in assets

E
Q16

Which of the following will be an effect on inflation? 

A

Wage earners will gain

B

Borrowing of money will be restricted 

C

Money lenders will gain

D

Borrowers of money will gain

E
Q17

Government can control inflation by

A

printing money money

B

reducing the rate of taxes

C

reducing the rate of expenditure

D

establishing more banks

E
Q18

The market consisting of a network of dealers where currencies can be brought and sold is known as

A

capital market

B

foreign exchange market

C

commodity market

D

the stock market

E
Q19

The value of money is best determined by

A

input-output ratio

B

the purchasing power

C

the importance people attach to it 

D

economies of scale

E
Q20

Money becomes a very poor store of value in a period of

A

deflation

B

depression

C

recession

D

inflation

E
Q21

Cost-pull inflation is likely to arise when

A

there is an increase in government spending

B

there is an increase in direct tax

C

demand for higher wages is granted

D

there is a decrease in bank lending

E
Q22

Precautionary motive relates to

A

demand for money

B

demand for goods

C

supply of money

D

supply of goods

E
Q23

When the demand for foreign exchange exceeds its supply, the value of the domestic currency

A

appreciates

B

depreciates

C

inflates 

D

expands

E
Q24

Which of the following is a problem of trade by barter? 

A

Exchange rate determination

B

Hoarding

C

How to produce

D

what to produce

E
Q25

Cheques are not money because

A

their use is confined to business hours

B

there are few banks in rural areas

C

they are not generally acceptable as a medium of exchange

D

they are not issued by governments

E
Q26

The value of money is best determined by its

A

size

B

purchasing power

C

portability

D

being recognized

E
Q27

Who among the following will benefit from inflation?

A

Pensioners

B

Savers

C

Debtors

D

Creditors

E
Q28

Inflation can be controlled by increasing

A

aggregate supply

B

government expenditure

C

aggregate demand

D

a deficit budget

E
Q29

Devaluation of currency in a country is likely to lead to

A

increasing population

B

increasing imports

C

exports becoming cheaper

D

reduced exports

E
Q30
One of the functions of money is
A
double coincidence of want
B
unit of account
C
indivisibility
D
making payments through banks only
E
Q31
Money is demanded for which of the following reasons?
A
To unforeseen contingencies
B
To solve the problem of inflation
C
It is easily divisible
D
It is portable
E
Q32
The Quantity Theory of money state that a reduction in the quantity of money in circulation would bring about
A
a geometrical fall in prices
B
a proportionate fall in prices
C
rise in prices
D
an unequal fall in prices
E
Q33

Which of the following is the most liquid asset?

A

Bank notes

B

Silver

C

Bank deposits

D

Cheques

E
Q34

The situation in which there is a persistent in the general price level is referred to as

A

devaluation

B

depreciation

C

deflation

D

inflation

E
Q35

One disadvantage of inflation is that

A

fixed income earners gain

B

fixed income earner lose

C

businessmen lose

D

standard of living rises

E
Q36

If there is an increase in wages and salaries without a corresponding increase in the supply of goods and services, the situation will lead 

A

a reduction in aggregate demand

B

inflation

C

depression

D

budget surplus

E
Q37
The most unique quality of money is its
A
relative scarcity
B
divisibility
C
durability
D
general acceptability
E
Q38
Inflation can best be checked by
A
allowing supply to remain constant
B
decreasing supply and increasing wages
C
increasing supply and holding wages constant
D
decreasing supply and wages
E
Q39
The system whereby goods are exchanged for goods is known as
A
stock exchange
B
barter system
C
banking
D
co-operative system
E
Q40
The precautionary motive for holding money is to enable the holder to
A
buy stocks when interests are high
B
overcome unforeseen contingencies
C
buy goods and services on a daily basis
D
buy fixed assets
E
Q41
In money market, money can only be borrowed for
A
long term
B
short term
C
capital projects
D
public utilities
E
Q42
Deflation can be controlled by increase in
A
the bank rate
B
income tax
C
the price level
D
the budget deficit
E
Q43
One quality of money which makes it possible to be carried easily is its
A
scarcity
B
durability
C
portability
D
acceptability
E
Q44
The reduction in the value of a country's currency in relation to the currencies of the other nations is known as
A
deflation
B
devaluation
C
inflation
D
revaluation
E
Q45
Which of the following combination of qualities ensures a good tax system?
A
deflationary, equity, certainty and convenience
B
Economy, convenience, certainty and equity
C
Economy, deflationary, inflationary and certainty
D
Economy, convenience, certainty and inflationary
E
Q46
Which of the following is used to measure inflation?
A
Open market operation
B
Cash-Deposit ratio
C
Price index
D
Multiplier
E
Fiscal policy
Q47
The value of money is affected by the
A
speculative motive
B
price level
C
transactionary motive
D
percautionary motive
E
employment level
Q48
Which of the following is not a problem in the barter economy?
A
Multiple exchange rate
B
indivisibility of goods and services
C
Double coincidence of wants
D
Bulkiness of commodities
E
Inflation
Q49
Inflation caused by increase in demand can be curbed by
A
exporting more goods and service
B
hoarding of goods
C
increasing the level of output
D
increasing the level of money supply
E
reducing importation
Q50
All the following are different forms of money except
A
bank notes
B
demand deposits
C
coins
D
currencies
E
bank tellers
Q51
Demand-pull inflation results when there is
A
inadequate improvement in the wage rate of workers
B
excessive demand due to high purchasing power
C
excessive supply of raw materials for production
D
rise in the productivity of the factors of production
E
excessive rise in the standard of living
Q52
Changes in the value of money can be measured by
A
the distributors
B
a price index
C
a demand index
D
a supply index
E
the use of cheques
Q53
Which of the following does not give a characteristic of money?
A
Durable
B
Portable
C
Divisible into small units
D
Generally acceptable
E
Medium of exchange
Q54
Which of the following constitute the major component of money supply in a developed economy?
A
Demand deposits
B
Paper money
C
Bank drafts
D
Coins
E
Time deposits
Q55
The real value of money is
A
its face value
B
what it can buy at a particular time
C
its rate of exchange with other curriencies
D
its intrinsic worth
E
its rate of circulation
Q56

Which of the following functions of money makes it possible for any person to provide for old age

A

Medium of exchange

B

Store of value

C

Measure of value

D

Unit of account

E

Standard for deferred payments

Q57

The Quantity Theory of Money states that an increase in the quantity of money would bring about

A

a geometrical rise in prices

B

an unequal rise in prices

C

a proportionate rise in prices

D

an absolute rise in prices

E

a less than proportionate increase in prices

Q58

Which of the following is not a characteristic of money?

A

Scarcity

B

Durability

C

Divisibility

D

Homogeneity

E

Mobility

Q59

Money becomes a very poor store of value in a period of

A

deflation

B

stable prices

C

recession

D

inflation

E

harvest

Q60

Money as a unit account implies that it can be

A

counted in units

B

used to facilitate exchange

C

used to measure the value of goods and services

D

used to store goods and services

E

used for future payment