economics

When the federal government guarantees a loan for a state government, such a loan constitutes?

A. a public debt B. a transferred debt C. a private debt D. an inter-governmental debt Correct Answer: Option A…

4 years ago

The major role of NDIC is to?

A. insure bank deposits B. regulate the activities of insurance companies C. ensure adequate capitalization of insurance companies D. accept…

4 years ago

In computing national income; transfers are excluded because?

A. they are received only by the poor B. the figures reduce the size of national income C. it is…

4 years ago

Personal income tax as a source of government revenue is increased when the?

A. tax rate is raised B. tax system is proportional C. retirement age is reduced D. tax base is contracted…

4 years ago

If the marginal propensity to consume is 0.6 and consumption expenditure changes by N10 million; the equilibrium level of income will change by?

A. N4.0 milion B. N25. 0 milion C. N2.5 milion D. N15.0 milion Correct Answer: Option B - N25. 0…

4 years ago

One way of solving the problem of double counting is by?

A. Value-added method B. Income method C. Output method D. Expenditure method Correct Answer: Option A - Value-added method Explanation…

4 years ago

Life insurance companies contribute to economic development by holding a part of their assets in?

A. Long-term financial instruments B. Equipment C. Cash and near money D. Money-market instruments Correct Answer: Option A - Long-term…

4 years ago

In the circular flow of income model; the outflow variables represent?

A. Income B. Expenditure C. Injections D. Leakages Correct Answer: Option D - Leakages Explanation The outflow of income from…

4 years ago

Corrections in the GNP figures for price changes require the use of a?

A. Retail price index B. Producer price index C. Price index D. Price deflator Correct Answer: Option D - Price…

4 years ago

A reduction in the bank rate encourages commercial banks to create money by?

A. Decreasing the interest rate B. maintaining the interest rate C. Doubling the interest rate D. Raising the interest Correct…

4 years ago