Year :
2011
Title :
Economics
Exam :
WASSCE/WAEC MAY/JUNE
Paper 1 | Objectives
41 - 44 of 44 Questions
| # | Question | Ans |
|---|---|---|
| 41. |
Deposit held in a commercial bank are part of A. money supply B. transfer payments C. ordinary shares D. treasury bills Detailed SolutionCommercial bank refers to a financial institution that accepts deposits, offers cheque account services, makes various loans etc. The deposits of commercial banks make up part of the money supply in an economy, which is the total amount of money in circulation or in existence in a country.. |
|
| 42. |
One profitable form of business undertaken by the commercial banks is A. the issuing of cheques B. the payment of standing order C. lending money to borrowers D. accepting cheques from customers Detailed SolutionLending money to borrowers is one profitable business undertaken by the commercial banks. These banks lend money to borrowers and charge interest for the amount lend for the duration of the loan. The interest paid by borrowers is the lender's (bank) is the profit. |
|
| 43. |
When governments wants to discourage consumption, they tax goods whose demand is A. price inelastic B. abnormal in nature C. price elastic D. normal in nature Detailed SolutionTaxation reduces the purchasing power of the people and it reduces their consumption. The decline in consumption leads to decrease in effective demand for the goods and services, which in turn affects the production of these commodities.Government tax goods whose price is elastic. This means that, when there is an increase in price as a result of high taxation, the quantity demanded of the goods will reduce. |
|
| 44. |
A rise in government expenditure can lead to A. higher inflation B. higher unemployment C. lower profits for industries D. lower importation of raw materials by industries Detailed SolutionIncreased government spending invariably means increasing the money supply in the country. Excess money in circulation can lead to inflationary tendencies. |
| 41. |
Deposit held in a commercial bank are part of A. money supply B. transfer payments C. ordinary shares D. treasury bills Detailed SolutionCommercial bank refers to a financial institution that accepts deposits, offers cheque account services, makes various loans etc. The deposits of commercial banks make up part of the money supply in an economy, which is the total amount of money in circulation or in existence in a country.. |
|
| 42. |
One profitable form of business undertaken by the commercial banks is A. the issuing of cheques B. the payment of standing order C. lending money to borrowers D. accepting cheques from customers Detailed SolutionLending money to borrowers is one profitable business undertaken by the commercial banks. These banks lend money to borrowers and charge interest for the amount lend for the duration of the loan. The interest paid by borrowers is the lender's (bank) is the profit. |
| 43. |
When governments wants to discourage consumption, they tax goods whose demand is A. price inelastic B. abnormal in nature C. price elastic D. normal in nature Detailed SolutionTaxation reduces the purchasing power of the people and it reduces their consumption. The decline in consumption leads to decrease in effective demand for the goods and services, which in turn affects the production of these commodities.Government tax goods whose price is elastic. This means that, when there is an increase in price as a result of high taxation, the quantity demanded of the goods will reduce. |
|
| 44. |
A rise in government expenditure can lead to A. higher inflation B. higher unemployment C. lower profits for industries D. lower importation of raw materials by industries Detailed SolutionIncreased government spending invariably means increasing the money supply in the country. Excess money in circulation can lead to inflationary tendencies. |