weekly assessment 14/03/25

1. The best way to reduce the supply of money in the economy is to?

increase the liquidity ratio

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increase the number of bank-notes and cheques produced

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decrease treasury bills

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liberalize access to credit

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2. The total amount of money in circulation includes cash?

and current account

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owned by banks and the non-bank public

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and current account balances owned by banks and non-bank public

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owned by banks, the government and the non-bank public

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3. To reduce the high rate of inflation in the economy, the government should?

increase taxes and have a budget surplus

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increase taxes and have a budget deficit

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decrease taxes and have a budget deficit

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decrease taxes and have a balanced budget

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4. The objective of public finance is to promote?

full employment, national income and price stability

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government revenue drive and expenditure to as high a level as possible

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the expansion of government social services

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government revenue drive and minimize government expenditure

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5. In national income accounting, aggregate saving in any year is defined as?

all disposable income not spent on consumption

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all savings deposits in all banks during the year

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all savings and time deposits in all banks during the year

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the value of inventory change for the year

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6. Which of the following combinations is a veritable set of development indicators?

Growth of government expenditure and imports

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Growth of population and national income

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High fertility, literacy and school enrollment rates

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Low infant mortality and high per capita income and literacy rates

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7. Gresham’s law in Economics shows that?

good drives out bad money

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bad money drives out good money

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the value of money varies inversely with the price level

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gold must be available to maintain the price of paper money

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8. Monetary policy aimed at reducing demand-pull inflation in the country may be carried out through?

increase in taxation of private companies, public corporations and private individuals

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increase in cash reserve ratio of commercial banks and the sale of government securities

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decrease in government expenditure on education

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direct price control in the market place

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9. Progressive tax structure is designed to?

take more from the income of the poor

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take more from income of the rich

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take equal proportion of income from both the rich and the poor

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reduce the problems emanating from tax imposition

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10. Taxes and government expenditures are instruments of?

monetary policy

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tax policy

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economic policy

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fiscal policy

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weekly assessment 14/03/25

weekly assessment 14/03/25

ola March 14, 2025

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