MACROECONOMICS -If exchange rates float freely

MACROECONOMICS1. If exchange rates float freely, the exchange rate for any currency is determined by the:A. Demand for and the supply of it.B. Supply of it.C. Demand for it.D. Official reserves that back it.2. If more cedi is required to get a naira, that meansA. The value of cedi has appreciatedB. The value of naira has appreciatedC. The financial market is favourableD. Less cedi is need to buy goods and services locally3. The desire to hold money to buy dollars when the price is low and resell when the price rise is ____motive of holding moneyA. Transactionary.B. PrecautionaryC. SpeculativeD. Bidding4. During drought, the government intervene using one of these measuresA. Contractionary fiscal policyB. Maximum wage legislationC. Increase liquidity ratioD. Buys securities in the open market5. Unemployment caused by shifting patterns in the demand for the products of various industries isbest known as:A. Cyclical unemploymentB. Frictional unemploymentC. Technological unemploymentD. Structural unemployment6. The rate at which the goods of one country exchange for the goods of another country isA. Terms of tradeB. Balance of tradeC. Terms of paymentD. Balance of payment7. Progressive tax is oneA. whose percentage rate increases as the tax base increasesB. whose percentage rate decreases as the tax base increasesC. whose percentage rate increases as the tax base decreasesD. whose percentage rate remains the same as the tax base increases 8. If the incidence of the tax is more on the seller and less on the buyerA. The demand for the taxed commodity is highly elasticB. The demand for the taxed commodity is perfectly inelasticC. The supply of the taxed commodity is highly elasticD. The supply of the taxed commodity is perfectly inelastic9. One of the following is not a debt redemption technique to a countryA. Serial bond redemptionB. Debt reschedulingC. Debt repudiationD. Debt conversion10. In the consumption function c=a+by, a isA. Slope.B. Intercept.C. Dependent.D. Independent.11. The type of agriculture which is concerned with the production of food, animals and cash crops inlarge quantities mainly for sale is known as.A. Plantation farmingB. Co-operative farmingC. Mechanised farmingD. Peasant farming12. One of the following is not the problem of agricultural development in NigeriaA. Establishment of good marketingB. Inadequate financeC. Poor transportationD. Unfavourable climate13. Shortime finance is called ……A. Short time resourcesB. Resources timingC. Limited resourcesD. All of the above14. Cash is employed in a daily ……. ProcessA. PrecedingB. ContinuesC. IntervalD. None of the above15. The green revolution was equally set up by the federal government under the second republicgovernment of shehu shagari between year ……..and …….. A. 1978 and 1983B. 1975 and 1985C. 1976 and 1988D. 1979 and 198316. Cash management functions are carried out in order to guarantee ……….resultA. NormalB. EffectiveC. OrdinaryD. Average17. Holding cash to meet anticipated payment is referred to asA. Spending motivesB. Dept motivesC. Sales motivesD. Transaction motives18. The trade agreement in which two countries exchange goods and services isA. Trilateral international tradeB. Bilateral international tradeC. Multilateral international tradeD. None of the above19. Any policy by which government encourages producers of export goods to produce and export morein order to earn more foreign exchange isA. Export businessB. Export tradingC. Export promotionD. Export international trading20. Excess cash balance creates…….. FundA. HighB. IdleC. ShortageD. All of the above21. The most populous continent in the world isA. AfricaB. AsiaC. AustraliaD. South Africa22. One of the following is not a form of migrationA. International migrationB. Seasonal migrationC. Urban-Urban migrationD. Rural migration23 The most populous country is A.B.C.D. ChinaIndiaUnited statesIndonesia 24. The number of person per square kilometer of land is known asA. Population densityB. PopulationC. Population censusD. None of the above25. One of the following is not the causes of under-populationA. Non availability of employmentB. High level of emigrationC. Decrease in birth rateD. Increase in death rate26. The total amount of money available for use in the economy at a given period of time is known asA. Demand for moneyB. Supply of moneyC. Representative moneyD. Value of money27. Accounts that are held by foreign bank on behalf of domestic banks are calledA. Nostro accountB. Vostro accountC. Foreign accountD. Local account28. To understand the meaning of the term index number the following points are to be noted exceptA. An average figure relates to a single group of commoditiesB. An index number measures the net increase or decrease of the average prices for the group understudyC. An index number measures the extent of changes in the value of money over a period of time, given abase periodD. An index number measures the change in the average price over a period of time29. One of the following is not Keynes motives which led to the demand for money in an economyA. Complementary demandB. The precautionary demandC. The speculative demandD. Transactions demand30. Bank advances loan in the following ways exceptA. OverdraftB. ChequeC. Discounting bill of exchangeD. Call loans 31. The Nigeria stock exchange was established in what year?A. 1964B. 1962C. 1960D. 196132. One f the following is not among the categories of government revenueA. TaxationB. LoansC. FinanceD. Grants33. The most important source of government revenue, that demands a close analysis both in terms ofthe principles underlying it and its impact on the economy isA. Government loanB. TaxationC. Government expenditureD. Tax34. The type of direct tax that deals with the tax on the profit of a company is known asA. Income taxB. Poll taxC. Capital gain taxD. Company tax35. A tax which takes much from the poor than the rich, but in which both the rich and poor pay thesame percentage of their incomes in taxes isA. Regressive taxB. Progressive taxC. Proportional taxD. Equal tax36. Government borrow for the following reasons exceptA. To bridge the gap between tax revenue and expenditureB. To finance the countryC. To repay outstanding deptD. To finance a huge capital project37. When aggregate demand is higher than aggregate supply, the price tends toA. RiseB. FallC. EquityD. None of the above38. A budgets is said to be balanced whenA. Expenditure is greater than revenueB. Expenditure is equal to revenueC. Revenue is less than expenditure D. Revenue and expenditure are in the right state39. Causes of balance of payment problem include the following exceptA. Good harvestB. Higher domestic inflation rateC. High domestic demand for foreign goodsD. A fall in demand for a country’s export40. The account which measures the difference between the receipts of investment capital and credit tofinance imports and exports and the payments of the same to the rest of the world is known asA. Finance account balanceB. Current account balanceC. Balance of paymentD. Capital account balance41. The development plan of senegal’s was between year ………and ………A.1962 and 1967B. 1965 and 1969C. 1960 and 1964D. 1961 and 196442. One of the following is not the type of unemployment in West AfricaA. Frictional unemploymentB. Voluntary unemploymentC. Climatic unemploymentD. Structural unemployment43. The type of unemployment that is caused by the process of growth and it results from theinstallation of labour saving machinery is known asA. Climatic unemploymentB. Technological unemploymentC. Seasonal unemploymentD. Frictional unemployment44. The control of inflation in West Africa include the following exceptA. Provision of storage facilitiesB. Government should embark on industralizationC. Government should pursue policies aimed at boosting agricultural productionD. Provision of farm machinery45. The banks that coordinate the financial policies of government is known asA. Merchant banksB. Insurance banksC. Central banksD. Commercial banks46. One of the following is not the factor affecting the birth rateA. Medical facilitiesB. Social attitude toward children C. Marriage structureD. Age distribution of the population47. Factors that have contributed to the development of capital markets in west Africa include thefollowing exceptA. The need for long term financeB. Establishment of central banksC. Establishment of development finance housesD. Establishment of commercial banks48. In Nigeria the history of merchant banking started in what yearA. 1979B. 1960C. 1978D. 197149. The industrial sector of West African is very small becauseA. The economies are basically educationalB. The economies are basically agriculturalC. There is not enough companiesD. There is not enough graduate50. A strategy of industrialization that seeks to replace goods which are imported into a country bydomestic production isA. Export substitutionB. Import-Export substitutionC. Import substitutionD. None of the above