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Economics 2020 WAEC Past Questions

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36

Governments in West Africa can curtail inflation by 

  • A. purchasing securities in the open market
  • B. selling securities in the open market
  • C. encouraging importation of goods from all countries
  • D. encouraging banks to lend for
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37

The central bank Can reduce the ability of commercial banks to give out loans by 

  • A. raising the bank rates
  • B. reducing special deposits
  • C. reducing the liquidity ratio
  • D. issuing more currency
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38

Tools of monetary policy do not include

  • A. open market operations
  • B. reserve requirement
  • C. bank rate
  • D. tax and public expenditure
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39

During inflation, the appropriate fiscal measure to adopt is to

  • A. increase indirect taxes
  • B. increase direct taxes
  • C. reduce personal income tax
  • D. increase government expenditure
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40

Mr. X and Mrs. Y pay $500.00 and $1,400.00 as taxes on their earning of S5,000.00 and $7,000.00 respectively. The system of taxation employed is

  • A. specific tax
  • B. proportional tax
  • C. regressive tax
  • D. progressive tax
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