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Economics Past Questions and Answers

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Economics Questions

Question 866:

Money market differs from capital market in that it?

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A Deals with short-term loans while capital market deals with long-term funds
B Deals with money only while capital market deals with capital as well
C Is limited in scope while capital market is not
D Uses interest rate while capital does not

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Question 867:

The main reason for charging interest is to?

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A Reward enterpreneurial effort
B Redistribute profits
C Reward investors for present use of profits
D Mobilize more funds for development

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Question 868:

In the keynesian model?

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A The demand for money is inversely related to the rate of interest
B Investment is directly related to the rate of interest
C Investment is not related to the rate of interest to the rate of interest
D The demand for money is directly related to the rate of interest

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Question 869:

If inflation is anticipated to continue?

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A People will lose confidence in goods
B Lenders will demand higher interest rate
C The growth of full employment output will be accelerated
D People will want to hold more money

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Question 870:

Ad valorem tax means?

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A A certain percentage tax based on the value of the commodity
B A certain percentage tax based on the volume of the commodity
C A tax on the income of the consumer
D Payment of a tax on the profits made

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