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JAMB Economics 1979 Question 20

Question 20

Money and Inflation

The value of money is generally measured by reference to

  1. A.the interest rate charged on bank loans
  2. B.the general price level
  3. C.the size of a country's gold stock
  4. D.the level of economic development in a country
  5. E.the price of stocks and shares on the stock exchange.
Show the answer and explanation

Answer: B (the general price level)

Explanation

The value of money is what it can buy, so it moves opposite to the general price level.