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WAEC Economics 1991 (August) Question 9

Question 9

Money and Inflation

The value of money is determined by the

  1. A.rate of interest
  2. B.general price level
  3. C.quantity of money in circulation
  4. D.level of economic development
  5. E.weight of the currency notes and coins.
Show the answer and explanation

Answer: B (general price level)

Explanation

Money is worth what it can buy, and that depends on the general level of prices.