0
waecE-LEARNING
Economics Paper 2, Nov/Dec. 2010  
Questions: 1 2 3 4 5 6 7 8 9 10 11 12 Main
General Comments
Weakness/Remedies
Strength
Question 11

(a) How do Central Banks use Open Market Operations COMO) to control inflation?
(b) What are the effects of inflation on the following:
       (i)  business man;
       (ii) civil servant;
       (iii) government?

           
_____________________________________________________________________________________________________
Observation

The (a) part of this question was not attempted by most of the candidates. Most of the candidates who attempted it provided the wrong answer. However, the (b) part of the question was well attempted by most candidates. They were able to state the effects of inflation on the business man, civil servant and government. The (a) part of the question required candidates to state thus;
(a) Open Market Operation (OMO): This is the selling of securities to the public through the
commercial banks to reduce their lending ability during inflation. It reduces the purchasing
power of the general publ ic.

               


Powered by Sidmach Technologies(Nigeria) Limited .
Copyright © 2015 The West African Examinations Council. All rights reserved.