Economics Paper 2, Nov/Dec. 2012  
Questions: 1 2 3 4 5 6 7 8 9 10 11 12 Main
General Commsents
Question 4

(a)        What is meant by the value of money?

(b)        State any four qualities of money.                        

(c)            Explain the motives for holding money.


This question was the candidates’ favourite. Most of the candidates who attempted it were able to provide the required answers.  Candidates performance in this question was quite impressive

The following were the expected answers from the candidates:

(a)        (i)         Value of money -        This refers to the purchasing power of money
            (b)        (i)         acceptability;
                        (ii)        portability;
(iii)       divisibility;

  1. relative scarcity;
  2. durability.

(c)        (i)         Transactions motive – holding money to take care of daily expenses, e.g.
            (ii)        Precautionary motive – holding money to take care of unforeseen
   circumstances, e.g. sickness.
            (iii)       Speculative motive     -   holding money to take advantage of investment

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