Explanation

(a) A commercial bank is a financial institution, usually established as a joint-stock company with the aim of making profit. It usually grants short-term and medium

term loans.

(b) The various ways by which the central bank controls the amount of credit given by the commercial banks are:

(i)Through the manipulation of the Bank Rate:If the central bank wants to encourage the commercial banks to lend more it would reduce the Bank Rate. If it wants to

discourage the commercial banks from lending it would raise the Bank Rate

(ii)Open Market Operations: The central bank sells securities on the open market to reduce the reserves of the commercial banks and so limit their ability to lend. On the other hand if it wants to encourage the commercial banks to lend, it buys securities on the open market to Increase the cash reserves of the commercial banks.

(iii) Special deposits: By calling on the commercial banks to make special deposits With it, the central bank reduces the reserves the commercial banks are free to use to give credit.

(iv)Through the manipulation of the cash minimum reserve ratio/liquidity ratio: The cash ratio is raised when it is desired to discourage lending by the commercial banks. On the other hand it is reduced when it is desired to encourage them to lend

(v)Directives/Selective credit control: The central bank has authority to give direct instructions to the commercial banks as to whether or not they should increase their lending. Sometimes it gives directives as to sectors of the economy that should be favored in granting loans.

(vi)Moral suasion: Sometimes by merely announcing to the commercial banks its policy on lending, the central bank succeeds in getting the commercial banks to behave as expected

(vii)Funding: The central bank can convert short- term securities into long-term securities and so prevent an increase in the reserves of the commercial banks.

Correct Answer: D. central banks

Correct Answer: D. allocating resources

Explanation

One of the core reasons behind the compilation of an accurate census figure is to assist the government in the distribution of resources amongst regions. With census figures, the government can determine what areas are densely or scarcely populated to aid the efficient distribution of resources.

Correct Answer: B. privatisation

Correct Answer: B. The way in which factors of production may be combined to produce output

Explanation

The economic question of how to produce refers to, which techniques are to be adopted? This question is important because the choice of technique depends on the prices of the factors of production. That is, if labour is cheap and capital is expensive, a labor-intensive technique would be considered and vice-versa. The prices of labour and capital are determined by the demand for and supply of labour and capital respectively

Correct Answer: D. raw materials

Correct Answer: C. Organization of Petroleum Exporting Countries

Correct Answer: C. their initial capital is easy to rise

Correct Answer: B. 200

Explanation

Price index is gotten by diving the current market price by the base year price. Hence we have; Price index = 240/120 x 100 = 200

Correct Answer: C. net national product

Explanation

Net National Product is the gross national product minus depreciation i.e NNP = GNP - Depreciation or Capital consumption allowance.