Explanation

(a)(i) Building society is a financial institution which specializes in the provision of long term mortgage loans for building purposes.

(ii) The central bank is defined as the asex bank established by an Act of Parliament and charged with management and control of the national monetary affairs and the supervision and coordination of banking and financial activities of a country.

(b)(i) Open Market Operation (OMO): This is the sale and purchase of government securities like treasury bills to influence the supply of money. When there is excess liquidity in the economy, the central bank will sell her treasury bills and vice versa.

(ii) Liquidity ratio/cash ratio: banks are mandated by the law to keep a percentage of their total deposits in the form of liquid assets. This percentage can be increased if the central bank wants to reduce money supply and vice versa.

(iii) Bank rate: This is the rate at which the central bank lends to commercial banks and also discount bills of exchange. To increase money supply the central bank will reduce the bank rate and vice versa.

(iv) Special deposit: the central bank can mandate banks to make special deposits with it so as to mop up excess liquidity when the need arises.

(v) Special directives: the central bank can order or instruct other banks to increase their lending to a particular sector so as to stimulate the sector for the overall growth of the economy.

(vi) Moral suasion: unlike other instruments, this is more of an appeal to other banks to restrict or expand their loans to a particular sector(s) of the economy.

(vii) Funding: this refers to the process where short-term debts of government are converted to long-term debts to reduce excess liquidity.

Explanation

The Nigerian National Petroleum Corporation can achieve internal economies of scale through the following ways:

(i) NNPC should have its own training institute, award scholarship to its workers, organise in-service training to its workers.

(ii) NNPC should apply the use of advanced machines, many workers and the application of division of labour etc. which will increase its output and lower the cost per unit.

(iii) NNPC should provide better welfare facilities such as housing scheme, canteen, medical services, transport scheme etc that will motivate its workes for improved efficiency

(iv) The firm should afford its own research laboratory and employ competent researchers to man it.

(v) With its sound financial standing and large size, NNPC should employ managerial experts in different fields.

(vi) NNPC should buy its raw materials in bulk which will lower the prices and get large discount, sell in bulk and save packing and transport costs and possibly should have its own means of advertising on a large scale.

Correct Answer: B. raw data

Correct Answer: D. paying salaries of workers

Explanation

The cost of paying salaries of workers is an example of government's recurrent expenditure. Recurrent expenditure is a type of government spending that is necessary to keep the government running on a day-to-day basis. It includes costs such as salaries, benefits, and pensions for government employees, as well as the cost of operating government buildings and facilities.

Correct Answer: C. pessimistic

Correct Answer: A. lowest point

Correct Answer: B. is borne only by the consumer

Correct Answer: B. traded on a recognised stock market

Correct Answer: B. inductive reasoning

Explanation

Inductive reasoning is a method of logical thinking in which you use observations combined with experiential information you already know to arrive at a conclusion. Inductive reasoning makes broad generalizations from specific observations. From the question, the price of yam (specific observation), is used to make a broad conclusion / generalization (Inflation)

Correct Answer: B. 60m