Post Utme Ims U 2022 Economics Question 5

Practice objective / multiple choice question 5 from the 2022 Post Utme Ims U Economics examination.

Post Utme Ims U 2022 Economics Objective / Multiple Choice
Question 5 POST_UTME_IMS_U • 2022 • ECONOMICS • objective

A country's inflation rate is 5% per annum, and its money supply is ₦1,000 billion. Calculate the velocity of money (V) u\sing the quantity equation of money MV = PT.

Answer Options

Correct Answer A. \( V = \frac{PT}{MV} = \frac{1,000\( 1.05 \ \)}{1,000(1)} = 1.05 )
B. \( V = \frac{PT}{MV} = \frac{1,000\( 1 \ \)}{1,000(1.05)} = 0.952 )
C. \( V = \frac{PT}{MV} = \frac{1,000\( 1.05 \ \)}{1,000(1.05)} = 1 )
D. \( V = \frac{PT}{MV} = \frac{1,000\( 1 \ \)}{1,000(1.05)} = 1.05 )
Correct Answer
A
Correct Option:
\( V = \frac{PT}{MV} = \frac{1,000\( 1.05 \ \)}{1,000(1)} = 1.05 )

About This Question

This is Post Utme Ims U 2022 Economics Question 5. It is one of the objective questions from the 2022 Post Utme Ims U Economics examination.

View More Post Utme Ims U 2022 Economics Questions More Post Utme Ims U Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support