NECO 2014 ECONOMICS ESSAY ANSWERS NO: 3,6,7 More Loading.......... 3. i. Allocation of resources : the study of economics enable the government to allocate scares resources to various sectors of the economy. ii. Rational decision: Economics enables the individuals to chose certain wants among the numerous needs using there scares resources. iii. Satisfaction of wants: the study of economics help us to utilize the principles of choice opportunity cost scale of preference, in other to satisfy human want. iv. Participation in government: the understanding of economics helps individual to participate actively in the act of governance. v. Consumption of commodities: economics also assist us to determine the pattern of consumption of goods and services in our local environment. 6. i international trade involves the exchange of goods and services across national frontiers while domestic trade involves the exchange of good within the borders of goods. ii. In international trade buyer and sellers use different currencies where as buyers and seller in home trade use the same currency. iii. International trade require knowledge of new languages and interpretation while in domestic trade a common languages is used. iv. There are differences in legal systems and culture under international trade where as in domestic trade the legal system are the same. v. There are difference in system of weighing and measuring in international trade while internal trade have the same system of weighing and measuring. 7i .Commercial bank are financial institution which accept deposit and other valuables from the public for sake keeping, with the sole aim of making profit. 7ii. i.Banker to the government:-central bank is an agent and banker to the government. It controls public account, receive revenue on behalf of the government and makes payment from this account. ii.Issuance and control of currency:-The central bank has the right to order the priting of the curremcy and the isuance of it.it controls the circulation of currency,exchnage of the bad notes for new ones,abd sees to the distrution of the bad notes. iii.Mangement of national debt:-The central bank is responsible for the mamagement of national debt of the country. It also act as clearing house for other banks. iv. Maintenance of external reserves:The central bank is also responsible for the maintenance of external reserve of the country. v. External business: The central bank act has agent of the country by relating with other countries and international financial institutions like world bank.
Posted on: Wed, 09 Jul 2014 10:28:43 +0000
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