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WAEC Economics 2019 Objective — Question 34

Question 34 of 50 from the West African Examinations Council (WAEC) Economics 2019 Objective paper, with the correct answer and a full explanation.

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Which of the following is true of the value of money? It

  • A. is positively related to the price level
  • B. depends on the value people attach to it
  • C. is determined by the government
  • D. is inversely related to the price levelCorrect

Explanation

The value of money and the general price level move in opposite directions — as prices rise, the purchasing power (value) of money falls, and vice versa.

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