Meaning, Types And Determination Of Exchange Rate Jamb Economics Past Questions
Question 1
The reduction in the value of a country’s currency in relation to the value of the currencies of other nation is known as____________
- A. Deflation
- B. Inflation
- C. Devaluation
- D. Revaluation
Question 2
Which of the following can cause oil glut in the International market?
- A. Excess demand over supply
- B. Under- capacity utilization
- C. Excess supply over demand
- D. Economic boom
Question 3
A condition in which official and autonomous exchange rate coexist is
- A. dual exchange rate system
- B. managed floating rate system
- C. market determined exchange rate system
- D. multiple exchange rate system
Question 4
A major determinant of floating exchange rate is
- A. the highest denomination of the currency
- B. an Act of the parliament
- C. the system of government
- D. the forest of demand and supply
Question 5
The exchange rate determined by market forces is known as
- A. pegged exchange rate
- B. floating exchange rate
- C. fixed exchange rate
- D. dual exchange rate
