Exchange rate - Jamb Economics Past Questions and Answers

Question 6:

• JAMB 1979

The lowering of the exchange rate between country's currency and other currencies is known as

A. The foreign exchange rate
B. Deflation
C. Exchange control
D. The law of comparative advantage
E. None of the above

Question 7:

• JAMB 1984

Let P _x represent the price of exports and P_m the price of imports. Then the terms of trade (TOT) are said to be favourable if

A. \(\frac{Px}{Pm}\)
B. \(\frac{Px}{Pm}\)=1
C. \(\frac{Px}{Pm}\)>1
D. \(\frac{Px}{Pm}\)+1

Question 8:

• JAMB 1987

The rate of exchange between a domestic and a foreign currency is defined as the?

A. Terms of trade
B. Domestic currency price of a unit of the foreign currency
C. Foreign currency price of gold
D. Domestic currency price of gold

Question 9:

• JAMB 1990

Under a system of freely floating exchange rates an increase in the international value of a country's currency will cause?

A. Its exports to rise
B. Its imports to rise
C. Gold to flow into that country
D. Its currency to be in surplus

Question 10:

• JAMB 1991

Under flexible exchange rates, a deficit could be corrected by?

A. Freezing the gold point
B. Appreciation of other currencies
C. Removing export subsidies
D. Removing tariffs