Exchange rate - Jamb Economics Past Questions and Answers

Question 11:

• JAMB 1995

Foreign exchange rate in a free market economy is determined by?

A. The government
B. The Central Bank
C. Demand and supply
D. Commercial banks

Question 12:

• JAMB 1998

If a country operates a freely floating exchange rate system, and suffers a balance of payments deficit can be eliminated through?

A. A rise in the external value of its currency
B. A fall in the external value of its currency
C. An increase in the volume of imports
D. The consumption of more foreign goods

Question 13:

• JAMB 2000

If the United Kingdom buys gold for $60 an ounce and Nigeria buys the same ounce for N500, what will be United Kingdom's exchange rate with Nigeria?

A. $0.05 = N1.00
B. $0.06 =N1.00
C. $0.11 =N1.00
D. $0.12 =N1.00

Question 14:

• JAMB 2003

Under a floating exchange rate regime, the determinant of the exchange rate is

A. An Act of the National Assembly
B. The highest denomination of the currency
C. Demand for and supply of foreign goods
D. The system of government

Question 15:

• JAMB 2006

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