Types of exchange rate - Jamb Economics Past Questions and Answers

Question 1:

• JAMB 2019

A demand which gives rise to the reverse of the law of demand is__________

A. Derived demand
B. Joint demand
C. Abnormal demand
D. Composite demand

Question 2:

• JAMB 2018

The second equation of exchange is__________

A. MV = PT
B. P = \(\frac {M}{KR}\)
C. P = \(\frac {MV}{T}\)
D. P=MV

Question 3:

• JAMB 2014

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 4:

• 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 5:

• 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