Post Utme Economics Past Questions and Answers

Question 11:

The expression 'Terms of Trade' is used to describe

A. The quality of exports
B. The direction of foreign trade
C. Terms of purchase on deferred payment basis
D. The rate at which exports exchange for imports
E. Import licensing

Question 12:

The quantity of a currency that exchanges for a unit of another currency is called its ____________

A. Exchange value
B. Barter value
C. Exchange rate
D. Market price
E. Unit price

Question 13:

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
E. Devaluation

Question 14:

When a currency loses its value due to a government action to fix the quantity of the currency that exchanges for another currency, there is ____________

A. Devaluation
B. Depreciation
C. Inflation
D. Fiscal deficit
E. None of the above

Question 15:

Which of the following items in the Balance of Payments Account is an invisible transaction?

A. Imports of cars
B. Export of cocoa
C. Export of crude petroleum
D. Tourism
E. Import of building materials