Waec Economics 2021 Past Questions and Answers

Question 41:

• WAEC 2021

A floating exchange rate means that the exchange rate is fixed by the ____________

A. Central bank of the country
B. Forces of demand and supply
C. International monetary fund (IMF)
D. Ministry of Finance

Question 42:

• WAEC 2021

A measure that can be adopted to correct a country 's balance of payments deficit is ____________

A. Allow the currency to appreciate to encourage imports.
B. Allow the currency to depreciate to encourage imports
C. Adopt import substitution strategy
D. Restrict trade with all countries

Question 43:

• WAEC 2021

Records of a country's invisible trade are recorded in her ____________

A. Trade account.
B. Capital account.
C. Current account
D. Financial account.

Question 44:

• WAEC 2021

If a country's import bill is high, she can encourage exports by ____________

A. Allowing her currency to depreciate
B. Allowing her currency to appreciate
C. Liberalizing importation
D. Increasing taxes on all locally produced goods

Question 45:

• WAEC 2021

If a country imposes a barrier on trade, the resultant effect will be ____________

A. A halt in buying and selling
B. High quality goods from local industries
C. An increase in the demand for locally produced goods
D. Shutdown of infant industries