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A measure for preventing the external value of the naira from falling is for the...

Economics
JAMB 2013

A measure for preventing the external value of the naira from falling is for the government to

  • A. increase its spending with foreign reserve
  • B. sell its own currency
  • C. reduce interest rate
  • D. buy its currency with foreign reserve
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Correct Answer: Option B
Explanation

If the naira can be valued to the point where it can compete with other foreign currencies in the foreign exchange market, the value will be high in the international market.

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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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