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Currency Devaluation - SS3 Economics Past Questions and Answers - page 1

1
What is currency devaluation?
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A
An increase in the value of a country's currency
B
A decrease in the value of a country's currency
C
A change in the exchange rate of a country's currency
2
Why do governments devalue their currency?
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A

To reduce inflation

 

B
To make imports cheaper
C
To make exports more competitive
3
What are some negative effects of currency devaluation?
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A

Increased exports

 

B
Higher inflation
C
Lower trade deficit
4
When was the most recent currency devaluation in Nigeria?
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A
2018
B

2020

 

C
2022
5
What is the purpose of currency devaluation in Nigeria?
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A
To make imports cheaper
B

To make exports more competitive

 

C
To reduce inflation
6
What is the impact of currency devaluation on a country's exports?
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7
What is the potential negative impact of currency devaluation on a country's economy?
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