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

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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

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3

What are some negative effects of currency devaluation?

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A

Increased exports

 

B

Higher inflation

C

Lower trade deficit

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4

When was the most recent currency devaluation in Nigeria?

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A

 2018

B

2020

 

C

2022

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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

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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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