Currency Devaluation - SS3 Economics Past Questions and Answers - page 1
What is currency devaluation?
An increase in the value of a country's currency
A decrease in the value of a country's currency
A change in the exchange rate of a country's currency
Why do governments devalue their currency?
To reduce inflation
To make imports cheaper
To make exports more competitive
What are some negative effects of currency devaluation?
Increased exports
Higher inflation
Lower trade deficit
When was the most recent currency devaluation in Nigeria?
2018
2020
2022
What is the purpose of currency devaluation in Nigeria?
To make imports cheaper
To make exports more competitive
To reduce inflation
What is the impact of currency devaluation on a country's exports?
Currency devaluation makes a country's exports cheaper and more competitive in the international market.
What is the potential negative impact of currency devaluation on a country's economy?
The potential negative impact of currency devaluation on a country's economy includes inflation and increased cost of imported goods.