ECO. 404 (ONLINE QUIZ/ASSIGNMENT-ECONOMICS OF DEVALUATION ONLINE-18/11/2024)
*Multiple Choice Questions*
Write your answer in full and explain it in details.
1. What is currency devaluation?
A) Increase in currency value
B) Decrease in currency value
C) Stable currency value
D) Floating exchange rate
2. Which of the following is a consequence of currency devaluation?
A) Increased imports
B) Decreased exports
C) Increased competitiveness
D) Higher inflation
Write your answer in full and explain it in details.
3. What is the difference between currency devaluation and depreciation?
A) Devaluation is intentional, depreciation is unintentional
B) Devaluation is temporary, depreciation is permanent
C) Devaluation affects exports, depreciation affects imports
D) Devaluation is official, depreciation is market-driven
Write your answer in full and explain it in details.
4. Explain the effects of currency devaluation on a country’s trade balance.
5. Describe the impact of currency depreciation on inflation.
6. Analyze the economic implications of Nigeria’s currency devaluation in 2020.
7. Discuss the differences between fixed and flexible exchange rate systems.
8. Suppose Nigeria devalues its currency by 10%. Analyze the effects on exports, imports, and economic growth.
9. Assume the US dollar appreciates against the Nigerian Naira. Explain the impact on Nigerian exports.
10. Evaluate the effectiveness of currency devaluation as a tool for economic growth.
11. Compare the impact of currency devaluation on small-scale and large-scale businesses.
12. How does currency devaluation affect foreign investment?
13. Explain the relationship between currency depreciation and interest rates.
14. Compare Nigeria’s exchange rate management with that of South Africa.
15. Analyze the differences between the US Federal Reserve’s and Central Bank of Nigeria’s foreign exchange management strategies.
16. Suppose the global economy experiences a recession. Recommend exchange rate policies for Nigeria.
17. Assume Nigeria experiences high inflation. Design a monetary policy package.
18. Discuss the limitations of currency devaluation as a tool for economic development.
19. Explain the impact of currency fluctuations on multinational corporations.
20. Analyze the role of foreign exchange markets in facilitating international trade.
