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JAMB Economics 2009 Objective — Question 37

Question 37 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2009 Objective paper, with the correct answer and a full explanation.

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Guided deregulation as currently practiced in Nigeria implies that

  • A. market forces determine interest and exchange rates
  • B. government alone determines interest and exchange rates
  • C. market forces and government determine interest and exchange ratesCorrect
  • D. exchange rate is regulated while interest rate is fixed

Explanation

The use of both the market forces and the government regulation to determine the exchange rate and the interest rates is called guided deregulation.

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