JAMB Economics 2020 Objective — Question 45

Question 45 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2020 Objective paper, with the correct answer and a full explanation.

A measure for preventing the external value of the naira from falling is for the government to

A. increase its spending with foreign reserve
B. sell its own currency
C. reduce interest rate
D. buy its own currency with foreign reserveCorrect

Explanation

Using foreign reserves to buy back its own currency is how government can defend the naira from falling in value.

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