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WAEC Economics 2018 Objective — Question 42

Question 42 of 50 from the West African Examinations Council (WAEC) Economics 2018 Objective paper, with the correct answer and a full explanation.

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Which of the following measures can be adopted to stabilize the external value of the local currency?

  • A. reduce the volume of exports
  • B. increase demand for imports
  • C. decrease domestic money supply
  • D. reduce demand for importsCorrect

Explanation

Reducing the demand for imports lowers the outflow of foreign currency, helping to stabilise/strengthen the local currency's external value.

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