Post Utme Crawford University 2022 Commerce Question 36

Practice objective / multiple choice question 36 from the 2022 Post Utme Crawford University Commerce examination.

Post Utme Crawford University 2022 Commerce Objective / Multiple Choice
Question 36 POST_UTME_CRAWFORD_UNIVERSITY • 2022 • COMMERCE • objective

The concept of 'Gresham's Law' in international trade is closely related to the idea of 'bad money driving out good money'. What is the primary reason for this phenomenon?

Answer Options

A. The devaluation of a currency leads to a decrease in the value of exports.
Correct Answer B. The overproduction of a currency leads to a decrease in its value.
C. The hoarding of a currency leads to a decrease in its value.
D. The devaluation of a currency leads to an increase in the value of imports.
Correct Answer
B
Correct Option:
The overproduction of a currency leads to a decrease in its value.

About This Question

This is Post Utme Crawford University 2022 Commerce Question 36. It is one of the objective questions from the 2022 Post Utme Crawford University Commerce examination.

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