Post Utme Delsu 2018 Commerce Question 36

Practice objective / multiple choice question 36 from the 2018 Post Utme Delsu Commerce examination.

Post Utme Delsu 2018 Commerce Objective / Multiple Choice

Question 36 POST_UTME_DELSU • 2018 • COMMERCE • objective

The concept of 'Gresham's Law' in economics states that bad money drives out good money. Which of the following is a correct application of this law?

A. A country with a high inflation rate will see its currency devalue, making it harder for people to afford goods and services.

B. A country with a strong economy will see its currency appreciate, making it easier for people to afford goods and services.

Correct Answer C. A country with a large trade deficit will see its currency devalue, making imports more expensive.

D. A country with a large trade surplus will see its currency appreciate, making exports cheaper.

Correct Answer

Correct Option:

A country with a large trade deficit will see its currency devalue, making imports more expensive.

This is Post Utme Delsu 2018 Commerce Question 36. It is one of the objective questions from the 2018 Post Utme Delsu Commerce examination.

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