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WAEC Economics 2026 Question 24

Question 24

Balance of Payments and Exchange Rates

Devaluation of the currency of a country is mainly aimed at

  1. A.causing a decline in the general prices of goods and services
  2. B.increasing the deficit in the balance of payments account
  3. C.increasing the outflow of foreign exchange
  4. D.increasing the sale of local goods in foreign markets
Show the answer and explanation

Answer: D (increasing the sale of local goods in foreign markets)

Explanation

Devaluation makes exports cheaper abroad.