CSEC Economics · May/June 2014 · Paper 2 · Question 3(d)
Analyse ONE benefit of using devaluation to correct a balance of payments problem.
The mark scheme is shown once you've answered.
Practise this questionOther parts of this question
- 3(a)(i)Define the term 'exchange rate revaluation'.[2 marks]
- 3(a)(ii)Define the term 'managed exchange rate'.[2 marks]
- 3(b)State the name of the protectionist measure that limits the quantity of goods entering a country.[1 mark]
- 3(c)Describe TWO disadvantages that may accrue to a Caribbean country moving from a fixed exchange rate to a floating exchange rate system.[6 marks]
More practice: the rest of this paper · more Balance of Payments and Exchange Rates questions · all CSEC Economics past papers