WASSCE Economics · Paper 1 style

Capital market

One sample question with the full working. 1 more in the app, with instant feedback and repair sessions for the traps below.

A stock exchange is a market for

Afoodstuffs
Bshort-term loans only
Cshares and other securities
Dforeign currencies

Show the answer and working

Answer: C

Stock exchange = securities market.

Trap A Uses the everyday meaning of a term: Economic terms have precise definitions. Recall the textbook definition before matching.

Trap B Gives only part of the answer: List every component in the definition (GDP = C + I + G + (X − M)) and tick them off before answering.

Trap D Exchange rate misconceptions: Devaluation lowers the value of the home currency: exports become CHEAPER abroad and imports DEARER at home. Success needs elastic demand (Marshall–Lerner).

Traps in Capital market

Uses the everyday meaning of a term
Economic terms have precise definitions. Recall the textbook definition before matching.
Gives only part of the answer
List every component in the definition (GDP = C + I + G + (X − M)) and tick them off before answering.
Exchange rate misconceptions
Devaluation lowers the value of the home currency: exports become CHEAPER abroad and imports DEARER at home. Success needs elastic demand (Marshall–Lerner).

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