This question was not very popular with the candidates because majority of them avoided it.  The few candidates who attempted the question performed below average because they did not know or could not distinguish between devaluation and depreciation.  Candidates did not also exhibit any sound knowledge of correcting balance of payments deficit as demanded in the (b) part.  In order to score good marks in this question, candidates were expected to present their answers as follows:

(a) (i)   devaluation is the official reduction of the exchange value of a national currency in terms of the currencies of other countries.

 (ii) depreciation  of currency is the reduction of the exchange value of a national currency in relation to other currencies as a result of changes in demand and supply in the foreign exchange market.

(b) (i)  adoption of foreign exchange control measures;    

 (ii) devaluation;

(iii) borrowing from foreign governments and international institutions e.t.c