parallel markets are usually the results of
ECONOMICS
WAEC 2017
parallel markets are usually the results of
- A. excess supply
- B. the activities of rich individuals
- C. price legislation
- D. inadequate information
Correct Answer: C. price legislation
Explanation
A parallel market arises when the government limits the amount of foreign exchange that can be bought or sold for particular transactions, causing excess demand or supply to spill over into a parallel market, or authorizes that exchange rates for certain transactions be pegged and for other transactions be floating
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