Economics WAEC

Parallel markets are usually the results of?

A. excess supply
B. the activities of rich individuals
C. price legislation
D. inadequate information

Correct Answer: Option C

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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