WAEC - Economics (2017 - No. 15)

parallel markets are usually the results of 
excess supply
the activities of rich individuals
price legislation
inadequate information

Explanation

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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