This document discusses factors that could cause an increase in credit items and decrease in debit items in a country's balance of payments, as well as policy measures a government could use to prevent exchange rate movements caused by those factors. The document asks to identify 5 factors that could impact the balance of payments' credit and debit items, and to state and explain policy measures a government could use to influence exchange rate movements resulting from those factors.

1. weigh any 5 factors that could cause an increase in the credit items of the balance of payments
and a decrease in the debit items 10 marks
state and explain any policy measures that government could use to prevent the exchange rate
(assuming that it is freely floating) movements caused by the factors in question above 10 marks