Post Utme Al Hikmah University 2017 Economics Question 22

Practice objective / multiple choice question 22 from the 2017 Post Utme Al Hikmah University Economics examination.

Post Utme Al Hikmah University 2017 Economics Objective / Multiple Choice

Question 22 POST_UTME_AL-HIKMAH_UNIVERSITY • 2017 • ECONOMICS • objective

A country's balance of payments is in surplus, meaning that it has a higher inflow of foreign exchange than outflow. What is the likely effect of this on the country's exchange rate?

Answer Options

Correct Answer A. The exchange rate will appreciate.

B. The exchange rate will depreciate.

C. The exchange rate will remain unchanged.

D. The exchange rate will fluctuate.

Correct Answer

Correct Option:

The exchange rate will appreciate.

About This Question

This is Post Utme Al Hikmah University 2017 Economics Question 22. It is one of the objective questions from the 2017 Post Utme Al Hikmah University Economics examination.

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