Post Utme Babcock University 2018 Economics Question 30

Practice objective / multiple choice question 30 from the 2018 Post Utme Babcock University Economics examination.

Post Utme Babcock University 2018 Economics Objective / Multiple Choice
Question 30 POST_UTME_BABCOCK_UNIVERSITY • 2018 • ECONOMICS • objective

A country's balance of payments is in equilibrium when the current account is equal to the capital account. What is the effect of an increase in foreign investment on the balance of payments?

Answer Options

A. The current account surplus increases.
B. The current account deficit increases.
Correct Answer C. The capital account surplus increases.
D. The balance of payments is in equilibrium.
Correct Answer
C
Correct Option:
The capital account surplus increases.

About This Question

This is Post Utme Babcock University 2018 Economics Question 30. It is one of the objective questions from the 2018 Post Utme Babcock University Economics examination.

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