Post Utme Babcock University 2019 Economics Question 7

Practice objective / multiple choice question 7 from the 2019 Post Utme Babcock University Economics examination.

Post Utme Babcock University 2019 Economics Objective / Multiple Choice
Question 7 POST_UTME_BABCOCK_UNIVERSITY • 2019 • ECONOMICS • objective

A country's balance of payments (BOP) accounts are in equilibrium when the current account (CA) is equal to the capital account (KA). If the country's CA is in surplus by $100 million, and the KA is in deficit by $50 million, what is the net effect on the country's BOP?

Answer Options

Correct Answer A. The BOP is in surplus by $50 million
B. The BOP is in deficit by $50 million
C. The BOP is in equilibrium
D. The BOP is in surplus by $150 million
Correct Answer
A
Correct Option:
The BOP is in surplus by $50 million

About This Question

This is Post Utme Babcock University 2019 Economics Question 7. It is one of the objective questions from the 2019 Post Utme Babcock University Economics examination.

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