Post Utme Babcock University 2023 Economics Question 1

Practice objective / multiple choice question 1 from the 2023 Post Utme Babcock University Economics examination.

Post Utme Babcock University 2023 Economics Objective / Multiple Choice
Question 1 POST_UTME_BABCOCK_UNIVERSITY • 2023 • ECONOMICS • objective

A country's balance of payments is in equilibrium when its current account and capital account are equal. However, if the current account is in deficit, the capital account must be in surplus to maintain equilibrium. Which of the following is a correct statement regarding the balance of payments?

Answer Options

A. The current account and capital account are always equal in a country's balance of payments.
Correct Answer B. A current account deficit requires a capital account surplus to maintain equilibrium.
C. A capital account surplus always leads to a current account surplus.
D. The balance of payments is always in equilibrium.
Correct Answer
B
Correct Option:
A current account deficit requires a capital account surplus to maintain equilibrium.

About This Question

This is Post Utme Babcock University 2023 Economics Question 1. It is one of the objective questions from the 2023 Post Utme Babcock University Economics examination.

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