Post Utme Bowen University 2020 Economics Question 26

Practice objective / multiple choice question 26 from the 2020 Post Utme Bowen University Economics examination.

Post Utme Bowen University 2020 Economics Objective / Multiple Choice
Question 26 POST_UTME_BOWEN_UNIVERSITY • 2020 • ECONOMICS • objective

A country's balance of payments account records a trade deficit of $100 million. The central bank decides to intervene by selling $50 million of its foreign exchange reserves to the market. What is the effect on the country's trade deficit?

Answer Options

A. The trade deficit increases by $50 million
Correct Answer B. The trade deficit decreases by $50 million
C. The trade deficit remains unchanged
D. The trade deficit increases by $100 million
Correct Answer
B
Correct Option:
The trade deficit decreases by $50 million

About This Question

This is Post Utme Bowen University 2020 Economics Question 26. It is one of the objective questions from the 2020 Post Utme Bowen University Economics examination.

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