Post Utme Caleb University 2022 Economics Question 10

Practice objective / multiple choice question 10 from the 2022 Post Utme Caleb University Economics examination.

Post Utme Caleb University 2022 Economics Objective / Multiple Choice
Question 10 POST_UTME_CALEB_UNIVERSITY • 2022 • ECONOMICS • objective

A country is experiencing a trade surplus due to an increase in exports and a decrease in imports. If the country's exchange rate is flexible, what will be the effect on the balance of payments?

Answer Options

A. The balance of payments will worsen due to the increase in imports.
Correct Answer B. The balance of payments will improve due to the increase in exports.
C. The balance of payments will remain unchanged as the exchange rate is flexible.
D. The balance of payments will worsen due to the increase in foreign investment.
Correct Answer
B
Correct Option:
The balance of payments will improve due to the increase in exports.

About This Question

This is Post Utme Caleb University 2022 Economics Question 10. It is one of the objective questions from the 2022 Post Utme Caleb University Economics examination.

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