Post Utme Caleb University 2025 Economics Question 26

Practice objective / multiple choice question 26 from the 2025 Post Utme Caleb University Economics examination.

Post Utme Caleb University 2025 Economics Objective / Multiple Choice
Question 26 POST_UTME_CALEB_UNIVERSITY • 2025 • ECONOMICS • objective

A country's balance of payments is in equilibrium when the 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

Correct Answer A. A current account deficit always leads to a capital account surplus.
B. A current account surplus always leads to a capital account deficit.
C. A capital account surplus always leads to a current account deficit.
D. A current account deficit always leads to a capital account deficit.
Correct Answer
A
Correct Option:
A current account deficit always leads to a capital account surplus.

About This Question

This is Post Utme Caleb University 2025 Economics Question 26. It is one of the objective questions from the 2025 Post Utme Caleb University Economics examination.

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