Post Utme Christopher University 2025 Economics Question 22

Practice objective / multiple choice question 22 from the 2025 Post Utme Christopher University Economics examination.

Post Utme Christopher University 2025 Economics Objective / Multiple Choice
Question 22 POST_UTME_CHRISTOPHER_UNIVERSITY • 2025 • ECONOMICS • objective

A country's balance of payments (BOP) is in equilibrium when the current account and capital account are balanced. What is the primary factor that determines the equilibrium exchange rate in the BOP?

Answer Options

Correct Answer A. The interest rate differential between countries.
B. The difference in inflation rates between countries.
C. The difference in income levels between countries.
D. The difference in trade balances between countries.
Correct Answer
A
Correct Option:
The interest rate differential between countries.

About This Question

This is Post Utme Christopher University 2025 Economics Question 22. It is one of the objective questions from the 2025 Post Utme Christopher University Economics examination.

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