Post Utme Delsu 2019 Economics Question 10

Practice objective / multiple choice question 10 from the 2019 Post Utme Delsu Economics examination.

Post Utme Delsu 2019 Economics Objective / Multiple Choice
Question 10 POST_UTME_DELSU • 2019 • ECONOMICS • objective

A country is experiencing a trade deficit due to a decrease in exports and an increase in imports. U\sing the concept of the balance of payments, determine the effect of the trade deficit on the exchange rate.

Answer Options

Correct Answer A. The exchange rate will depreciate.
B. The exchange rate will appreciate.
C. The exchange rate will remain unchanged.
D. The exchange rate will fluctuate.
Correct Answer
A
Correct Option:
The exchange rate will depreciate.

About This Question

This is Post Utme Delsu 2019 Economics Question 10. It is one of the objective questions from the 2019 Post Utme Delsu Economics examination.

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