Post Utme Elizade University 2024 Economics Question 21

Practice objective / multiple choice question 21 from the 2024 Post Utme Elizade University Economics examination.

Post Utme Elizade University 2024 Economics Objective / Multiple Choice
Question 21 POST_UTME_ELIZADE_UNIVERSITY • 2024 • ECONOMICS • objective

Consider a country with a balance of payments deficit. If the central bank decides to intervene by selling foreign exchange to importers, what is the likely effect on the exchange rate?

Answer Options

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

About This Question

This is Post Utme Elizade University 2024 Economics Question 21. It is one of the objective questions from the 2024 Post Utme Elizade University Economics examination.

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