Post Utme Futa 2023 Economics Question 5

Practice objective / multiple choice question 5 from the 2023 Post Utme Futa Economics examination.

Post Utme Futa 2023 Economics Objective / Multiple Choice
Question 5 POST_UTME_FUTA • 2023 • ECONOMICS • objective

A country is experiencing a balance of payments deficit due to a trade deficit. What is the likely effect on the exchange rate?

Answer Options

A. Appreciation of the exchange rate
Correct Answer B. Depreciation of the exchange rate
C. No effect on the exchange rate
D. Increase in the foreign exchange reserves
Correct Answer
B
Correct Option:
Depreciation of the exchange rate

About This Question

This is Post Utme Futa 2023 Economics Question 5. It is one of the objective questions from the 2023 Post Utme Futa Economics examination.

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