Post Utme Futo 2022 Commerce Question 19

Practice objective / multiple choice question 19 from the 2022 Post Utme Futo Commerce examination.

Post Utme Futo 2022 Commerce Objective / Multiple Choice
Question 19 POST_UTME_FUTO • 2022 • COMMERCE • objective

A country's balance of payments (BOP) accounts are in equilibrium when the current account is equal to the capital account. Explain how this equilibrium is achieved.

Answer Options

Correct Answer A. When the current account is equal to the capital account, the country's net foreign assets are zero.
B. When the current account is equal to the capital account, the country's exchange rate is fixed.
C. When the current account is equal to the capital account, the country's trade deficit is zero.
D. When the current account is equal to the capital account, the country's trade surplus is zero.
Correct Answer
A
Correct Option:
When the current account is equal to the capital account, the country's net foreign assets are zero.

About This Question

This is Post Utme Futo 2022 Commerce Question 19. It is one of the objective questions from the 2022 Post Utme Futo Commerce examination.

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