Post Utme Igbinedion University 2017 Economics Question 7

Practice objective / multiple choice question 7 from the 2017 Post Utme Igbinedion University Economics examination.

Post Utme Igbinedion University 2017 Economics Objective / Multiple Choice
Question 7 POST_UTME_IGBINEDION_UNIVERSITY • 2017 • ECONOMICS • objective

A country's balance of payments (BOP) is in equilibrium when the current account and capital account are balanced. What is the implication of this for the country's exchange rate?

Answer Options

A. The exchange rate appreciates.
B. The exchange rate depreciates.
Correct Answer C. The exchange rate remains unchanged.
D. The exchange rate becomes volatile.
Correct Answer
C
Correct Option:
The exchange rate remains unchanged.

About This Question

This is Post Utme Igbinedion University 2017 Economics Question 7. It is one of the objective questions from the 2017 Post Utme Igbinedion University Economics examination.

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