Post Utme Ims U 2018 Economics Question 22

Practice objective / multiple choice question 22 from the 2018 Post Utme Ims U Economics examination.

Post Utme Ims U 2018 Economics Objective / Multiple Choice
Question 22 POST_UTME_IMS_U • 2018 • ECONOMICS • objective

A country's balance of payments (BOP) account is in equilibrium when the current account (CA) is equal to the capital account (KA). If the country's CA is in deficit, what is the likely outcome for the country's 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 Ims U 2018 Economics Question 22. It is one of the objective questions from the 2018 Post Utme Ims U Economics examination.

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