Post Utme Ims U 2022 Economics Question 19

Practice objective / multiple choice question 19 from the 2022 Post Utme Ims U Economics examination.

Post Utme Ims U 2022 Economics Objective / Multiple Choice
Question 19 POST_UTME_IMS_U • 2022 • ECONOMICS • objective

A country's balance of payments (BOP) accounts are in equilibrium when its current account (CA) equals its capital account (KA). If the country's CA is $100 million and its KA is $150 million, what is the likely effect on 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 2022 Economics Question 19. It is one of the objective questions from the 2022 Post Utme Ims U Economics examination.

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