Post Utme Joseph Ayo Babalola University 2024 Economics Question 11

Practice objective / multiple choice question 11 from the 2024 Post Utme Joseph Ayo Babalola University Economics examination.

Post Utme Joseph Ayo Babalola University 2024 Economics Objective / Multiple Choice
Question 11 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2024 • ECONOMICS • objective

A country's balance of payments is in equilibrium when its current account and capital account are equal. However, if the country experiences a trade deficit, it may lead to a decrease in its foreign exchange reserves. Which of the following policies can help to reduce the trade deficit and increase foreign exchange reserves?

Answer Options

Correct Answer A. Devaluation of the currency
B. Increase in government sp\ending
C. Reduction in import tariffs
D. Increase in interest rates
Correct Answer
A
Correct Option:
Devaluation of the currency

About This Question

This is Post Utme Joseph Ayo Babalola University 2024 Economics Question 11. It is one of the objective questions from the 2024 Post Utme Joseph Ayo Babalola University Economics examination.

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