Post Utme Lasu 2017 Economics Question 14

Practice objective / multiple choice question 14 from the 2017 Post Utme Lasu Economics examination.

Post Utme Lasu 2017 Economics Objective / Multiple Choice

Question 14 POST_UTME_LASU • 2017 • ECONOMICS • objective

Consider a country with a fixed exchange rate regime. If the country's central bank decides to increase the money supply by 10%, what will be the effect on the balance of payments?

A. The balance of payments will improve due to increased exports.

Correct Answer B. The balance of payments will worsen due to increased imports.

C. The balance of payments will remain unchanged.

D. The balance of payments will improve due to increased foreign investment.

Correct Answer

Correct Option:

The balance of payments will worsen due to increased imports.

This is Post Utme Lasu 2017 Economics Question 14. It is one of the objective questions from the 2017 Post Utme Lasu Economics examination.

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