Post Utme Lautech 2018 Economics Question 13

Practice objective / multiple choice question 13 from the 2018 Post Utme Lautech Economics examination.

Post Utme Lautech 2018 Economics Objective / Multiple Choice
Question 13 POST_UTME_LAUTECH • 2018 • ECONOMICS • objective

A country's trade deficit is financed by borrowing from abroad. 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 randomly.
Correct Answer
B
Correct Option:
The exchange rate will depreciate.

About This Question

This is Post Utme Lautech 2018 Economics Question 13. It is one of the objective questions from the 2018 Post Utme Lautech Economics examination.

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