Post Utme Lautech 2023 Economics Question 16

Practice objective / multiple choice question 16 from the 2023 Post Utme Lautech Economics examination.

Post Utme Lautech 2023 Economics Objective / Multiple Choice
Question 16 POST_UTME_LAUTECH • 2023 • ECONOMICS • objective

A country's balance of payments (BOP) is in equilibrium when the current account and capital account are balanced. However, the BOP can also be in equilibrium when the current account is not balanced, but the capital account is not balanced either. Which of the following is a correct statement regarding the BOP equilibrium?

Answer Options

A. The BOP is in equilibrium when the current account and capital account are balanced.
Correct Answer B. The BOP can be in equilibrium when the current account is not balanced, but the capital account is not balanced either.
C. The BOP is in equilibrium when the current account is balanced, but the capital account is not balanced.
D. The BOP is in equilibrium when the capital account is balanced, but the current account is not balanced.
Correct Answer
B
Correct Option:
The BOP can be in equilibrium when the current account is not balanced, but the capital account is not balanced either.

About This Question

This is Post Utme Lautech 2023 Economics Question 16. It is one of the objective questions from the 2023 Post Utme Lautech Economics examination.

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