Post Utme Lead City University 2024 Economics Question 19

Practice objective / multiple choice question 19 from the 2024 Post Utme Lead City University Economics examination.

Post Utme Lead City University 2024 Economics Objective / Multiple Choice
Question 19 POST_UTME_LEAD_CITY_UNIVERSITY • 2024 • ECONOMICS • objective

A country has a balance of payments deficit of ₦500,000,000. The central bank has decided to intervene in the foreign exchange market to reduce the deficit. Assuming the exchange rate is fixed, what will be the effect of the intervention on the exchange rate?

Answer Options

A. The exchange rate will appreciate
Correct Answer B. The exchange rate will depreciate
C. The exchange rate will remain the same
D. The exchange rate will fluctuate
Correct Answer
B
Correct Option:
The exchange rate will depreciate

About This Question

This is Post Utme Lead City University 2024 Economics Question 19. It is one of the objective questions from the 2024 Post Utme Lead City University Economics examination.

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