Post Utme Redeemers University 2019 Economics Question 23

Practice objective / multiple choice question 23 from the 2019 Post Utme Redeemers University Economics examination.

Post Utme Redeemers University 2019 Economics Objective / Multiple Choice

Question 23 POST_UTME_REDEEMERS_UNIVERSITY • 2019 • ECONOMICS • objective

A country's balance of payments account shows a trade deficit of ₦100 billion and a capital account surplus of ₦50 billion. 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 become fixed

Correct Answer

Correct Option:

The exchange rate will depreciate

About This Question

This is Post Utme Redeemers University 2019 Economics Question 23. It is one of the objective questions from the 2019 Post Utme Redeemers University Economics examination.

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