Post Utme Uniosun 2025 Economics Question 32

Practice objective / multiple choice question 32 from the 2025 Post Utme Uniosun Economics examination.

Post Utme Uniosun 2025 Economics Objective / Multiple Choice
Question 32 POST_UTME_UNIOSUN • 2025 • ECONOMICS • objective

A country's balance of payments account shows a trade deficit of $100 million. If the country's exchange rate is fixed at $1 = 100 units of domestic currency, what will be the effect on the domestic currency's value?

Answer Options

A. Appreciation of domestic currency
Correct Answer B. Depreciation of domestic currency
C. No change in domestic currency's value
D. Increase in domestic currency's value
Correct Answer
B
Correct Option:
Depreciation of domestic currency

About This Question

This is Post Utme Uniosun 2025 Economics Question 32. It is one of the objective questions from the 2025 Post Utme Uniosun Economics examination.

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