Post Utme Wellspring University 2024 Economics Question 17

Practice objective / multiple choice question 17 from the 2024 Post Utme Wellspring University Economics examination.

Post Utme Wellspring University 2024 Economics Objective / Multiple Choice
Question 17 POST_UTME_WELLSPRING_UNIVERSITY • 2024 • ECONOMICS • objective

A country's balance of payments (BOP) accounts are in equilibrium when the current account (CA) is equal to the capital account (KA). If the country's CA is in deficit, what is the likely effect 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 unchanged.
D. The exchange rate will fluctuate.
Correct Answer
B
Correct Option:
The exchange rate will depreciate.

About This Question

This is Post Utme Wellspring University 2024 Economics Question 17. It is one of the objective questions from the 2024 Post Utme Wellspring University Economics examination.

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