A country experiences a persistent current account deficit along with a surplus in the capital account. This situation necessarily implies:
CA Foundation · Business Economics · MTP · January 2026
A country experiences a persistent current account deficit along with a surplus in the capital account. This situation necessarily implies:
Suggested Answer and Working Notes:
Correct Answer: Option (B)
B. Net capital inflows financing excess absorption
Topics: International Trade
Related Questions in this Topic
- An important principle of GATT and WTO is the Most-Favoured-Nation (MFN) treatment, which means:
- Real exchange rate increases if:
- Foreign Direct Investment (FDI) is best distinguished from Foreign Portfolio Investment (FPI) by its:
- Non-tariff measures (NTMs) include all except:
- A specific tariff is different from an ad valorem tariff because it is: