Macro

Balance of Payments

Easy

A __________ account deficit is financed by net capital flows from the rest of the world, thus by a capital account surplus.

Capital

Current

Saving

Recurring

✅ Correct Option: 2

A current account deficit means a country's imports of goods, services, and transfers exceed its exports. This deficit is financed by net capital inflows from abroad (capital account surplus), such as foreign investment, borrowing, or sale of assets. The current and capital accounts together must balance.

2022: 15 July Shift 2

A change in the exchange rate of the Indian rupee and the British Pound from Rs.95 for a pound to Rs.100 for a pound will mean:

2025: 28 May Shift 2

When a government action increases the exchange rate, by making the domestic currency cheaper, it is called..........

2026: 12 May Shift 1

In order to promote exports in a fixed exchange rate system, the government can opt for-

2025: 13 May Shift 1

The difference between the value of exports and the value of imports of goods of a country in a given period of time is known as by what name?

2025: 28 May Shift 1

When income increases, consumer spending increases. Spending on imported goods is also likely to __________.

Decrease.
Constant.
Increase.
Maybe an increase or maybe decrease.

2025: 30 May Shift 1

What does the BOP record?

A __________ account deficit is financed by net capital flows from the rest of the world, thus by a capital account surplus.

Solution

Related questions:

Keyboard Shortcuts

CUET Economics Past Year Questions (Topic-Wise)