What could persistent current account deficit lead to? Option 1: Currency appreciation. Option 2: Increased reserves. Option 3: Dependence on foreign borrowings. Option 4: Trade surplus.

The answer is 'Dependence on foreign borrowings.'. View full solution:

CUET Economics - What could persistent current account deficit lead to? | PYQs + Solutions

CUET Economics 2025 30 May Shift 1

Macro

Medium

Currency appreciation.

Increased reserves.

Dependence on foreign borrowings.

Trade surplus.

✅ Correct Option: 3

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