Question : When a country experiences a depreciation in its currency, it will likely have a positive impact on its:
Option 1: Imports
Option 2: Exports
Option 3: Current account balance
Option 4: Capital account balance
Correct Answer: Exports
Solution : The correct answer is (b) Exports. depreciation in the currency makes the country's goods and services relatively cheaper for foreign buyers. This increased affordability can boost the competitiveness of the country's exports, potentially leading to an increase in export volumes and revenues.
Question : A country's balance of payments can be in equilibrium when:
Question : The current account balance is calculated as:
Question : A current account deficit indicates that a country is spending more on __________than it is earning from__________.
Question : A decrease in a country's exports is likely to result in:
Question : When a country's current account deficit increases, its capital account balance is likely to:
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