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Questions › UGC-NET › UGC-NET 2023 › Q50
2 marksInternational Economics › Balance of payments and exchange rates › Balance of payments accounts and the current accountModerateabout 1 min

UGC-NET 2023 Question 50: Balance of payments and exchange rates

The current account deficit of the BoP may be financed in many ways. Which of the following are correct?

(A) FDI inflows

(B) Inflow of foreign portfolio investment

(C) Borrowing from IMF or World Bank

(D) Drawing down foreign exchange reserves.

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Answer and worked solution

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Balance of payments and exchange rates has come up 120 times in 7 exams since 2007.

What this question tests

This question is on Balance of payments accounts and the current account, part of Balance of payments and exchange rates in International Economics.

How a country's transactions with the world are recorded.

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Question from the UGC-NET 2023 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.