This question was previously asked in
Shift 29/05/2023 3:30 PM - 6:30 PM
Correct Answer
The correct option is (2)
When a nation is a borrower from other countries, it implies:
Deficit in the current account.
A current account deficit occurs when a country is importing more goods and services and making more international payments (such as interest and dividends) to foreign entities than it is receiving from exports and international receipts. This deficit leads to the need to borrow from other countries or attract foreign investment to cover the imbalance.
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