Which of the following will not contribute to a higher current account deficit?
Increase in price of crude oil
Rise in export of software services
Rise in import of services
Choose the correct answer using the codes given below:
Options:
A . 2 only
B . 3 only
C . 1 and 2 only
D . 1 and 3 only
Answer: Option A Answer: (a) The current account deficit is a measurement of a country’s trade in which the value of goods and services it imports exceeds the value of goods and services it exports. An increase in crude oil price and a rise in import of services oil increase the current account deficit. However, an increase in exports will reduce the deficit.
Submit Comment/FeedBack