A-LevelEconomicsInternational economic issues9708/12 · May/June 2025 · Q271 Mark

What is most likely to lead to a persistent surplus in a country's current account of its balance of payments?

Alow domestic savings rate

Ban undervalued exchange rate

Chighly protectionist policies by other countries

Dlow investment income from abroad

✓ Correct answer

B: an undervalued exchange rate

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, May/June 2025 Paper 1 Variant 2, question 27.

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