A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2010 · Q261 Mark
A government has low reserves of foreign currency. When would it be likely to consider a deficit on current account to be a serious problem?
Awhen the country is experiencing a period of high, sustained growth
Bwhen the deficit alternates regularly with a surplus
Cwhen the deficit exceeds the sum of errors and omissions in the balance of payments account
Dwhen the level of international confidence in the country is low
✓ Correct answer
D: when the level of international confidence in the country is low
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