A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2011 · Q271 Mark

What must be the necessary result of a surplus in the current account of a country's balance of payments?

Adepreciation of the currency

Ban improvement in the terms of trade

Can increase in foreign exchange reserves

Dan increase in net holdings of foreign assets

✓ Correct answer

D: an increase in net holdings of foreign assets

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2011 Paper 1 Variant 2, question 27.

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