A-LevelEconomicsInternational economic issues9708/12 · Feb/Mar 2016 · Q221 Mark

What would identify a country with a fundamental balance of payments disequilibrium?

Aalternate annual deficits and surpluses in the current account

Bcontinually growing balancing item

Clarge short-term outflow of foreign direct investment

Dpersistent rise in foreign currency reserves

✓ Correct answer

D: persistent rise in foreign currency reserves

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Feb/Mar 2016 Paper 1 Variant 2, question 22.

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