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A-LevelEconomicsInternational economic issues9708/12 · May/June 2010 · Q271 Mark

What would identify a country with a 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, May/June 2010 Paper 1 Variant 2, question 27.

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