Economics (AS & A Level) · May / June 2025 · Paper 12 · Question 27
9708Current account of the balance of payments
What is most likely to lead to a persistent surplus in a country's current account of its balance of payments?
- Aa low domestic savings rate
- Ban undervalued exchange rate
- Chighly protectionist policies by other countries
- Dlow investment income from abroad
As printed in the paper
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Correct answer: B. an undervalued exchange rate
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