Policies to correct imbalances in the current account of the balance of payments
6.5What the syllabus asks of you
- government policy objective of stability of the current account
- effect of fiscal, monetary, supply-side and protectionist policies on the current account
Drill this topic
Every question on Policies to correct imbalances in the current account of the balance of payments, untimed, marked as you go.
Make a worksheet
Choose the years and how many questions, then print it with the answers on separate pages.
13 questions
1May / June 2026 · Paper 14 · Q27Show mark scheme →
Aan increase in expenditure promoting locally produced goods
Ban increase in the quota on cheap imports
Can increase in the restrictions on foreign exchange
Dan increase in the subsidies to exporting industries
Mark scheme
2Oct / Nov 2025 · Paper 11 · Q30Show mark scheme →
Adepreciating the exchange rate
Bintroducing quotas on imports
Craising tariffs on imports
Dsubsidising exports
Mark scheme
3May / June 2025 · Paper 11 · Q28Show mark scheme →
Aa lowering of the level of import duties
Ba reduction in the level of income tax
Cthe introduction of expansionary monetary policy
Dthe use of grants to encourage new investment by firms
Mark scheme
4May / June 2025 · Paper 12 · Q29Show mark scheme →
Adecrease in income tax rates
Bincrease in exchange rates
Cincrease in government spending
Dincrease in import tariffs
Mark scheme
5May / June 2025 · Paper 32 · Q27Show mark scheme →
Adecreasing direct taxes
Bdecreasing government regulations
Cincreasing exchange rates
Dincreasing government spending
Mark scheme
6Oct / Nov 2024 · Paper 12 · Q26Show mark scheme →
Adecreased import quotas
Bdepreciation of currency
Chigher interest rates
Ddecreased import tariffs
Mark scheme
7May / June 2023 · Paper 12 · Q23Show mark scheme →
Ano, yes, no
Bno, no, yes
Cyes, no, yes
Dyes, yes, no
Mark scheme
8May / June 2023 · Paper 13 · Q19Show mark scheme →
Aabolishing tariffs
Bdepreciating the currency
Creducing direct taxes
Dreducing indirect taxes
Mark scheme
9May / June 2023 · Paper 13 · Q27Show mark scheme →
Aa decrease in direct taxes
Ba decrease in regulations to encourage more foreign firms to locate in this country
Can increase of import duties
Dan increase in interest rates
Mark scheme
10Feb / March 2023 · Paper 12 · Q30Show mark scheme →
Aa fall in domestic growth
Bconsumer pessimism
Cincreased domestic saving
Dprice-elastic demand for exports
Mark scheme
11Oct / Nov 2022 · Paper 11 · Q29Show mark scheme →
AIt will attract more foreign currency inflows.
BIt will encourage exporters to find new foreign markets.
CIt will lower the level of imported consumer goods.
DIt will put downward pressure on the exchange rate.
Mark scheme
12Oct / Nov 2021 · Paper 32 · Q30Show mark scheme →
Adecrease the rate of interest
Bdevalue the currency
Cincrease direct taxes
Dremove tariffs on imports
Mark scheme
13Feb / March 2021 · Paper 12 · Q23Show mark scheme →
Aa decrease in its rate of income tax
Ba decrease in its tariffs
Can increase in its level of employment
Dan increase in its subsidies to exporters
Mark scheme