What might a country with a current account deficit have to do?

Correct answer A. Reduce its stock of foreign assets

Explanation

A current account deficit means the country spends more abroad than it earns, so it must finance the gap by selling foreign assets or borrowing, lowering its net foreign asset position.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.