Which of the following is most likely to cause a current account deficit to widen? MCQ with Answer and Explanation

Question

Share Report Error

Which of the following is most likely to cause a current account deficit to widen?

A. Rise in crude oil prices

B. Fall in imports

C. Increase in remittances

D. Increase in exports

Answer: Option A

Solution (By JKSSB Mock Tests)

Rising crude oil prices increase the import bill, widening the current account deficit.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

A mutual fund pools money from investors to invest in:

A. only real estate

B. a diversified portfolio of securities

C. only fixed deposits

D. only government bonds

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
A mutual fund invests pooled investor funds in a diversified portfolio of securities.

This question belongs to: Economy GK Economy Set 1

Question #2

Marginal cost intersects the average total cost curve at its:

A. point of inflection

B. starting point

C. maximum point

D. minimum point

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option D

Explanation:
Marginal cost intersects average total cost at its minimum point.

This question belongs to: Economy GK Economy Set 1

Question #3

Tax buoyancy measures the responsiveness of:

A. tax revenue to changes in GDP without discretionary changes

B. imports to exports

C. expenditure to revenue

D. tax revenue to changes in GDP including discretionary changes

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option D

Explanation:
Tax buoyancy includes both automatic and discretionary changes in tax revenue relative to GDP growth.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs