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

Which of the following is most likely to cause a current account deficit to widen?
A. Increase in remittances
B. Fall in imports
C. Increase in exports
D. Rise in crude oil prices
Answer: Option D
Solution (By JKSSB Mock Tests)
Rising crude oil prices increase the import bill, widening the current account deficit.

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Practice More Economy Set 1 Questions

Question #1
In the context of competition policy for digital markets, 'Killer Acquisitions' refer to:
A. Only horizontal mergers among equals
B. Acquisitions of innovative start-ups by dominant incumbents with the aim of discontinuing the target’s innovation to protect the incumbent’s market position
C. Only conglomerate mergers without any competitive effect
D. Acquisitions that always increase innovation

Correct Answer: Option B


Explanation:
Killer acquisitions occur when a dominant firm acquires a potential competitor primarily to eliminate the competitive threat posed by the target’s product or technology rather than to develop it.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Government e-Marketplace' is primarily a platform for:
A. foreign exchange trading
B. public procurement of goods and services
C. retail e-commerce
D. stock trading

Correct Answer: Option B


Explanation:
GeM is an online platform for government procurement of goods and services.

This question belongs to: Economy GK Economy Set 1
Question #3
In the context of international economics, 'Dumping' refers to:
A. Selling goods abroad at a higher price
B. Exporting goods with subsidies only
C. Selling goods abroad at a price lower than in the domestic market
D. Importing goods without tariffs

Correct Answer: Option C


Explanation:
Dumping is the practice of selling a product in a foreign market at a price lower than the domestic price or below the cost of production, often considered an unfair trade practice.

This question belongs to: Economy GK Economy Set 1