Economics 0455 · IGCSE · Current account of balance of payments

Current account of balance of payments — practice question

A country recorded a deficit in each of its trade in goods, primary income and secondary income. Even so, it showed a surplus on the current account of its balance of payments. What does this imply?

  • AIt had a floating exchange rate.
  • BIt had a surplus on its trade in services.
  • CIt had a surplus on the government’s budget.
  • DIt was a low-income country.

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