Suppose you are Economic Advisor in Ministry of Finance Which of the following actions will you endo...........

Economic Affairs Public Finance and Debt Management

Suppose you are Economic Advisor in Ministry of Finance. Which of the following actions will you endorse for reducing the Current Account Deficit?

1. Devaluation of Domestic currency.

2. Reduction of Import duty.

3. Policies to attract more funds from FDI.

Choose the correct ones:

1 and 2 only

All of the above

1 and 3 only

3 only

छोटे Courses बड़े Results

Master Public Finance and Debt Management

Prepare through Micro-courses

Try Now

Explanation:

A current account deficit occurs when the value of imports of goods, services and investment incomes is greater than the value of exports. Policies to reduce a current account deficit involves devaluation, protectionism (increase in import duty),attracting more FDI etc.