Most sovereign wealth funds were created by nations with ________.

Question

Quizplus · Accepted Answer

Sovereign wealth funds are typically created by countries with current account surpluses, as they have excess funds that they can invest in order to earn more returns. This helps them to diversify their assets, manage risks, and provide a source of income for future generations. Countries with capital account surpluses may also create sovereign wealth funds, but current account surpluses are typically the main source of funding. Current account deficits, on the other hand, indicate that a country is importing more than it is exporting, which means that it may not have the excess funds necessary to create a sovereign wealth fund. The type of economy a country has (such as agriculture intensive) is not directly related to the creation of a sovereign wealth fund.

Most Sovereign Wealth Funds Were Created by Nations with ________