Which of the following can be a part of financing a current account deficit?
A) remittances
B) FDI
C) exports of services
D) all of the above
E) none of the above

Name: Which of the following can be a part of financing a current account deficit? A) remittances B) FDI C) exports of services D) all of the above E) none of the above
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Question

Quizplus · Accepted Answer

FDI (Foreign Direct Investment) can be used to finance a current account deficit as it involves inflows of capital into the country, which can offset the deficit.

Which of the Following Can Be a Part of Financing