Question

If a country's borrowing is more than its lending from the rest of the world,it is a _______.

• A. net borrower
• B. net lender
• C. surplus state
• D. deficit state

Answer 1

The correct option is A net borrower

If a country's borrowing is more than its lending to the rest of the world, it is known as a net borrower. In such a case, the country is treated as a debtor nation. . It is very difficult for such nations to raise credit from other nations in monetary terms.