Question

If a country's lending is more than its borrowing 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 B net lender

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