Question

Select the factors responsible for a surplus in the current account of an economy, using the cone given below:
1. Its exports are compulsory imports for other economies.
2. It imports low-technology items and exports high-technology items.
3. It has huge domestic market. Code:

• A. Only 1
• B. 1 and 2
• C. Only 3
• D. 1, 2 and 3

Answer 1

The correct option is B 1 and 2

Having a huge domestic market never supports current account positively; yes, it may impact the account negatively if its consumers are demanding more of the importable items.