question_answer

Some countries may not worry about an unfavourable balance on current account because     [IBPS Clerk 2015]

A)  they know they can always borrow to cover the deficit

B)  they import capital goods to build up export industries that will eventually, eliminate the deficit.

C)  deficits are always a stimulant to economic growth, which is a higher priority

D)  they can if necessary, fix the exchange rate to wipe out the deficit

E)  their capital account will be favourable since the balance of payments always ends up at 0