| Consider the following actions which the Government can take. |
| 1. Devaluing the domestic currency. |
| 2. Reduction in the export subsidy. |
| 3. Adopting suitable policies which attract greater FDI and more funds from FIIs. |
| Which of the above action/actions can help in reducing the current account deficit? |
A) 1 and 2
B) 2 and 3
C) Only 3
D) 1 and 3
Correct Answer: D
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