Practice - Concept of Surplus and Deficit
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Practice Questions
Test your understanding with targeted questions
Define what constitutes a surplus in terms of Balance of Payments.
💡 Hint: Think about the relationship between exports and imports.
What is a deficit?
💡 Hint: Consider what happens when imports exceed exports.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is a surplus?
💡 Hint: Remember what gets counted as inflows.
A deficit can lead to increased foreign debt. True or False?
💡 Hint: Think about consequences of not having enough reserves.
1 more question available
Challenge Problems
Push your limits with advanced challenges
Given a country experiences a consistent surplus, analyze how this may impact its exchange rate and foreign investment strategies.
💡 Hint: Consider how stronger currency might influence investor perceptions.
If a government realizes it has been running a deficit for three consecutive quarters, propose potential strategies it might adopt to amend this situation.
💡 Hint: Think about economic adjustments that can realign imports and exports.
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