Which measure is most directly used to assess the extent to which an economy depends on foreign financing?
Correct answer: A. Current account balance
- A. Current account balance
- B. Consumer price index
- C. Agricultural yield
- D. Labour force participation rate
Explanation
A persistent current account deficit often requires financing through borrowing, investment inflows or reductions in foreign exchange reserves. The other measures describe prices, farm productivity and labour-market participation rather than external financing needs.
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About Economy of Pakistan
Pakistan's economy is examined through agriculture, industry, services, trade, remittances, employment, population, poverty and regional development. The topic also covers GDP and national income, inflation, fiscal and monetary policy, taxation, public debt, the balance of payments, energy constraints and structural challenges, including the role of the State Bank and development planning.
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