PPSCFPSCNTSPakistan govt jobs
- Subject
- The Balance of Paymentseconomics-mcqs › the-balance-of-payments
- Published
- 27 May 2019
- Last updated
- 28 May 2026
Which economic pattern is commonly observed in countries during the initial phases of rapid economic growth?
Multiple choice question for The Balance of Payments. Select an option, then review the explanation below.
Explanation
Countries undergoing early rapid economic development typically run a trade deficit because their investment demands are greater than their domestic savings, leading to the need for external financing.
More The Balance of Payments MCQs
Practice related questions from the same subject.
- 1.Which of the following statements about the balance of payments is accurate?
- 2.What term describes the difference between a nation's exports and imports of goods?
- 3.What is required to reconcile discrepancies in the balance of payments accounts?
- 4.What does the balance of trade specifically measure?
- 5.What does it indicate when a nation experiences a trade deficit?