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Economics
Economics
Medium
Country Q runs a persistent current account deficit financed primarily by strong foreign direct investment (FDI) inflows. An analyst should most likely conclude that:
A
The current account deficit is sustainable because it is financed by long-term productive investment.
B
The current account deficit will inevitably lead to a currency crisis.
C
Country Q should implement trade barriers to reduce imports and close the deficit.
D
The FDI inflows indicate that domestic savings exceed domestic investment.
Select an answer to continue
Tags
#trade-deficit
#current-account
#fdi
#balance-of-payments
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CFA Level I — Economics Practice Question | AcadiFi | AcadiFi