Which of the following tends to improve a country’s financial account?Group of answer choicesIncrease in its exports.Increase in its imports.Increase in investment of stocks and bonds from foreigners.Decrease in investment of stocks and bonds from foreigners.

Which of the following is the most important aim of reforms in the Indian Financial Sector?  A. Promote financial inclusion  B. Restrict foreign investments  C. Discourage savings  D. Increase tax rates on investments

Considering all the other factors are constant, which of the following would be the result of a decrease in interest rates?An increase in investmentsA net capital inflowAn appreciation of the national currencyAn increase in consumption

Which of the following best describes the situation from a current account perspective when a country’s domestic currency weakens?Group of answer choicesThe country is most likely to benefit from its increase in its imports to experience a current account surplus.The country is most likely to benefit from its increase in its exports to experience a current account surplus.The country is most likely to be worse off from its increase in its exports to experience a current account deficit.The country is most likely to be worse off from its increase in its imports to experience a current account deficit.

An increase in a government’s deficit spending will most likely affect a nation in an open economy in which of the following ways?ResponsesThe economy will experience financial capital outflows, and its currency will appreciate.The economy will experience financial capital outflows, and its currency will appreciate.The economy will experience financial capital outflows, and its currency will depreciate.The economy will experience financial capital outflows, and its currency will depreciate.The economy will experience financial capital inflows, and its currency will appreciate.The economy will experience financial capital inflows, and its currency will appreciate.The economy will experience financial capital inflows, and its currency will depreciate.The economy will experience financial capital inflows, and its currency will depreciate.The economy will experience no change in financial capital flows, and the value of its currency will not change.

Which of the following best describes the situation when a country is experiencing more inflows than outflows in investments of stock and bonds?Group of answer choicesThe country is experiencing a current account deficit.The country is experiencing a financial account deficit.The country is experiencing a current account surplus.The country is experiencing a financial account surplus.