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CAIE A-Level Economics AS 6.3.3 Current Account Imbalance Causes Questions

Practise explaining why current-account deficits or surpluses arise by linking trade and income conditions with CAIE Economics AS questions.

Syllabus
2026–2028
Course
Economics 9708
Level
AS

Exam points

  • Explain causes of current-account imbalances, linking trade, income and economic conditions to deficits or surpluses.

CAIE A-Level Economics AS 6.3.3 Current Account Imbalance Causes Questions question 1

[Maximum number: 1]

What is the most likely cause of a current account deficit on the balance of payments?

A

an undervalued exchange rate

B

a relatively low rate of inflation

C

a shrinking domestic economy

D

a general fall in national productivity

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