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WAEC Economics 2019 Question 46

Question 46

Balance of Payments and Exchange Rates

One measure for financing a country's balance of payments deficit is through

  1. A.export diversification.
  2. B.import substitution.
  3. C.short-term borrowing from IMF.
  4. D.internal borrowing from commercial banks.
Show the answer and explanation

Answer: C (short-term borrowing from IMF.)

Explanation

The IMF lends to members to cover temporary deficits.