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    Question

    In the context of the Indian economy, the Reserve Bank

    of India's report indicating a narrowed current account deficit in Q3 FY24 primarily reflects what economic condition?
    A Reduced foreign investments Correct Answer Incorrect Answer
    B Lowered inflation rates Correct Answer Incorrect Answer
    C Improved trade balances Correct Answer Incorrect Answer
    D Decreased consumer spending Correct Answer Incorrect Answer
    E Increased governmental expenditure Correct Answer Incorrect Answer

    Solution

    The Reserve Bank of India's report of a narrowed current account deficit in Q3 FY24 primarily reflects an improvement in trade balances. This improvement is attributed to increased net services receipts and a marginal rise in the merchandise trade deficit. It signifies a positive shift towards a more balanced international trade scenario, highlighting the robustness of the services sector and the effectiveness of economic policies aimed at enhancing export performance.

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