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

A. export diversification
B. import substitution
C. short-term borrowing from IMF
D. internal borrowing from commercial banks

Correct Answer:

Option C = short-term borrowing from IMF

Explanation

In correcting the balance of payment deficit, countries may borrow money in foreign currencies, which they must repay with interest, by purchasing with their own currencies, the foreign currencies held by the IMF.