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Directions: Kindly read the passage carefully and answer the questions given beside.The global distribution of surpluses and deficits in the balance of payments, or the excesses or shortfall in foreign exchange earnings vis-à-vis expenditures, has for multiple reasons been in constant flux. This has implications for the directions in which capital must flow or surpluses must be recycled to deficit countries to ensure global stability and prevent the disruption of development in those countries. One factor that influences the distribution of surpluses and deficits is the uneven development of capitalism with a small set of ‘advanced economies’ at one pole recording surpluses and a large number of less developed or underdeveloped countries recording deficits. This changed, however, when starting in the 1970s, the United States began recording deficits, as it lost competitiveness in trade. In addition, the oil shocks of the 1970s in the form of a spike in prices resulted in a widening of the current account surpluses of the oil exporting countries. These factors blurred the distinction between surplus earning advanced economies and deficit burdened low- and idle-income countries (LMICs).These trends in the balance of payments have been accompanied by financial flows which too have seen significant changes. One change is that flows from governments in the advanced economies that are members of the Paris Club of creditors have been declining, with much of the official flows from these countries being mediated through the multilateral financial institutions. The second is a sharp rise in private capital flows, from commercial banks and private bondholders in search of yields from the advanced capitalist economies to the low and middle income countries. The third is that high growth and large current account surpluses in China have been accompanied by significant bilateral flows from China to the deficit-burdened less developed countries. These changes have made it extremely difficult to generate agreement on the debt forgiveness needed for the poorest countries to stabilise their balance of payments and address structural issues that make their balance of payments fragile. In the event, adjustment has taken the form of austerity in the debt stressed countries, which reduces employment and real incomes of the already poor to curtail imports of essentials in order to reduce deficits. That this is underway is clear from the fact that the current account deficit of the Emerging Markets and Developed economies (EMDEs) excluding China and the OPEC has fallen.Q.What factors have significantly complicated the process of reaching a consensus on the crucial debt forgiveness required by the most impoverished nations?a)The diminishing streams of financial assistance from advanced economies governments.b)The upsurge in private capital movements.c)The existence of substantial bilateral financial transfers from China to less developed countries weighed down by deficits.d)All of the aforementioned.Correct answer is option 'D'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Directions: Kindly read the passage carefully and answer the questions given beside.The global distribution of surpluses and deficits in the balance of payments, or the excesses or shortfall in foreign exchange earnings vis-à-vis expenditures, has for multiple reasons been in constant flux. This has implications for the directions in which capital must flow or surpluses must be recycled to deficit countries to ensure global stability and prevent the disruption of development in those countries. One factor that influences the distribution of surpluses and deficits is the uneven development of capitalism with a small set of ‘advanced economies’ at one pole recording surpluses and a large number of less developed or underdeveloped countries recording deficits. This changed, however, when starting in the 1970s, the United States began recording deficits, as it lost competitiveness in trade. In addition, the oil shocks of the 1970s in the form of a spike in prices resulted in a widening of the current account surpluses of the oil exporting countries. These factors blurred the distinction between surplus earning advanced economies and deficit burdened low- and idle-income countries (LMICs).These trends in the balance of payments have been accompanied by financial flows which too have seen significant changes. One change is that flows from governments in the advanced economies that are members of the Paris Club of creditors have been declining, with much of the official flows from these countries being mediated through the multilateral financial institutions. The second is a sharp rise in private capital flows, from commercial banks and private bondholders in search of yields from the advanced capitalist economies to the low and middle income countries. The third is that high growth and large current account surpluses in China have been accompanied by significant bilateral flows from China to the deficit-burdened less developed countries. These changes have made it extremely difficult to generate agreement on the debt forgiveness needed for the poorest countries to stabilise their balance of payments and address structural issues that make their balance of payments fragile. In the event, adjustment has taken the form of austerity in the debt stressed countries, which reduces employment and real incomes of the already poor to curtail imports of essentials in order to reduce deficits. That this is underway is clear from the fact that the current account deficit of the Emerging Markets and Developed economies (EMDEs) excluding China and the OPEC has fallen.Q.What factors have significantly complicated the process of reaching a consensus on the crucial debt forgiveness required by the most impoverished nations?a)The diminishing streams of financial assistance from advanced economies governments.b)The upsurge in private capital movements.c)The existence of substantial bilateral financial transfers from China to less developed countries weighed down by deficits.d)All of the aforementioned.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: Kindly read the passage carefully and answer the questions given beside.The global distribution of surpluses and deficits in the balance of payments, or the excesses or shortfall in foreign exchange earnings vis-à-vis expenditures, has for multiple reasons been in constant flux. This has implications for the directions in which capital must flow or surpluses must be recycled to deficit countries to ensure global stability and prevent the disruption of development in those countries. One factor that influences the distribution of surpluses and deficits is the uneven development of capitalism with a small set of ‘advanced economies’ at one pole recording surpluses and a large number of less developed or underdeveloped countries recording deficits. This changed, however, when starting in the 1970s, the United States began recording deficits, as it lost competitiveness in trade. In addition, the oil shocks of the 1970s in the form of a spike in prices resulted in a widening of the current account surpluses of the oil exporting countries. These factors blurred the distinction between surplus earning advanced economies and deficit burdened low- and idle-income countries (LMICs).These trends in the balance of payments have been accompanied by financial flows which too have seen significant changes. One change is that flows from governments in the advanced economies that are members of the Paris Club of creditors have been declining, with much of the official flows from these countries being mediated through the multilateral financial institutions. The second is a sharp rise in private capital flows, from commercial banks and private bondholders in search of yields from the advanced capitalist economies to the low and middle income countries. The third is that high growth and large current account surpluses in China have been accompanied by significant bilateral flows from China to the deficit-burdened less developed countries. These changes have made it extremely difficult to generate agreement on the debt forgiveness needed for the poorest countries to stabilise their balance of payments and address structural issues that make their balance of payments fragile. In the event, adjustment has taken the form of austerity in the debt stressed countries, which reduces employment and real incomes of the already poor to curtail imports of essentials in order to reduce deficits. That this is underway is clear from the fact that the current account deficit of the Emerging Markets and Developed economies (EMDEs) excluding China and the OPEC has fallen.Q.What factors have significantly complicated the process of reaching a consensus on the crucial debt forgiveness required by the most impoverished nations?a)The diminishing streams of financial assistance from advanced economies governments.b)The upsurge in private capital movements.c)The existence of substantial bilateral financial transfers from China to less developed countries weighed down by deficits.d)All of the aforementioned.Correct answer is option 'D'. Can you explain this answer?.

Solutions for Directions: Kindly read the passage carefully and answer the questions given beside.The global distribution of surpluses and deficits in the balance of payments, or the excesses or shortfall in foreign exchange earnings vis-à-vis expenditures, has for multiple reasons been in constant flux. This has implications for the directions in which capital must flow or surpluses must be recycled to deficit countries to ensure global stability and prevent the disruption of development in those countries. One factor that influences the distribution of surpluses and deficits is the uneven development of capitalism with a small set of ‘advanced economies’ at one pole recording surpluses and a large number of less developed or underdeveloped countries recording deficits. This changed, however, when starting in the 1970s, the United States began recording deficits, as it lost competitiveness in trade. In addition, the oil shocks of the 1970s in the form of a spike in prices resulted in a widening of the current account surpluses of the oil exporting countries. These factors blurred the distinction between surplus earning advanced economies and deficit burdened low- and idle-income countries (LMICs).These trends in the balance of payments have been accompanied by financial flows which too have seen significant changes. One change is that flows from governments in the advanced economies that are members of the Paris Club of creditors have been declining, with much of the official flows from these countries being mediated through the multilateral financial institutions. The second is a sharp rise in private capital flows, from commercial banks and private bondholders in search of yields from the advanced capitalist economies to the low and middle income countries. The third is that high growth and large current account surpluses in China have been accompanied by significant bilateral flows from China to the deficit-burdened less developed countries. These changes have made it extremely difficult to generate agreement on the debt forgiveness needed for the poorest countries to stabilise their balance of payments and address structural issues that make their balance of payments fragile. In the event, adjustment has taken the form of austerity in the debt stressed countries, which reduces employment and real incomes of the already poor to curtail imports of essentials in order to reduce deficits. That this is underway is clear from the fact that the current account deficit of the Emerging Markets and Developed economies (EMDEs) excluding China and the OPEC has fallen.Q.What factors have significantly complicated the process of reaching a consensus on the crucial debt forgiveness required by the most impoverished nations?a)The diminishing streams of financial assistance from advanced economies governments.b)The upsurge in private capital movements.c)The existence of substantial bilateral financial transfers from China to less developed countries weighed down by deficits.d)All of the aforementioned.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.

Here you can find the meaning of Directions: Kindly read the passage carefully and answer the questions given beside.The global distribution of surpluses and deficits in the balance of payments, or the excesses or shortfall in foreign exchange earnings vis-à-vis expenditures, has for multiple reasons been in constant flux. This has implications for the directions in which capital must flow or surpluses must be recycled to deficit countries to ensure global stability and prevent the disruption of development in those countries. One factor that influences the distribution of surpluses and deficits is the uneven development of capitalism with a small set of ‘advanced economies’ at one pole recording surpluses and a large number of less developed or underdeveloped countries recording deficits. This changed, however, when starting in the 1970s, the United States began recording deficits, as it lost competitiveness in trade. In addition, the oil shocks of the 1970s in the form of a spike in prices resulted in a widening of the current account surpluses of the oil exporting countries. These factors blurred the distinction between surplus earning advanced economies and deficit burdened low- and idle-income countries (LMICs).These trends in the balance of payments have been accompanied by financial flows which too have seen significant changes. One change is that flows from governments in the advanced economies that are members of the Paris Club of creditors have been declining, with much of the official flows from these countries being mediated through the multilateral financial institutions. The second is a sharp rise in private capital flows, from commercial banks and private bondholders in search of yields from the advanced capitalist economies to the low and middle income countries. The third is that high growth and large current account surpluses in China have been accompanied by significant bilateral flows from China to the deficit-burdened less developed countries. These changes have made it extremely difficult to generate agreement on the debt forgiveness needed for the poorest countries to stabilise their balance of payments and address structural issues that make their balance of payments fragile. In the event, adjustment has taken the form of austerity in the debt stressed countries, which reduces employment and real incomes of the already poor to curtail imports of essentials in order to reduce deficits. That this is underway is clear from the fact that the current account deficit of the Emerging Markets and Developed economies (EMDEs) excluding China and the OPEC has fallen.Q.What factors have significantly complicated the process of reaching a consensus on the crucial debt forgiveness required by the most impoverished nations?a)The diminishing streams of financial assistance from advanced economies governments.b)The upsurge in private capital movements.c)The existence of substantial bilateral financial transfers from China to less developed countries weighed down by deficits.d)All of the aforementioned.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Directions: Kindly read the passage carefully and answer the questions given beside.The global distribution of surpluses and deficits in the balance of payments, or the excesses or shortfall in foreign exchange earnings vis-à-vis expenditures, has for multiple reasons been in constant flux. This has implications for the directions in which capital must flow or surpluses must be recycled to deficit countries to ensure global stability and prevent the disruption of development in those countries. One factor that influences the distribution of surpluses and deficits is the uneven development of capitalism with a small set of ‘advanced economies’ at one pole recording surpluses and a large number of less developed or underdeveloped countries recording deficits. This changed, however, when starting in the 1970s, the United States began recording deficits, as it lost competitiveness in trade. In addition, the oil shocks of the 1970s in the form of a spike in prices resulted in a widening of the current account surpluses of the oil exporting countries. These factors blurred the distinction between surplus earning advanced economies and deficit burdened low- and idle-income countries (LMICs).These trends in the balance of payments have been accompanied by financial flows which too have seen significant changes. One change is that flows from governments in the advanced economies that are members of the Paris Club of creditors have been declining, with much of the official flows from these countries being mediated through the multilateral financial institutions. The second is a sharp rise in private capital flows, from commercial banks and private bondholders in search of yields from the advanced capitalist economies to the low and middle income countries. The third is that high growth and large current account surpluses in China have been accompanied by significant bilateral flows from China to the deficit-burdened less developed countries. These changes have made it extremely difficult to generate agreement on the debt forgiveness needed for the poorest countries to stabilise their balance of payments and address structural issues that make their balance of payments fragile. In the event, adjustment has taken the form of austerity in the debt stressed countries, which reduces employment and real incomes of the already poor to curtail imports of essentials in order to reduce deficits. That this is underway is clear from the fact that the current account deficit of the Emerging Markets and Developed economies (EMDEs) excluding China and the OPEC has fallen.Q.What factors have significantly complicated the process of reaching a consensus on the crucial debt forgiveness required by the most impoverished nations?a)The diminishing streams of financial assistance from advanced economies governments.b)The upsurge in private capital movements.c)The existence of substantial bilateral financial transfers from China to less developed countries weighed down by deficits.d)All of the aforementioned.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Directions: Kindly read the passage carefully and answer the questions given beside.The global distribution of surpluses and deficits in the balance of payments, or the excesses or shortfall in foreign exchange earnings vis-à-vis expenditures, has for multiple reasons been in constant flux. This has implications for the directions in which capital must flow or surpluses must be recycled to deficit countries to ensure global stability and prevent the disruption of development in those countries. One factor that influences the distribution of surpluses and deficits is the uneven development of capitalism with a small set of ‘advanced economies’ at one pole recording surpluses and a large number of less developed or underdeveloped countries recording deficits. This changed, however, when starting in the 1970s, the United States began recording deficits, as it lost competitiveness in trade. In addition, the oil shocks of the 1970s in the form of a spike in prices resulted in a widening of the current account surpluses of the oil exporting countries. These factors blurred the distinction between surplus earning advanced economies and deficit burdened low- and idle-income countries (LMICs).These trends in the balance of payments have been accompanied by financial flows which too have seen significant changes. One change is that flows from governments in the advanced economies that are members of the Paris Club of creditors have been declining, with much of the official flows from these countries being mediated through the multilateral financial institutions. The second is a sharp rise in private capital flows, from commercial banks and private bondholders in search of yields from the advanced capitalist economies to the low and middle income countries. The third is that high growth and large current account surpluses in China have been accompanied by significant bilateral flows from China to the deficit-burdened less developed countries. These changes have made it extremely difficult to generate agreement on the debt forgiveness needed for the poorest countries to stabilise their balance of payments and address structural issues that make their balance of payments fragile. In the event, adjustment has taken the form of austerity in the debt stressed countries, which reduces employment and real incomes of the already poor to curtail imports of essentials in order to reduce deficits. That this is underway is clear from the fact that the current account deficit of the Emerging Markets and Developed economies (EMDEs) excluding China and the OPEC has fallen.Q.What factors have significantly complicated the process of reaching a consensus on the crucial debt forgiveness required by the most impoverished nations?a)The diminishing streams of financial assistance from advanced economies governments.b)The upsurge in private capital movements.c)The existence of substantial bilateral financial transfers from China to less developed countries weighed down by deficits.d)All of the aforementioned.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Directions: Kindly read the passage carefully and answer the questions given beside.The global distribution of surpluses and deficits in the balance of payments, or the excesses or shortfall in foreign exchange earnings vis-à-vis expenditures, has for multiple reasons been in constant flux. This has implications for the directions in which capital must flow or surpluses must be recycled to deficit countries to ensure global stability and prevent the disruption of development in those countries. One factor that influences the distribution of surpluses and deficits is the uneven development of capitalism with a small set of ‘advanced economies’ at one pole recording surpluses and a large number of less developed or underdeveloped countries recording deficits. This changed, however, when starting in the 1970s, the United States began recording deficits, as it lost competitiveness in trade. In addition, the oil shocks of the 1970s in the form of a spike in prices resulted in a widening of the current account surpluses of the oil exporting countries. These factors blurred the distinction between surplus earning advanced economies and deficit burdened low- and idle-income countries (LMICs).These trends in the balance of payments have been accompanied by financial flows which too have seen significant changes. One change is that flows from governments in the advanced economies that are members of the Paris Club of creditors have been declining, with much of the official flows from these countries being mediated through the multilateral financial institutions. The second is a sharp rise in private capital flows, from commercial banks and private bondholders in search of yields from the advanced capitalist economies to the low and middle income countries. The third is that high growth and large current account surpluses in China have been accompanied by significant bilateral flows from China to the deficit-burdened less developed countries. These changes have made it extremely difficult to generate agreement on the debt forgiveness needed for the poorest countries to stabilise their balance of payments and address structural issues that make their balance of payments fragile. In the event, adjustment has taken the form of austerity in the debt stressed countries, which reduces employment and real incomes of the already poor to curtail imports of essentials in order to reduce deficits. That this is underway is clear from the fact that the current account deficit of the Emerging Markets and Developed economies (EMDEs) excluding China and the OPEC has fallen.Q.What factors have significantly complicated the process of reaching a consensus on the crucial debt forgiveness required by the most impoverished nations?a)The diminishing streams of financial assistance from advanced economies governments.b)The upsurge in private capital movements.c)The existence of substantial bilateral financial transfers from China to less developed countries weighed down by deficits.d)All of the aforementioned.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Directions: Kindly read the passage carefully and answer the questions given beside.The global distribution of surpluses and deficits in the balance of payments, or the excesses or shortfall in foreign exchange earnings vis-à-vis expenditures, has for multiple reasons been in constant flux. This has implications for the directions in which capital must flow or surpluses must be recycled to deficit countries to ensure global stability and prevent the disruption of development in those countries. One factor that influences the distribution of surpluses and deficits is the uneven development of capitalism with a small set of ‘advanced economies’ at one pole recording surpluses and a large number of less developed or underdeveloped countries recording deficits. This changed, however, when starting in the 1970s, the United States began recording deficits, as it lost competitiveness in trade. In addition, the oil shocks of the 1970s in the form of a spike in prices resulted in a widening of the current account surpluses of the oil exporting countries. These factors blurred the distinction between surplus earning advanced economies and deficit burdened low- and idle-income countries (LMICs).These trends in the balance of payments have been accompanied by financial flows which too have seen significant changes. One change is that flows from governments in the advanced economies that are members of the Paris Club of creditors have been declining, with much of the official flows from these countries being mediated through the multilateral financial institutions. The second is a sharp rise in private capital flows, from commercial banks and private bondholders in search of yields from the advanced capitalist economies to the low and middle income countries. The third is that high growth and large current account surpluses in China have been accompanied by significant bilateral flows from China to the deficit-burdened less developed countries. These changes have made it extremely difficult to generate agreement on the debt forgiveness needed for the poorest countries to stabilise their balance of payments and address structural issues that make their balance of payments fragile. In the event, adjustment has taken the form of austerity in the debt stressed countries, which reduces employment and real incomes of the already poor to curtail imports of essentials in order to reduce deficits. That this is underway is clear from the fact that the current account deficit of the Emerging Markets and Developed economies (EMDEs) excluding China and the OPEC has fallen.Q.What factors have significantly complicated the process of reaching a consensus on the crucial debt forgiveness required by the most impoverished nations?a)The diminishing streams of financial assistance from advanced economies governments.b)The upsurge in private capital movements.c)The existence of substantial bilateral financial transfers from China to less developed countries weighed down by deficits.d)All of the aforementioned.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CLAT tests.