New Free Workshop on RBI Grade B Descriptive Answer Writing - Join Us!
Register

Question

Closed economy is an economy in which? 

A Physical borders are fully sealed Correct Answer Incorrect Answer
B Money supply is controlled by the government Correct Answer Incorrect Answer
C Fiscal deficit is zero Correct Answer Incorrect Answer
D Export import is not allowed Correct Answer Incorrect Answer
E Import is not allowed Correct Answer Incorrect Answer

Solution

A closed economy is self-sufficient, meaning no imports are brought in and no exports are sent out, the goal being to provide consumers with everything they need from within the economy's borders. A closed economy is the opposite of an open economy, in which a country conducts trade with outside regions.

Practice Next

Relevant for Exams:

×
×