Improvement in the balance of payments deficit may be effected through: A. Import controls B. Export promotion C. Foreign exchange control D. Devaluation Choose the correct answer from the options given below:
A, B, C and D
All four may help correct an external deficit: import controls reduce import demand, export promotion increases foreign earnings, exchange controls regulate foreign-currency use, and devaluation can encourage exports and discourage imports. These are possible adjustment measures, not guaranteed remedies; devaluation’s effectiveness depends on demand responses and timing.
Important Questions from Balance of payments (BOP)
Which one of the following is NOT a part of the current account of a country's balance of payments?
Which of the following statements is correct?
Which of the following statements is INCORRECT?
Balance of Trade is measured as:
- If there is a balance of payments deficit then in a floating exchange rate system :
