Question

A debit balance of payments occurs due to which of the following?
i) Low imports and high exports
ii) High imports and low exports

• A. Both (i) and (ii) are correct
• B. Both (i) and (ii) are incorrect
• C. Only (i) is correct
• D. Only (ii) is correct

Answer 1

Answer: (A)

Both (i) and (ii) are correct

A debit balance of payment occurs due to low imports and high exports and when there are high imports and low exports. It also depends on the value f the exports and imports.