MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Items in the BOP

Deficit in ba...

Question

Deficit in balance of trade indicates deficit in balance of payments also.

A

True

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

False

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is B False
BOP is a wider concept and includes other components of current and capital account. Deficit BOT can affect BOP but doesn't necessarily lead to deficit BOP.

Suggest Corrections

thumbs-up

0

Similar questions

Q. What is meant by deficit in balance of payments?

Q. What is 'current account deficit' in the balance of payments?

Q. (a) Explain the impact of rise in exchange rate on national income.
(b) Explain the concept of 'deficit' in balance of payments.

Q. A balance of trade deficit of Rs.15,000 implies ________.

Q. Excess of foreign exchange receipts over foreign exchange payments on account of accommodating transactions equals deficit in the balance of payments.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Balance of Payments

ECONOMICS

Watch in App

explore_more_icon

Explore more

Items in the BOP

Standard XII Economics

Join BYJU'S Learning Program

CrossIcon