1
Question
To keep the balance of payments deficit from becoming excessive, an under-developed country should ____________.
To keep the balance of payments deficit from becoming excessive, an under-developed country should ____________.
Open in App
Solution
The correct option is C Increase the quantum of exports
Balance of payments abbreviated as B.O.P. refers to the record of all the economic transactions which take place between
the country and the remaining world. This record is for a particular period of
time.
Under-developed countries import more and more from foreign markets. To
accomplish imports, they have to pay huge amount of money. However, the decline in
demand for the country’s product in foreign markets affect B.O.P. Thus, the quantum of
exports must be increased to combat excessive B.O.P.
The correct option is C.
Balance of payments abbreviated as B.O.P. refers to the record of all the economic transactions which take place between the country and the remaining world. This record is for a particular period of time.
Under-developed countries import more and more from foreign markets. To accomplish imports, they have to pay huge amount of money. However, the decline in demand for the country’s product in foreign markets affect B.O.P. Thus, the quantum of exports must be increased to combat excessive B.O.P.
The correct option is C.
Suggest Corrections
0
Similar questions
View More
Join BYJU'S Learning Program
Explore more
Join BYJU'S Learning Program
