Question

Which of the following incidents triggered the BOP crisis in 1991?

• A. Mounting external debt
• B. Rising import bill
• C. Rising foreign reserves
• D. Devaluation

Answer 1

Answer: (A), (B), (D)

The correct options are
A

Mounting external debt

B

Rising import bill

D

Devaluation

Rising foreign reserves is the incorrect answer because, during this time, foreign reserves were declining rapidly.