Which of the following steps improve adverse Balance of Payments?
The correct option is B Devaluation
An adverse balance means more money leaves a country than enters it. An adverse balance is a strongly negative sign for that country's economy. Devaluation is reduction in the exchange value of a country's monetary unit in terms of gold, silver, or foreign monetary units. Devaluation is employed to eliminate persistent balance-of-payments deficits. A downward shift in the value of a nation's currency makes it more
expensive for its citizens to buy imports and increases the
competitiveness of their exports, thus helping to correct a deficit in the Balance of Payments.