Balance of payment deficit may be caused by?
-
A.
revaluation of currency -
B.
sales of foreign reserves -
C.
unrestricted exports -
D.
unrestricted imports
Correct Answer: Option D
Explanation
A balance of payment is a situation in which imports of goods, services, investment income and transfers exceed the exports of goods, services, investment income and transfers. If a country doesnt restrict the importation of goods or services, it will end up with a deficit payment balance. ei, it will pay out more of its money and investment to foreigners. this can crumble the economy.