Question:
A change in exchange rate leads to a change in supply and demand of foreign goods in the domestic market and domestic goods in the foreign market. This also leads to an imbalance in the balance of payments. What is Balance of Payments?
A change in exchange rate leads to a change in supply and demand of foreign goods in the domestic market and domestic goods in the foreign market. This also leads to an imbalance in the balance of payments. What is Balance of Payments?
Updated On: Aug 5, 2024
- Balance of payments is the statement of a country’s trade with other nations.
- Balance of payments is the money a country owes other nations.
- Balance of payments is the money owed to a country from another nation.
- None of the above
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The Correct Option is A
Solution and Explanation
The correct option is (A): Balance of payments is the statement of a country’s trade with other nations.
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