If a country experiences deficit in the balance of payments account, it can be corrected by the policy…
Exchange controls and import quotas can reduce pressure on the balance of payments by restricting foreign-exchange use and imports. A lower bank rate can stimulate spending…
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If a country experiences deficit in the balance of payments account, it can be corrected by the policy of __________
Answer and explanation
Correct answer D
Exchange controls and import quotas can reduce pressure on the balance of payments by restricting foreign-exchange use and imports. A lower bank rate can stimulate spending and imports, while demonetization does not directly address the external payments imbalance.
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Maharashtra and Goa SET (MH SET)