Deficit in balance of payments account arises when total inflows (receipts) on account of autonomous transactions are less than total outflows (payments) on account of such transactions.
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Similar Questions
Q1
What is meant by deficit in balance of payments?
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Q2
What is 'current account deficit' in the balance of payments?
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Q3
Deficit in balance of trade indicates deficit in balance of payments also.
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Q4
What is meant by 'official reserve transactions'? Discuss their importance in the Balance of Payments.
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Q5
(a) Explain the impact of rise in exchange rate on national income. (b) Explain the concept of 'deficit' in balance of payments.