CBSE Class 12-commerce Answered
what are the conciquences of deficient balance of payments?
Asked by vermamanisha2512 | 05 Sep, 2019, 09:03: PM
Expert Answer
Consequences of BOP deficit are:
1. It creates a liability on the country and also makes it a debt country.
2. Discourages investors
3. To finance the deficit the borrowing requirements of the country increases. Also selling of assets reduces the asset holdings of the country
4. Stock of foreign exchange depletes.
Answered by Christina | 06 Sep, 2019, 09:57: AM
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