Question

18. Which of the following is not a cause of Balance of Payment (BOP) disequilibrium ?
(A) large population
(B) Adverse terms of trade
(C) strong currency
(D) All of these​

Answer 1

Answer:

all of these are causes of balance of payment

Answer 2

Option (D) is the correct option.

Explanation:

Causes of Balance of Payment (BOP) disequilibrium are:

• Cyclical fluctuations
• Structural Changes
• Natural Calamites
• Rapid increase in population
• Short fall in the exports
• Economic Development
• International Capital Movements

Therefore, the options, (A) large population, (B) Adverse terms of trade, (C) strong currency are not a cause of Balance of Payment (BOP) disequilibrium.

Hence, Option (D) i.e. All of these is the correct option.