Question

"An adverse balance of payments is always a sign of weakness in the economy".Comment

Answer 1

The balance of payment is the record of money coming inside the country and also the money going out of the country. An adverse balance of payment is the condition in which more money leaves the country as compared to the money which comes in the country's economy. So if more money is going out of the country then the condition of the country will become worse, which is why this is a sign of weakness in the economy.