Business Studies, asked by Shreyapyata6152, 1 year ago

Explain the impication of equilibrium and disequailibrium in the balance of payment

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Answered by Anonymous

When the balance of payments of a country is in equilibrium, the demand for the domestic currency is equal to its supply. ... Equilibrium in the balance of payments, therefore, is a sign of the soundness of a country's economy. But disequilibrium may arise either for short or for long periods.

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