Question

Give one alternative which one can use to finance the deficit on current

account BOP in case official reserves with the RBI are not moved?​

Answer 1

Answer:

This should lead to a rise in exports and fall in imports. (Q13) How do we finance the deficit on current account BOP in case official reserves with the RBI are not moved? Ans: We are left with two alternatives only : ... may be due to excessive imports of goods and services which are useful for the growth of the economy.

Explanation:

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