Question

Is improvement in exchange rate of a country's currency always beneficial for BoP?

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Answer 1

Answer:

Improvement in exchange rate of the country's currency does not necessarily mean improvement in BOP status of the country. Ans: True. Improvement in country's exchange rate may in fact cause deficit BOP equilibrium, because exports may decrease and imports may increase.

Answer 2

Answer:

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Explanation:

Improvement in exchange rate of the country's currency does not necessarily mean improvement in BOP status of the country. Ans: True. Improvement in country's exchange rate may in fact cause deficit BOP equilibrium, because exports may decrease and imports may increase.