Question

What is disequilibrium in the balance of payment? Explain the causes of disequilibrium in Balance of Payment.

Answer 1

Hey mate!

I am here with your answer!

Disequilibrium of Surplus arises when the receipts of the country exceed its payments. Such a situation arises when the effective demand for foreign exchange is less than its supply. Such a surplus disequilibrium is termed as 'favourable balance'.

Hope this will help you!