Question

Which of the following is not the cause of deficit in the balance of payment?​

Answer 1

Answer:

Causes of deficit in BOP

There are various factors which could cause a current account deficit:

   Overvalued exchange rate. ...

   Economic growth. ...

   Decline in competitiveness/export sector. ...

   Higher inflation. ...

   Recession in other countries. ...

   Borrowing money. ...

   Financial flows to finance current account deficit.