Balance of payment deficit may be caused by?
- revaluation of currency
- sales of foreign reserves
- unrestricted exports
-
unrestricted imports
The correct answer is: D
Explanation
A balance of payment is a situation in which imports of goods, services, investment income and transfers exceed the exports of goods, services, investment income and transfers. If a country doesnt restrict the importation of goods or services, it will end up with a deficit payment balance. ei, it will pay out more of its money and investment to foreigners. this can crumble the economy.