Describe the causes for disequilibrium in BOP.

Solution

(i) Large imports due to large scale development expenditure.
(ii) High domestic prices.
(iii) New sources of supply and new substitutes.
(iv) Political instability.
(v) Changes in taste, fashion and preferences.

Some More Questions From Open Economy Macroeconomics Chapter

What are the features of Balance of Payment Account?

Describe components of Balance of Payment Account.

What is meant by visible and invisible items in BOP Account? Give two examples of invisible items.

What is balance of trade?
or
Which two transactions determine BOT?
or
What is the difference between the values of exports and imports of goods called?
or
When will BOT show a surplus?
or
When is there deficit in BOT?
or
What is balance of visible items in BOP accounts called?

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Open Economy Macroeconomics

Describe the causes for disequilibrium in BOP.

Some More Questions From Open Economy Macroeconomics Chapter

What are the features of Balance of Payment Account?

Describe components of Balance of Payment Account.

What is meant by visible and invisible items in BOP Account? Give two examples of invisible items.

What is balance of trade?
or
Which two transactions determine BOT?
or
What is the difference between the values of exports and imports of goods called?
or
When will BOT show a surplus?
or
When is there deficit in BOT?
or
What is balance of visible items in BOP accounts called?

BOT shows a deficit of र 5,000 crores and value of imports are र 9,000 crores. What is the value of exports?

The value of a country’s import of goods is र 200 crores, and value of export is र 250 crores. Find out its BOT.

A country’s balance of trade is र (–) 60 crores and value of import of goods is र 100 crores. out value of export of goods.

What is meant by balance of payment (BOP) account?
or
What does BOP account record?
or
Where are borrowings from abroad recorded and why

Balance of payment always balances. Comment.

When does a situation of deficit/surplus in BOP arise?
or
Explain meaning of deficit in BOP.

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Open Economy Macroeconomics

Describe the causes for disequilibrium in BOP.

Some More Questions From Open Economy Macroeconomics Chapter

What are the features of Balance of Payment Account?

Describe components of Balance of Payment Account.

What is meant by visible and invisible items in BOP Account? Give two examples of invisible items.

What is balance of trade? orWhich two transactions determine BOT?orWhat is the difference between the values of exports and imports of goods called? orWhen will BOT show a surplus? orWhen is there deficit in BOT?orWhat is balance of visible items in BOP accounts called?

BOT shows a deficit of र 5,000 crores and value of imports are र 9,000 crores. What is the value of exports?

The value of a country’s import of goods is र 200 crores, and value of export is र 250 crores. Find out its BOT.

A country’s balance of trade is र (–) 60 crores and value of import of goods is र 100 crores. out value of export of goods.

What is meant by balance of payment (BOP) account?orWhat does BOP account record?orWhere are borrowings from abroad recorded and why

Balance of payment always balances. Comment.

When does a situation of deficit/surplus in BOP arise?orExplain meaning of deficit in BOP.

Mock Test Series

NCERT Sample Papers

Entrance Exams Preparation

What is balance of trade?
or
Which two transactions determine BOT?
or
What is the difference between the values of exports and imports of goods called?
or
When will BOT show a surplus?
or
When is there deficit in BOT?
or
What is balance of visible items in BOP accounts called?

What is meant by balance of payment (BOP) account?
or
What does BOP account record?
or
Where are borrowings from abroad recorded and why

When does a situation of deficit/surplus in BOP arise?
or
Explain meaning of deficit in BOP.