Consider the following 1 BoP crisis arises when the countrys forex reserves are not enough to balanc...........

Economic Affairs Balance of Payments

Consider the following:

1. BoP crisis arises when the country's forex reserves are not enough to balance a combined deficit in current and capital accounts for a sustained time.

2. BoP crisis can be tackled through demonetisation.

3. World Bank helps countries to overcome their BoP crisis.

Choose the correct answer from the codes Below

1 only

2 and 3

1 and 3

All are correct

छोटे Courses बड़े Results

Master Balance of Payments

Prepare through Micro-courses

Try Now

Explanation:

currency devaluation can help in BoP rather than demonetisation.
It is not World Bank but IMF that helps countries overcome their BoP crisis but puts forth certain conditionalities such as ushering of structural reforms.