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The balance of payments of a country is in equilibrium when the-
  • a)
    demand for the domestic currency is the lowest
  • b)
    demand, as well as supply of the domestic currency, are the highest
  • c)
    demand for the domestic currency is equal to its supply
  • d)
    demand for the domestic currency is the highest
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
The balance of payments of a country is in equilibrium when the-a)dem...
Balance of payments equilibrium occurs when induced balance of payments transactions---those engineered by the government to influence the nominal exchange rate---are zero.
Hence the option C is correct.
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The balance of payments of a country is in equilibrium when the-a)demand for the domestic currency is the lowestb)demand, as well as supply of the domestic currency, are the highestc)demand for the domestic currency is equal to its supplyd)demand for the domestic currency is the highestCorrect answer is option 'C'. Can you explain this answer?
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The balance of payments of a country is in equilibrium when the-a)demand for the domestic currency is the lowestb)demand, as well as supply of the domestic currency, are the highestc)demand for the domestic currency is equal to its supplyd)demand for the domestic currency is the highestCorrect answer is option 'C'. Can you explain this answer? for SSC 2024 is part of SSC preparation. The Question and answers have been prepared according to the SSC exam syllabus. Information about The balance of payments of a country is in equilibrium when the-a)demand for the domestic currency is the lowestb)demand, as well as supply of the domestic currency, are the highestc)demand for the domestic currency is equal to its supplyd)demand for the domestic currency is the highestCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for SSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The balance of payments of a country is in equilibrium when the-a)demand for the domestic currency is the lowestb)demand, as well as supply of the domestic currency, are the highestc)demand for the domestic currency is equal to its supplyd)demand for the domestic currency is the highestCorrect answer is option 'C'. Can you explain this answer?.
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