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Balance of payment deficit may be caused by?

Balance of payment deficit may be caused by?
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Revaluation of currency
  • B Sales of foreign reserves
  • C Unrestricted exports
  • D Unrestricted imports
Correct Answer: Option 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.

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