12th Class Economics Financial Market / वित्तीय बाजार Question Bank MCQs - Balance of Payments

  • question_answer
    Increase in domestic interest rate on investment leads to surplus in capital account.

    A) True

    B) False

    C) Partially true

    D) Can't be predicted

    Correct Answer: A

    Solution :

    When domestic interest rate increase, foreign investors invest in the domestic country leading to inflow of foreign exchange and surplus in current account of BoP.


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