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

  • question_answer
    Favourable dis-equilibrium in BoP account leads to

    A) Increase in official reserve with RBI

    B) Decrease in official reserve with RBI

    C) No change in official reserve with RBI

    D) Both (a) and (b)

    Correct Answer: B

    Solution :

    Favourable dis-equilibrium means surplus in BoP. In this situation, amount equal to the amount of surplus is invested abroad to bring BoP in equilibrium, leading to fall in foreign exchange reserves with RBI.


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