Home › Bihar Board Class 12 (Arts) › Economics › Open Economy Macroeconomics › A BoP crisis occurs when a nation cannot pay for
A BoP crisis occurs when a nation cannot pay for
ALuxury goods
BEssential imports
CLocal salaries
DMunicipal taxes
Answer & Solution
Correct answer: B. Essential imports
Inability to fund essential imports or service external debt defines a currency crisis.
Related questions
Which of these is part of the current account as per the BoP definition?If outflows exceed inflows, all else equal, a currency is likely to come under pressure toAfter Bretton Woods, the principal de facto reserve currency has been theA stronger currency tends to make a nation's exportsWho developed the theory of comparative advantage?Which 1997 event led emerging economies to rethink reliance on free markets?The Bretton Woods system came to an end between which years?Under Bretton Woods, which currency alone stayed convertible into gold?