Excess of foreign exchange receipts over foreign exchange payment on account of autonomous transaction leads to deficit in the balance of payments. Comments.

Excess of foreign exchange receipts over foreign exchange payment on a

1.	Excess of foreign exchange receipts over foreign exchange payment on account of autonomous transaction leads to deficit in the balance of payments. Comments.
Answer» Solution :The given statement is incorrect. Excess of FOREIGN exchangereceipt over foreign exchange payments on ACCOUNT of autonomous transaction leads to surplus in the balance of payments. Deficit in the balance of payments OCCURS when foreign exchange RECEIPTS fall short of foreign exchange payments.

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Excess of foreign exchange receipts over foreign exchange payment on account of autonomous transaction leads to deficit in the balance of payments. Comments.

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