InterviewSolution
 Saved Bookmarks
    				| 1. | 
                                    Explain any two causes of disequilibrium in the balance of payment in an economy. | 
                            
| 
                                   
Answer»  (a) The imbalance between exports and imports because of large scale development expenditure which causes large imports, high domestic prices which leads to imports and cyclical fluctuations like recession or depression. (b) Political instability and disturbances cause large capital outflows and hinder inflows of foreign capital.  | 
                            |