Give one alternative which one can use to finance the deficit on curre – InterviewSolution

1.	Give one alternative which one can use to finance the deficit on current account BOP in case official reserves with the RBI are not moved?
Answer» This should lead to a rise in EXPORTS and fall in imports. (Q13) How do we FINANCE the deficit on current account BOP in case OFFICIAL reserves with the RBI are not moved? Ans: We are left with two alternatives only : ... may be due to excessive imports of goods and SERVICES which are useful for the growth of the economy.

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