Determining total receipts-Balance of Payment
When Balance of payment of a country is Rs (-) 100 crores and total payment are Rs 500 crores. Determine its total receipts.
Expert
Balance of Payment = Total receipts - Total payments Total receipts = Total Payment + BOP =500 + (-100) =500 – 100 = 400
Describe the meaning of deficit in BOP: Whenever autonomous foreign exchange payments surpass autonomous foreign exchange receipts, the difference is termed as balance of payments deficit.
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