WBCS.LIVE practice question

The balance of payments of a country is in equilibrium when the-

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Demand as well as supply of the domestic currency are the highest
  2. Demand for the domestic currency is equal to its supply
  3. Demand for the domestic currency is the highest
  4. Demand for the domestic currency is the lowest

Correct answer and explanation

Correct answer: Demand for the domestic currency is equal to its supply