How can a country reduce the BOP deficit? Option 1: Promoting exports and attracting investment. Option 2: Increasing imports. Option 3: Stopping trade with other countries. Option 4: Increasing domestic borrowings.

The answer is 'Promoting exports and attracting investment.'. View full solution:

CUET Economics - How can a country reduce the BOP deficit? | PYQs + Solutions

CUET Economics 2025 30 May Shift 1

Macro

Easy

Promoting exports and attracting investment.

Increasing imports.

Stopping trade with other countries.

Increasing domestic borrowings.

✅ Correct Option: 1

Related questions:

16 May Shift 1

Balance of payments of an economy is in surplus when__________

CUET Economics 2022 Slot 1

Match List I with List II

List I - Foreign Exchange Rate	List II - Derived Meaning
A. Fixed exchange rate	I. Mixture of fixed and flexible exchange rate system.
B. Floating exchange rate	II. Determined by government.
C. Managed floating	III. Expectation of gain from appreciation of the currency
D. Speculation	IV. Determined by market forces of demand and supply of forex

Choose the correct answer from the options given below:

29 May Shift 1

Which of the following international transactions are meant to bridge the gap in BOP