In a situation of Balance of payments deficit, which of the following will be true? Option 1: Official reserves will increase Option 2: Official reserves will fall. Option 3: Official reserves will not be affected. Option 4: There will be an increase in international lending of the economy.

The answer is 'Official reserves will fall.'. View full solution:

CUET Economics - In a situation of Balance of payments deficit, which of the following will be true? | PYQs + Solutions

CUET Economics 2025 16 May Shift 1

Macro

Medium

Official reserves will increase

Official reserves will fall.

Official reserves will not be affected.

There will be an increase in international lending of the economy.

✅ Correct Option: 2