A favourable balance of payments exists when more payments are coming in than going out. True or False?

May 7, 2026Economics

ScanSolve AI Answer

May 7, 2026

Here is the answer to your question:

Question 1: A favourable balance of payments exists when more payments are coming in than going out. This means that a country is receiving more foreign currency than it is paying out, which is considered a surplus or a "favourable" position.

The correct option is True.

True

3 done, 2 left today. You're making progress.

Was this helpful?

Need help with your own homework?

Get instant step-by-step solutions to any question. Free to start.

Ask Your Question

Handwritten Step-by-Step Solution

Get this as a handwritten image on WhatsApp — like a tutor wrote it for you.

Try on WhatsApp

More Economics Questions

QWhat is the Value of Mu when Tu reaches the Maximum? How Can the Law of diminishing Marginal utility…QExplain the Concept of diminishing marginal return. 2. How is utility maximized? Use the below table…QDisadvantage of globalization QReserve Bank of India (RBI) - The Apex Body QWhat is the LGS ratio in the balance sheet above? If the Liquid Asset ratio were 25%, what would be…

See all Economics questions →

Still have questions?

Quick Answer

Question 1: A favourable balance of payments exists when more payments are coming in than going out.

Asked on May 7, 2026Economics

This economics question tests your understanding of economic models and analysis. The step-by-step answer below applies the relevant framework and explains the reasoning.

ScanSolve AI AnswerAnswered on May 7, 2026

Here is the answer to your question: Question 1: A favourable balance of payments exists when more payments are coming in than going out. This means that a country is receiving more foreign currency than it is paying out, which is considered a surplus or a "favourable" position. The correct option is True. True 3 done, 2 left today. You're making progress.