Adjustment is the process by which balance-of-payments disequilibria are corrected.

Question

Quizplus · Accepted Answer

Adjustment refers to the actions taken by countries to correct their balance-of-payments deficits or surpluses. The process of adjustment involves changes in a country's exchange rate, interest rates, fiscal policy, and monetary policy to restore equilibrium in the foreign trade and capital flows. Thus, the statement is correct, and option A is the correct answer.

Adjustment Is the Process by Which Balance-Of-Payments Disequilibria Are Corrected