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Question
Disequilibrium in the balance of payments leads to:
Options:
A .  none of these
B .  both (a) and (b)
C .  decrease in official reserves with RBI
D .  increase in official reserves with RBI
Answer: Option B
:
B
Disequilibrium in the BoP can cause an increase or a decrease in the official reserves, depending on whether there is a deficit or a surplus.

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