Balance of payment deficit may be caused by?

A. revaluation of currency
B. sales of foreign reserves
C. unrestricted exports
D. unrestricted imports

Correct Answer: Option D

D. unrestricted imports

Explanation

A balance of payment is a situation in which imports of goods, services, investment income, and transfers exceed the exports of goods, services, investment income, and transfers. If a country doesn’t restrict the importation of goods or services, it will end up with a deficit payment balance. i.e, it will pay out more of its money and investment to foreigners. this can crumble the economy.