‘Owing to the Russia-Ukraine crisis, the world is experiencing rising crude prices due to supply-side issues.’
Identify the most likely impact on the Balance of Payment situation of the Indian economy from the following:
- Production of cars in India will rise.
- Production and sale of cycles in India will rise.
- Inflow of US Dollars in India will rise.
- Outflow of US Dollars from India will rise.
Answer:
d. Outflow of US Dollars from India will rise.