In the foreign exchange​ market, a balance of payments deficit is represented​ by: A. equilibrium in the foreign exchange market. B. excess demand for dollars. C. excess supply of dollars. D. none of the above.

C.

excess supply of dollars.

Explanation

Balance of payment represents the statement of all transactions that a country makes with the rest of the world within a given period of time. A balance of payment deficit in forex trade refers to the excess supply of dollars in the exchange market while a surplus indicates excess demand for dollars.

Reference

International Economics sixth edition

By Robert M. Dunn, John H. Mutti Page 294