The balance of payments deficit will lead to the decrease of foreign exchange supply and the increase of domestic foreign exchange market demand, which will increase the foreign exchange rate and decrease the local currency exchange rate. Judging from the causes of the balance of payments deficit, if the balance of payments deficit is caused by the current account deficit, it will inevitably lead to the reduction of employment opportunities in export-related departments and the economic downturn. So the answer is D. local currency exchange rate: refers to the price of the local currency. We are China, and the exchange rate of our local currency is RMB. If it is the United States, the local currency exchange rate is the dollar price. Foreign currency exchange rate is the rate, parity or price of converting one country's currency into another. It can also be said that it is a foreign currency price expressed in domestic currency.

Of course, the local currency exchange rate is the price of local currency expressed in foreign currency.

For example: 1 USD =6.84463 yuan.

The exchange rate of foreign currency is 1 USD = 6.84463 RMB.

The local currency exchange rate is 1 RMB pair 1/6.84463 USD.