Sandeep Garg Class 12 Macroeconomics Solutions Chapter 12: Balance of Payments are explained by the expert Economics teachers from the latest edition of Sandeep Garg Macroeconomics Class 12 textbook solutions. We at BYJU’S provide Sandeep Garg Economics Class 12 Solutions to give comprehensive insight about the subject to the students. These insights help as a priceless benefit to students while completing their homework or while studying for their exams. There are numerous concepts in Economics, but here we provide you the solutions from Chapter 12: Balance of Payments, which will be useful for the students to score well in the board exams.
Sandeep Garg Solutions Class 12 – Chapter 12 – Part B
What are the two components of the Balance of Payment account?
Ans: The two components of the Balance of Payment account are:
- Current account
- Capital account
Define balance of payment.
Ans: Balance of payment is an accounting statement that provides a systematic record of all the economic transactions between the residents of a country and the rest of the world during a given period of time.
What are the two alternative names of the balance of trade?
Ans: The two alternative names of the balance of trade are:
- Balance of visible trade
- Trade balance
Name the items included in the balance of trade account.
Ans: The items included in the balance of trade account are:
- Exports of visible items (goods)
- Imports of visible items (goods)
What is the current account?
Ans: The current account refers to the account which records all the transactions relating to export and import of goods, services, and unilateral transfers during a given period of time.
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What is the capital account?
Ans: The capital account of the balance of payment records all the transactions, between the residents of a country and the rest of the world, which cause a change in all assets or liabilities of the residents of the country or its government.
Define trade deficit.
Ans: Trade deficit means excess import of goods and services over exports of goods.
When will there be a surplus in the Balance of Trade account?
Ans: When exports of visible items are more than imports of visible items.
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