Question

Balance of trade of a country is equivalent to __________________.

• A. difference between the inward and outward remittances made in foreign exchange
• B. surplus generated shown in a trading account
• C. difference between exports and imports
• D. none of the above

Answer 1

Answer: (C)

difference between exports and imports

Balance of trade refers to that balance of a country which remains after the trade in both goods and services, thus, basically showing the difference between exports and imports of a country. The balance of trade of a country is also termed as net exports of a country.