Question

If India exports goods worth Rs.$20$ crores and imports goods worth Rs.$30$ crores, it will ________________.

• A. have a surplus of Rs$10$ crores in balance of trade
• B. have a deficit of Rs$10$ crores in balance of trade
• C. have a deficit of Rs$50$ crores in balance of trade
• D. can't say

Answer 1

The correct option is B have a deficit of Rs$10$ crores in balance of trade

BOT = Export-Import i.e. Rs.20 - 30 = Rs. 10 crore deficit. When imports exceed exports then the balance is in deficit.

Hence, option B is correct.