Question

In a financial year, a country recorded import of 15 billion dollar and export of 10 billion dollar. Which among the following terms can be used for the balance of payment of the country for that year?

• A. Surplus in balance of payment
• B. Deficit in balance of payment
• C. Balanced trade
• D. International trade deficit

Answer 1

The correct option is B Deficit in balance of payment

Balance of payment is the record of international monetary transactions of a country. When imports of a country are more than exports, it can be referred to as a deficit balance of payments.