Question

is the difference between the monetary values of exports and imports of a country.

• A. Balance of payment
• B. Balance of trade
• C. Balance on account
• D. Balance of exchange

Answer 1

The correct option is B Balance of trade

Balance of trade refers to the difference between the monetary values of exports and imports of a country. If the value of exports is more than the value of imports, the country is said to have experienced a favourable balance of trade. Similarly, if the value of imports is more than the value of exports, the country is said to have experienced an unfavourable balance of trade.