Question

_______ is the difference between value of goods sold to foreign and value of goods imported from foreign country.

• A. Balance of payment
• B. Balance of trade
• C. Balance of current account
• D. Balance of capital account

Answer 1

The correct option is B Balance of trade

Balance of Trade: It refers to the total value of country's export commodities and total value of imports commodities. Thus, balance of trade includes only visible trade , ie movement of goods (exports and imports of goods.) Balance of trade is a part of the balance of payment statement.