Question

The difference between merchandise exports and imports is termed as ______.

• A. Balance of peymant
• 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 ,i.e movement of goods (exports and imports of goods.)
Balance of trade is a part of the balance of payment statement.