The term trade deficit refers to ___________.

shortage of consumer goods

No worries! We‘ve got your back. Try BYJU‘S free classes today!

losses incurred in commercial business

No worries! We‘ve got your back. Try BYJU‘S free classes today!

overdrafts obtained by traders from banks

No worries! We‘ve got your back. Try BYJU‘S free classes today!

excess of imports over exports

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D excess of imports over exports
Ans D) Excess of import over export
A trade deficit occurs when a country's imports exceed its exports during a given time period. A trade deficit represents an outflow of domestic currency to foreign markets. It is also referred to as a negative balance of trade (BOT).
Trade Deficit = Total Value of Imports – Total Value of Exports

Suggest Corrections

Similar questions

R s . 300

R s . 500

The balance of trade shows a deficit of Rs 4,000 crore and the value of imports are Rs 10,000 crore. What is the value of exports?

If balance of trade is showing a deficit of Rs 200 crore and the value of exports is Rs 700 crore, then, the value of imports would be:

Join BYJU'S Learning Program