Question : A favorable balance of payments occurs when the value of ________________exceeds the value of_______________.
Option 1: imports, exports
Option 2: exports, imports
Option 3: income, transfers
Option 4: services, goods
Answer (1)
10th Jan, 2024
Correct Answer: exports, imports
Solution : The correct answer is (b) exports, imports
A favorable balance of payments occurs when the value of a country's exports exceeds the value of its imports. In other words, it indicates that a country is earning more from its exports of goods and services than it is spending on imports. This leads to a surplus in the current account, which is a component of the balance of payments.
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