Question : The balance of trade is a part of which account in the Balance of Payments?
Option 1: Current Account
Option 2: Capital Account
Option 3: Financial Account
Option 4: Reserve Account
Answer (1)
23rd Jan, 2024
Correct Answer: Current Account
Solution :
The correct answer is a) Current Account.
The balance of trade is a part of the Current Account in the Balance of Payments. The balance of trade specifically refers to the difference between the value of a country's exports and the value of its imports of goods and services. It is a key component of the Current Account, which records the trade in goods, services, income from investments, and unilateral transfers.
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