Question : What is the term used to describe the total value of a country's exports minus the total value of its imports?
Option 1: Trade deficit
Option 2: Trade surplus
Option 3: Balance of Trade
Option 4: Capital account balance
Correct Answer: Balance of Trade
Solution : The correct answer is c) Balance of Trade
The term used to describe the total value of a country's exports minus the total value of its imports is the balance of trade. The balance of trade is a component of the current account in a country's balance of payments. It represents the difference between the value of goods and services a country exports and the value of goods and services it imports over a given period of time.
When a country's exports exceed its imports, it has a trade surplus, indicating that it is exporting more than it is importing. Conversely, when a country's imports exceed its exports, it has a trade deficit, indicating that it is importing more than it is exporting.
The balance of trade is an important indicator of a country's international trade position and can have implications for its economy, currency value, and overall economic performance.
