BANKING GENERAL KNOWLEDGE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
difference between the inward and outward remittances made in foreign exchange.
|
|
|
surplus generated shown in a trading account.
|
|
|
difference between exports and imports.
|
|
|
All of the above
|
Detailed explanation-1: -Balance of trade (BOT) is the difference between the value of a country’s exports and the value of a country’s imports for a given period. Balance of trade is the largest component of a country’s balance of payments (BOP).
Detailed explanation-2: -Balance of trade refers to that balance of a country which remains after the trade in both goods and services, thus, basically showing the difference between exports and imports of a country. The balance of trade of a country is also termed as net exports of a country.
Detailed explanation-3: -If the exports of a country exceed its imports, the country is said to have a favourable balance of trade, or a trade surplus. Conversely, if the imports exceed exports, an unfavourable balance of trade, or a trade deficit, exists.
Detailed explanation-4: -Balance of trade simply measures whether a country is exporting or importing more goods and services. It is a net measurement (exports minus imports) usually expressed in the exporting country’s currency.
Detailed explanation-5: -Balance of trade is measured as the difference between import and exports of goods.