BANKING AFFAIRS

Detailed explanation-1: -GNP and GDP are for a closed economy.

Detailed explanation-2: -A closed economy is a self-reliant economy where the goods produced at home are responsible for the national income and there is no income from abroad. Q. In a closed economy, gross domestic product is always equal to gross national product.

Detailed explanation-3: -The correct answer is There is no foreign trade. A closed economy is one that has no trading activity with outside economies. The closed economy is therefore entirely self-sufficient, which means no imports come into the country and no exports leave the country.

Detailed explanation-4: -The Closed Economy: An Introduction There are two ways of measuring GDP. The first is as the sum of the total income of everyone in the economy. The second is the total expenditure on the economy’s output of goods and services.